Selling a house that needs work can add strain to an already stressful process.
It’s a different undertaking than a traditional home sale.
You’ll need to carefully weigh your budget, timeline, and how buyers will perceive the property’s condition.
Deciding which repairs to tackle — or if it’s better to skip them altogether — can significantly impact both your sales timeline and final price.
The good news?
Plenty of buyers are open to purchasing homes that need a little TLC.
You just need to know how to make smart repair decisions and effectively showcase your property.
Here’s everything to consider when selling a house that needs repairs.
Who will buy a home in need of repairs?
Some buyers shy away from homes with repair needs.
So it’s important to understand who is willing to take on a property with maintenance issues.
Fortunately, there are several types of buyers to consider.
Understanding their mindset will help you determine which buyer to target based on your selling situation –– and how to prepare your property to meet their expectations.
Cash buyers
Many non-financed buyers are willing to take on properties that need repairs if the price is right.
Some avoid competition by focusing on finding bargains before the home is listed on the multiple listing service (MLS).
Others use their all-cash status as leverage to negotiate a lower price.
Selling to a cash buyer can be beneficial but comes with one key drawback.
Pro
- Quicker, smoother sale: Removing the mortgage approval process streamlines the transaction by eliminating many common hurdles. Cash buyers also often make non-contingent offers, which significantly reduces the risk of the deal falling through.
Con
- Lower sale price: A buyer purchasing a home with cash is usually a bargain hunter, so you’re unlikely to get the best possible price. They use their cash as leverage, which can put you at a disadvantage in negotiations.
Real estate investors
Investors see home repairs as an opportunity to add value to their real estate investments.
They actively search for properties in need of work, both on and off the market.
Their primary goal?
To either flip the property for a profit or hold on to it as a long-term rental.
Keep these factors in mind when selling to a real estate investor:
Pro
- Less risk of the sale falling through: Most investors are comfortable buying properties that need work and often waive the inspection contingency, reducing the risk of the deal falling through.
Con
- Risk of unfair offers: Many investors exploit vulnerable sellers with lowball offers. They often leverage their willingness to handle repairs as a way to justify offering significantly below market value.
iBuyers
iBuyers are companies that pay cash for homes that meet specific criteria.
Like investors, they’re looking for opportunities to make a profit.
But iBuyers typically shy away from houses that need major repairs.
Instead, they target properties that require just enough work for a quick flip.
This can be a good option if your house only needs cosmetic repairs or other minor updates (and you don’t need the best price).
But it’s important to watch out for a potential bait-and-switch tactic.
Pro
- Convenience: iBuyers handle much of the sale process, including inspections and paperwork. This eliminates the need for showings, open houses, or marketing efforts, drastically reducing the hassle of selling a property with repair issues.
Con
- Repair deductions: iBuyers often conduct inspections after making an initial offer and frequently reduce their price significantly based on the results. This leaves many sellers with a tough decision: accept the lower price or start over with a new buyer and delay the sale.
Traditional home buyers
Traditional home buyers represent the largest group of potential buyers for properties that need work.
Some are first-time home buyers hoping to save money by tackling repairs themselves.
Others are adventurous buyers eager to put their personal touch on a home and make it uniquely their own.
In both cases, these buyers typically finance the purchase and are willing to take on repairs and improvements after closing.
Pro
- Higher sales price: Selling a home to a traditional buyer typically results in a higher price due to greater competition on the open market. Buyers using financing often feel less constrained in their offers than those paying in cash.
Con
- Longer sales process: A real estate transaction involving a lender and potential contingencies often takes longer to close than a sale to an investor or cash buyer.
How to sell a house that needs repairs
You can sell a house that needs work — it just requires a thoughtful approach.
The key to attracting the right buyers and closing the deal?
Making smart decisions about improvements, pricing, and negotiation.
Here are the most important steps to take when selling a home that needs repairs.
1. Get a pre-listing inspection
Don’t consider making repairs to your home until you get a pre-listing inspection.
Here’s why…
A pre-listing inspection gives you a complete understanding of your home’s condition and highlights which issues are most important to address.
This can save you time and money by helping you focus on the right areas.
For example…
You might learn that addressing water in the crawl space you didn’t know about is far more critical than cosmetic updates you had planned.
And if you decide not to make any repairs?
The inspection report will provide prospective buyers with valuable information.
This is a significant advantage because it greatly reduces the likelihood of them backing out after you accept their offer.
2. Hire the best-qualified agent
A home that needs attention will sell for the best price and terms with an experienced real estate agent who has the right qualifications.
Why?
