If you are looking to sell a distressed property, it can be a daunting task. Distressed properties are usually in need of extensive repairs, can have legal or title issues, and can be financially overwhelming for the new property owner. However, there are several ways to successfully sell this type of property if you know what to do. Here are tips on how to sell a distressed property.
Contact the right people
Reaching out to local professionals with expertise in real estate investing will be hugely beneficial when it comes to selling a distressed property. A real estate investor has intimate knowledge about how distressed properties work, and can guide you on the correct steps you’ll need to take. They’ll be able to offer sound advice, link you up with contractors for needed repairs, and ensure everything runs as smoothly as possible. It’s best to reach out to local real estate investors, wholesalers, contractors, and real estate agents in order to make the most informed decisions and better navigate the distressed property market.
Inspect the property
A thorough inspection is essential to determine what repairs are necessary to make the property attractive to potential buyers. The inspection should include all structural features, such as walls, windows, roofs, chimneys, porches, and foundations. It should also include electrical and plumbing systems, such as outlets, lighting, and fixtures, as well as the age and condition of the HVAC system, if applicable. Additionally, the inspector should look for pest infestations, water damage, or signs of structural or environmental damage. Furthermore, an inspector will also be able to identify any potential title issues that may delay or prevent the sale. Finally, a thorough inspection will provide potential buyers with the information required to make an informed decision about the purchase.
Price the property accordingly
It is important to price the property accordingly to maximize the chances of a successful sale. Many buyers interested in distressed property will be attempting to negotiate a lower price, so it is important to factor this into your pricing strategy. Accordingly, the property should be priced at least 15-20% below the market value for similar properties in good condition. This allows room for buyers to make adjustments in their offer, while protecting the seller from leaving money on the table. Furthermore, a competitively priced distressed property encourages buyers to make offers quickly, reducing the total time the property is on the market.
Be willing to negotiate
When planning to sell a distressed property, it is important to be prepared for negotiating offers. Buyers are likely to attempt to negotiate a deal that is more beneficial for them, instead of making a full-price offer. Be ready to negotiate important aspects such as closing costs, down payments, and financing, in order to be able to close the sale quickly. Being willing to negotiate is key to selling a distressed property in an efficient way, as it can be the difference between the property getting snatched up within days, or languishing on the market for months. Be open to compromise when negotiating, as this could in-turn result in a sale much sooner.
Selling a distressed property can be a daunting task. But with the right approach, it can be successfully accomplished. By utilizing the four tips outlined above, it will be much easier to sell a distressed property. Contact local professionals, inspect the property, price it accordingly, and be prepared to negotiate. Following this advice will help you to successfully sell a distressed property and move forward.
No matter which you choose, make educated decisions by taking the time to understand all of your options. Would you like to learn more about how we can help you sell a distressed property in Bell Glades? Just call Down South Florida Home Buyers today at (239) 766-6225 or send us a message any time!