Selling a House That Needs Major Repairs
Roof leaks, foundation problems and old systems can make a house feel impossible to sell. You have more than one route.
Fix, or sell as it is?
Repairs can raise your sale price, but they do not always pay for themselves. Get written estimates, then ask a local agent what the house could sell for before and after the work.
Things that often make buyers hesitate
- Roof, foundation or structural damage
- Water, mold or fire damage
- Old electrical, plumbing or heating systems
- Unfinished renovations
- Trash, hoarding or years of deferred maintenance
Some buyers may not be able to finance it
Lenders can have condition requirements, so a house in poor shape may attract fewer financed buyers. Cash buyers do not rely on a lender, though their offers reflect the cost of repairs.
How our offers think about repairs
We look at what the house could be worth once repaired, what the work could cost, our costs to buy and resell, and a margin for risk. That means our offer is lower than the fully repaired value. We can walk you through how we got to the number.
This page is general information, not legal, tax or financial advice. Rules vary by state and city, so please check with a qualified professional about your situation.
Repair or Sell As-Is? Run the Numbers
Before you spend money, write down three numbers: what the house could sell for after repairs, what the repairs will really cost, and how long the work will take. Then add the costs of carrying the house during the work, like taxes, insurance, utilities and any mortgage payments.
- Get real quotes. Online estimates are often far too low for roofs, foundations and sewer lines.
- Add a cushion. Older houses often hide more problems once walls and floors are opened. Many investors add 10 to 20 percent.
- Count the selling costs. Agent commissions, closing costs and price reductions if the house sits.
- Compare. If the after-repair price minus all of those costs is well above a cash offer, repairing and listing may be worth it. If it is close, the as-is sale saves you the risk and the work.
Repairs That Scare Off Regular Buyers
Some problems make it hard for a buyer to get a loan or insurance at all. These include roofs at the end of their life, foundation movement, electrical panels insurers will not cover, failed sewer lines, mold and missing permits. We price these into our offer and handle them after closing.
Questions About Selling a House That Needs Work
Do I need to disclose problems?
Yes, most states require sellers to disclose known material defects, even in an as-is sale. Being upfront also helps us make a firm offer.
Will you buy a house that cannot pass inspection?
Yes. We buy houses in any condition, including ones that would not qualify for a traditional mortgage.
Should I fix small things first?
Usually not. Small fixes rarely change our offer, so save your money.