A property in need of work has a smaller pool of potential buyers –– but the right agent knows how to find them.
More importantly, they have the expertise and integrity to negotiate repairs and terms with your best interests in mind.
The right agent can also advise you on which repairs are worth making — or if you should skip them altogether.
The key is picking the right Realtor –– one with a reputable track record and the expertise to handle the unique challenges of selling a home that needs repairs.
Having this clarity and confidence will help you make crucial decisions at every step of the process.
3. Decide if you will make repairs
The biggest decision before listing a house that needs work is whether to make repairs or sell it as-is.
Each option has its advantages and drawbacks, so it’s important to weigh them carefully.
Sell as-is
Selling your home as-is means skipping all repairs and leaving the work to the buyer.
Here’s what to consider:
Pros:
- Save time: Avoid weeks or months of prep by ignoring repairs.
- Reduce costs: Cut out upfront expenses for maintenance or upgrades.
- Simplify negotiations: Being up front about the home’s condition reduces back-and-forth over repairs.
Cons:
- Smaller buyer pool: Fewer buyers are willing to take on significant repairs, which usually means fewer offers.
- Lower sale price: Buyers will discount their offers to account for repair costs.
- Potential delays: Major issues could create hurdles with lenders or insurers, slowing or halting the selling process.
Make strategic repairs
Making key repairs can boost your home’s appeal and value.
But it’s important to focus on what will have the biggest impact.
Prioritize fixes based on your goals, budget, and timeline.
Pros:
- Attract more buyers: A well-maintained home appeals to a broader audience.
- Increase sale price: Fewer needed repairs can boost your home’s value and asking price.
- Easier transaction: Buyers are more likely to make stronger offers on a move-in-ready home.
Cons:
- Upfront costs: Repairs require time and money, which may strain your budget or timeline.
- Risk misaligned priorities: Your chosen updates might not matter to buyers, who may want to customize the home anyway.
- Uncertain ROI: Not all upgrades yield a significant price increase, especially in a seller’s market.
4. Choose which fixes you’ll make
If you decide to make any repairs, then the next question is obvious:
How do you know what not to repair when selling your house?
Your agent can guide you on which fixes will offer the best return on your time and money.
In general, focus on addressing necessary repairs in key areas like the following:
- HVAC system: Buyers prioritize heating and cooling systems for comfort and energy efficiency. A faulty HVAC can be a dealbreaker, so ensure the system is operational, clean, and properly serviced. Repair or replace outdated units if they don’t meet safety standards.
- Roof: Selling a house with a damaged roof can be difficult, as it raises concerns about leaks, mold, and structural issues. Replace missing shingles, patch leaks, and fix damaged flashing. Consider partial or full replacement (or a corresponding buyer credit) if the roof is nearing the end of its life.
- Plumbing problems: Leaks, clogs, or outdated pipes can deter buyers and lead to inspection failures. Repair leaks, replace corroded pipes, fix running toilets, and ensure proper water pressure.
- Electrical system: Faulty or old wiring can be a safety hazard and may not pass inspection. Repair exposed wires, replace outdated panels, and ensure all outlets and switches function. Add GFCI outlets in kitchens and bathrooms to meet safety codes.
- Cosmetic repairs: Aesthetic flaws can give the impression of neglect. Consider simple fixes like patching holes in walls, touch-up painting, refinishing or replacing scratched flooring, refreshing caulking around sinks and tubs, and fixing sticking doors.
5. Prepare your home for sale
Deciding on repairs and upgrades is just one part of preparing to sell a house that needs work.
There are other ways to present your home in its best possible light.
The following steps will help, whether you choose to make major repairs, minor updates, or sell as-is.
Declutter
Offering buyers a clean and clutter-free environment can help shift their focus away from any repairs your house needs.
It helps them easily imagine themselves in your home.
And that means less mental effort when considering if it’s a good fit.
So be sure all surfaces are clean and free of unnecessary clutter.
Replace personalized photos and decor with items that are more universally appealing.
Tidy up closet spaces.
Clear out some furniture to open up the space and make your house more inviting.
And generally pare down excess items that make the living space feel crowded or disorganized.
Stage your home
Staging takes decluttering and personalization to the next level.
It allows you to completely customize the layout and feel of your home to attract the right buyers.
Even better?
It helps you highlight the home’s strengths and draw attention away from its weaknesses.
For example, you might be selling an older home with noticeable flaws.
A buyer could overlook those flaws if the open living space aligns with their dream layout.
Professional stagers know how to accentuate the best aspects of any property.
But that’s much harder to do with all your furniture and possessions in the space.
So, even if you’re not moving out before listing, consider storing some of your items to let a stager work their magic.
