Aloha Home Sellers. Unfortunately for owners of fixer-uppers, when competing in the real estate market, most buyers are searching for the convenience that comes with properties they can move into immediately. It is inevitable that the buyer will scroll right by a listing that doesn’t fit the criteria for what they want in a home. Because of this, sellers understand they are up against a severe challenge when the inspector arrives and they will most likely lose sleep awaiting the impending report.
Your sales profits will likely go down directly in the aftermath of the inspection results. This is because buyers are more likely to back out or request you allow credit for the repairs, often with excessively high estimates. When you’ve got a property that needs repairs or total rehabilitation, the situation will likely only progress into further distress as repairs on the property are delayed, increasing costs tremendously.
Instead of wasting precious time trying to sell an unlivable or undesirable home, you can invoke an exit strategy that you can use to make a massive difference in the amount of cash you walk away with after the closing. So read on as we explore what to do with your costly Hawaiian fixer-upper property.
FSBO
Another option would be for sale by the owner. You may consider doing this if you have a Hawaiian fixer-upper property that has become too costly to hold. Unless you want to face possible contingencies and deal with assisting the buyer in qualifying for a loan, usually taking a hit for the necessary repairs, you’ll need to sell as-is for cash. Listing as an FSBO doesn’t involve paying thousands in real estate commissions, leaving more profits for yourself. This option sounds attractive in theory, but unfortunately, it is rarely an ideal result that comes from selling on your own. You’ve taken a loss from the start. FSBO homes tend to sell for 26 percent less than those listed with an agent, and the percentage of FSBO home sales has slowly declined and now only accounts for 7 percent of market sales. You have to be extremely cautious of making the asking price too high or too low; as doing either of these things will ultimately result in your listing staying stagnant. Before making the call to jump into the market on your own, why not contact a local professional investor, like an expert from Oahu Home Buyers? We will detail the amount your home could sell for on the traditional market including inevitable unforeseen fees vs. the offer we make for your home.
Make Repairs
To be transparent, while time-consuming and costly, the most profitable way to market and sell a Hawaiian fixer-upper is by rolling up your sleeves, putting in the work, and presenting the home in a renewed state. Alternatively, you could instead do minimum updates and repair the most obvious damage. While television shows have made this undertaking appear as if it’s easy, it is imperative that you hire professionals to ensure you aren’t causing further damage. Before you begin, you should thoroughly understand the ARV, or after-repair value, to ensure the project is worth investing your time, energy, and finances in. By taking the step to reach out to a direct buyer like those at Oahu Home Buyers, you’ll understand each figure used and precisely how your direct buyer reached the offer. Then, you can make an educated decision about what works best for your circumstances.
Traditional Listing
Buyers often deem fixer-uppers a money pit and a waste of energy as they scroll through desirable and available listings in Hawaii. As for offers you do get, you can expect lowballs as the buyer will agree to take on all of the risks of unseen damage or structural issues as they dig deeper into the project. You will be required to complete a disclosure form, despite the as-is status of your listing, so it’s best to be upfront about the issues you’re aware of while pointing out all of the positives about the property. It’s best to provide full disclosure to steer clear of avoidable costly legal conflicts down the road. On the flip side, should you make the call to sell directly to a local buyer like those at Oahu Home Buyers, we’ll take on the burden of all the risks of the repairs. Unlike a traditional listing, you won’t pay commissions or closing costs. You will have a guaranteed closing date to plan your move on a date that is most convenient for you.
Oahu Home Buyers
The most convenient solution is selling it in as-is condition to Oahu Home Buyers for relief from the costs of your fixer-upper property, and an offer you’ll agree is fair. At Oahu Home Buyers, we do this because we are your neighbors here in Hawaii, and we take great pride in our work; we want you to feel good about working with Oahu Home Buyers long after leaving the closing table. Call Oahu Home Buyers at (808) 333-3677.