4 Tips For Selling a Fixer-Upper Home

Selling any home can be a tricky business, but fixer-upper homes level up that challenge. A “fixer-upper” is any home that needs updating and renovating before it can be lived in comfortably. Because of the work involved, fixer-upper homes appeal to fewer buyers. In today’s market, many prefer to purchase a move-in ready home. However, some buyers love having the opportunity to put their mark on a home and make it fit their unique style and needs. Here is what homeowners need to know about selling a fixer-upper home to attract those buyers.

Lower the Price

Fixer-uppers often need much work done as soon as possible to make the home livable. All those renovation costs add up quickly. That means buyers will have a lower budget for the actual home purchase because they’re saving funds for the renovation work. Let’s say the home needs a new roof, kitchen, and cosmetic updates. Where the homeowner might see a home valued at $350,000, the buyer sees:

• Home Value: $350,000
• New Roof: -$15,000
• New Kitchen: -$10,000
• Updated Painting: -$2,000

Keeping this in mind, homeowners should lower the price of their fixer-upper home to attract buyers and offset the expenses the buyers will have later on. After all, no one will buy a fixer-upper for the same price that they can get a similar home without any work. This is especially true if you know the home needs structural updates that can be estimated ahead of time–like a new roof, foundation repair, new HVAC system, etc.

Hire an Experienced Agent

Real estate agents provide many advantages to sellers, but they are especially helpful when it comes to a tough sell like a fixer-upper home. Agents have many resources available to them. One such resource is the Multiple Listing Service, a database of homes for sale that can only be accessed by agents. They can communicate with other real estate agents and try to help arrange deals between their clients. This helps agents locate buyers who are looking for fixer-upper homes.

Some agents specialize in marketing fixer-upper homes. They can be a resource for helping find appraisers and property inspectors who note the work that needs to be done to bring the home’s value in line with similar properties. This helps with more accurate pricing and lets buyers know what they’re in for when buying the home. Even those willing to take on fixer-uppers don’t always like surprises, like hidden termite damage in the walls.

Be Honest About Flaws

It’s no secret that a fixer-upper home will have problems. Whether it’s a leaky roof or windows that won’t open, buyers actively looking for a fixer-upper are prepared to hear about a home’s disadvantages. It can be tempting to try hiding a home’s flaws to make it more appealing to buyers, but this is a bad idea. Lying about a home’s condition will get the seller into trouble later because the home inspection will bring attention to anything the buyers can’t detect on their own. This will result in distrust between the buyer and seller. It’s best to be honest about flaws from the beginning to create a good relationship between both parties and help the buyer craft their plan for the home.

Highlight the Home’s Best Features

No matter how poor a home’s condition, there are always good features that the seller can and should share. Again, this is where a real estate agent and their marketing expertise come into play.

Is the foundation solid? Does it have a new roof? Is the home considered historic? These are all assets homeowners can highlight in their home listing to help attract buyers. It can be easy to focus on the negative when it comes to a fixer-upper home, but sellers shouldn’t forget about the good features. Depending on the home, they may seem challenging to find. Every home has something good going for it that shouldn’t be forgotten.

Fixer-upper homes can be more challenging to sell, but that doesn’t mean it’s impossible. These tips can help homeowners market their homes and find buyers up to the bright side of a fixer-upper.

Updated February 2024