Selling a House That Needs Repairs in the Twin Cities

Is your home jam-packed with projects that need to get done?

We know what that's like.

The floor needs repairs, the windows need replacing, there's water damage in the bathroom, the roof is getting old, and every year the list gets a little longer. When you fall behind on projects, things can get overwhelming. Where do you even start? And who has the money to tackle everything at once?

Don't get discouraged. You'd be surprised how often this happens. We've helped a lot of homeowners in the Twin Cities who fell behind on their home's maintenance for one reason or another. Some had health problems, some just didn't have the budget, and some only found the damage once it was too late.

Should you fix it before you sell?

If you want to sell a run-down house, one of the last things you probably want to do is spend a bunch of money fixing it up. And it doesn't always make sense to!

There's no guarantee you'll get that money back when you sell. If the repairs are cosmetic, you might fix it up in your style and turn off a buyer with different taste. All that work and money could actually be what makes someone pass on your house.

Don't make repairs until you're sure they'll be worth it.

How much will it cost to fix?

Don't try to price it all out yourself. Call a few contractors and get estimates. Some sellers even have a home inspection done before they list, so they know exactly what condition the house is in before the buyer's inspector finds it. That gives you more negotiating power, and it shows buyers you aren't trying to hide anything.

Also remember that if you're in Minneapolis, St. Paul or one of the other metro cities with a Truth in Sale of Housing inspection, there will be a report on the house's condition before you can list it anyway.

How bad is it, really?

Some repairs scare buyers away more than others.

Cosmetic stuff (old carpet, dated kitchen, paint) is the easiest. Lots of buyers can see past it.

The big stuff is where buyers get nervous: the roof, the furnace, electrical, plumbing, water in the basement, and foundation problems. Take foundations, for example. A small crack is often just normal settling. But signs like these usually mean a bigger problem:

• Gaps in the foundation walls
• Doors or windows that stick or don't line up anymore
• Large cracks (more than about 1/4 inch)
• A leaning chimney
• Diagonal cracks in brick or block walls

If a buyer is using a bank loan, problems like these can also kill the deal at the appraisal or inspection, since a lot of lenders won't finance a house that needs major work. If you want the biggest pool of buyers, the house at least needs to be livable while someone fixes it up.

Your selling options

You've basically got three options:

1. Fix it and list it. Make sure you know how much you'll be paying out of pocket. On top of the repairs, there's cleaning, marketing and the agent's commission, plus the months of holding costs while you fix it and wait for a buyer.
2. List it as-is. You can, but price it realistically. Don't expect retail prices for a house that needs work. And be ready for lowball offers and for buyers backing out after the inspection.
3. Sell it directly to a buyer who fixes houses, like Trademark Properties.

Tips if you list it as-is

• Disclose everything. Be upfront about what's wrong. Minnesota requires sellers to disclose known problems, and hiding things can lead to a lawsuit down the road.
• Make it as presentable as you can. Clean up and fix the small cosmetic stuff.
• Show the potential. Help buyers picture what it could be.
• Know your number. Factor in the repairs and be realistic about what the house is worth in the condition it's in.
• Don't look desperate. You don't have to jump at the first lowball offer.

Selling directly to Trademark Properties

The great thing about selling to a real estate investor is that we don't care if the house needs repairs. We're not going to live in it. Fixing houses up is what we do, and we can usually do it for less than a homeowner could.

• We buy the house as-is. No repairs, not even cleaning.
• There's usually no bank, so no appraisal or financing to fall through.
• No commissions, and we pay the closing costs.
• You pick the closing date.

It often brings homeowners a lot of relief to sell a house that's falling apart and move somewhere that actually feels like home again. Home should be somewhere you feel safe and comfortable... not somewhere that nags you with a laundry list of repairs.

Have a house that needs repairs in the Twin Cities? Give us a call at Call us or fill out the form to get your fair as-is cash offer. There's never any obligation!