Guide to Selling a House in Poor Condition (2021)

Houses fall into disrepair for many reasons. Perhaps an elderly resident cannot take proper care of the maintenance tasks, or the house has been vacant for a period of time and was inherited. No matter the reason, selling a home that is in poor shape can be a challenge.

When you have a home that isn’t in great condition, you need to take a different sales approach. You are not likely to get a lot of offers in the traditional sense; you may get a few from some hearty fixer-uppers that want a challenge, but that’s about it. You will need to target a completely different audience than you would for a normal house sale.

If you have inherited a home that is dilapidated, you don’t want to sink too much money into the property if you are planning to sell. Let’s take a closer look at how you can sell your home that is in poor condition. 

How to Price

When pricing a house that is in poor condition, you will need to consider the amount of expected work that the property requires. Start by looking at comparable properties in any shape in the area. Take the average price and deduct a fair amount for what it will cost the new owners to bring the house back up in condition. You may want to list it at a slightly inflated price and expect to take lower offers from interested buyers. 

Target Audience

It’s unlikely that you will get a lot of interest from traditional buyers on a house that is in disrepair. There may be a few lowball offers from DIY buyers that are looking for a cheap price tag and a challenge. Generally, you will need to target the trade end of the market. There are always developers or property investors in your area that are looking to pay cash for houses in any condition. One option is to list your house for auction and let the developers bid for it.

Highlight the Positives

You may have a home that is in disrepair but is on a prime piece of property, or your home may be of historical significance. No matter the circumstance, these are the factors on which you should focus. It’s to your advantage to let potential buyers know what good things the property has to offer and get the attention away from the needed repairs. 

Be Honest

Any interested buyers are likely to request an inspection. This means that they will eventually find out about any issues with the house, so it is better to be honest from the start. It is the law that sellers are obligated to disclose the work needed or any structural issues with the home. 

If you own a property that is in poor condition, your sale process may be a challenge. Follow these tips to help you navigate the market and close a sale quickly.