Q We want to sell our older home and buy a townhouse or condominium. Frankly, our house is a bit rundown and may be hard to sell. (Don’t tell us to fix it up first, that’s just not our style.) What should we expect from a real estate agent to sell this house?
L.K., Lynnwood
A First of all, it depends on what you mean by “a bit rundown.”
You don’t have to fix up a home to sell it, but the condition of the home will play a significant role in the amount of money you can expect to receive for it.
If you want to sell your home quickly and for a good price, I think you should at least clean it up and make cosmetic repairs. That doesn’t mean you have to do the work yourself. I’m with you – painting and home repairs are not my idea of good time, either.
Time really is money, and I long ago decided that I’d rather spend my money than my time on such chores. It certainly is not the least expensive way to go, but if it gets the job done, that’s all that matters.
You’ve already admitted that the house will be hard to sell because it’s rundown, and most real estate agents will tell you the same thing.
There is a market out there for fixers and handyman specials, but even a good agent can’t work miracles. Sellers often hope that an energetic young couple will come along and see the potential value that can be added to their home through their sweat equity, but the reality is that most home buyers simply do not have that much vision.
As far as the typical home buyer is concerned, “What you see is what you get.” Instead of an exciting opportunity for appreciation, they see a pile of junk.
So that means that the main buyers of fixers are investors and professional contractors who can see past today’s blemishes to visualize the potential profit in the future. But because they are buying strictly for investment return and have no emotional attachment to the property, they will want to buy for a very low price to ensure enough profit margin to make money after they do the repair work.
So what should you do? A good real estate agent should be able to give you a list of suggested improvements that will make your home show and sell better.
Stick to relatively inexpensive cosmetic improvements such as paint and carpet. The house will look and smell clean, and the increase in market value should more than cover the cost.
If you insist on selling your home as is, accept the fact that you will be selling for a lower price than you would get if the home were fixed up, and market the home accordingly.
Advertise it as a fix-me-up special or something like that. Be prepared to deal with investors and savvy home buyers who will try to beat you down on your asking price. Try to find a real estate agent who has experience in marketing these kinds of properties. He or she should have some ideas on how to price the home, where to advertise, etc.
Again, let me emphasize that no matter how good the agent is, he or she will not be able to get a top dollar price for a rundown home. So think it over carefully before you decide to market your home in that condition.
Mail questions to Steve Tytler, The Herald, P.O. Box 930, Everett, WA 98206. Fax questions to Tytler at 425-339-3435, or e-mail him at economy@heraldnet.com.
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