In today’s market, renovated move-in
ready properties sell at a premium.
But what if you can’t or won’t
fix up your house? A property that is dated, unrenovated or
unloved, can linger on the market for months, pushing the price
Fixer-uppers may have been appealing a decade ago, but today
they leave buyers cold, said McKenzie Ryan, an agent with Compass
in New York City.
“Ten years ago, most people wanted to add some value and put
their own fingerprint on it,” she said. “Now it has been such a
shift, particularly with millennial buyers — they want a finished
product. They don’t want to put in the sweat equity.”
For homeowners without the money or time for a renovation, new
options can help sell a property with no out-of-pocket costs.
Pre-sale renovations with no upfront cost
Some real estate agencies, like Compass,
Coldwell Banker and Keller Williams, are
offering renovation services with no upfront costs to their
clients. The firms then recoup the cost of the renovation from the
price of the home after it sells.
Ryan was hired to sell a two-bedroom, two-bath condo on
Manhattan’s Upper West Side after the owners were unable to sell
it with another agent at a list price of $1.3 million.
The feedback the sellers received was that prospective buyers
would be more interested in the home if it were updated.
So, together with the owners, Ryan is fixing it up. Her
company’s service, Compass Concierge, fronts
the cost of the home improvements. The condo will be painted, the
floors will be sanded and stained, kitchen cabinets will be painted
and receive new hardware, and a bathroom will get a new vanity,
flooring and a light fixture. Once all the renovations are
complete, the condo will go back on the market for $1.395 million
— a price that will more than make up for the cost of
“When I’ve done this with properties, my listings have sold
quicker and at a higher price compared to similar properties in the
building,” Ryan said.
Sell quickly with no showings
Many investors — called instant buyers or ibuyers —
advertise quick cash offers for “ugly houses,” often at
below-market prices. They flip the properties for a profit, saving
sellers the hassle of showings and costly renovations. Even real
estate firms, like Zillow
and Redfin, have ibuyer
divisions that will make a cash offer on a home — often sight
unseen — based on the specific location and attributes of the
Sundae, a real estate company
based in southern California, buys homes with a quick cash offer,
and then renovates and flips them. After a representative does an
in-person evaluation of a home that is then analyzed by a
construction cost expert and a valuation expert, Sundae makes the
seller a cash offer.
Homeowners can sell as-is, with no fees, repairs, cleanups or
showings and also get up to a $10,000 cash advance from the sale
upfront to help with the move, if needed. Some closings have
happened in as little as 10 days.
“When people come to us we evaluate three things: Do you have
the money for renovations? Do you have the time? Do you have the
know-how?” said Josh Stech, CEO at Sundae. “If the home needs a
little bit too much work, selling to Sundae may be a good
And Stech said, people sometimes need a hand to hold, since a
quick sale is often brought on by an unplanned life event.
“Often people are in duress,” Stech said. “They are going
through a transaction that is unfamiliar and high stakes and
typically there is a relocation, divorce or death involved.”
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Selling the home with no showings — especially for people with
serious pet issues, a history of hoarding or estate sales in which
family members may not be nearby — can be the most appealing part
for some sellers.
For many people, he said, it matters what happens to the house
even as they walk away.
“They want a family to live there,” said Stech. “They want
to see that the house has the kids and dog running around the
backyard like they remember from 30 years ago. They just can’t do
the work to get it there.”
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Source: FS – All – Real Estate News 1
How to sell your ‘ugly’ house when no one is biting