Get professional photos
Photos are your best chance to make a strong first impression.
They’re often the main reason buyers decide to see your home in person.
Professional photography can also downplay the impact of required fixes mentioned in disclosures.
A skilled photographer knows how to highlight your home’s best features and present it in the most appealing way.
So don’t rely on quick phone snapshots.
Make sure you or your Realtor hire a professional to make your listing stand out.
6. Factor repairs into your list price
Choosing a strategic list price is always important when putting your home on the market.
But it’s especially critical when there are potential repairs involved.
Why?
You have to think like a buyer — and they will do a little math when making their offer.
Are they going to have to buy a new HVAC system in the next few years? That might be an automatic price reduction.
Will they be on the hook for a new roof? You can bet that will factor into their offer.
The easiest way to figure out how to price a house that needs work is to have your agent run a comparative market analysis (CMA).
They can use their expertise to compare your property to similar recent sales, then decide how much to discount for the repairs buyers will consider essential.
That way, you can get closer to a price that’s competitive for your target buyers and makes sense for your area.
Plus, a CMA can help you weigh the value of repairs you have already made.
For instance, say you spent $10,000 on replacing appliances and fixing termite damage.
Your agent can help you determine what those partial repairs are worth to a buyer and factor that into your pricing strategy.
7. Be strategic with your marketing
The right marketing approach will ensure your home stands out to the right buyers — regardless of what repairs you have or haven’t done.
Here are a few tips for successfully promoting a property that needs attention:
- Be honest about the condition: Don’t hide major issues. Federal law mandates that you disclose features like lead paint, and all states require you to disclose known material defects that could affect the home’s value or safety, such as radon or asbestos.
- Disclose repair estimates: Go the extra mile and provide buyers with quotes for any major repairs you opt not to do. That way they can see exactly what a fix would cost — and how you factored repairs into your asking price.
- Highlight the positives in your listing description: Don’t discourage buyers or give them leverage by dwelling on the negative aspects of the property. Focus on the home’s potential, like the opportunity to customize or increase value after repairs. Emphasize unique features such as location, layout, size, or architectural charm.
The point?
Be transparent, but highlight why the house is worth the minor effort needed to complete repairs or renovations.
8. Negotiate carefully
Negotiations are a delicate part of selling a home that needs repairs.
Be prepared for potential repair requests or price reductions.
This is true whether you’re selling a home with an old fuse box and faulty wiring or dealing with minor cosmetic issues.
Being transparent about problems up front and pricing your home strategically can minimize these challenges.
But buyers may still get cold feet when their inspection report highlights the same issues you disclosed.
An experienced listing agent can help you navigate these situations carefully.
Sometimes, you can stand firm by pointing out that a specific repair is already reflected in the sale price.
Other times, you may need to consider inspection-related price reductions or concessions to keep the deal moving forward.
Just don’t get stuck on small details.
It’s probably not worth haggling over a handrail installation if the buyer is already taking on the majority of the repairs.
3 tips for selling a house that needs repairs
Keep these three key things in mind as you attract buyers for a house that needs repairs.
Don’t immediately offer buyer concessions
Some sellers offer repair credits or incentives up front (e.g. home warranty) when their home needs repairs.
This is rarely a good idea.
Because many buyers will still make competitive offers without expecting upfront discounts.
Holding off gives you leverage during negotiations to better assess the buyer’s willingness to pay.
And you would never know that if you offered a seller concession from the get-go.
So use concessions as a strategic tool to close the deal rather than giving them away too soon.
Don’t just focus on price: consider inspection contingencies
Many sellers get tunnel vision when reviewing an offer on their home — they focus on price alone.
But it’s just as important to consider a buyer’s inspection contingency, especially when selling an older home that needs work.
Why?
Because inspection contingencies allow buyers to renegotiate or back out of the sale.
Weigh the trade-off between the certainty of an offer with no inspection contingency and the risks posed by repair demands or a collapsed deal.
An offer contingent upon inspections is common.
But make sure you factor in other terms of a contingent offer.
Like the buyer’s ability to close quickly, their financing strength, and the likelihood of a frictionless transaction.
Because a higher-priced offer with an inspection contingency isn’t always better than a lower-priced, non-contingent offer.
Beware of agent and investor tactics
A lot of investors and iBuyers partner with real estate agents to find below-market deals.
The investor gets a cheap property…
The agent earns triple commissions: two for representing both the seller and the investor, and another for representing the investor when they resell the property…
And the seller?
They lose out on a better return.
Here’s how…
The agent claims the home is only marketable to cash buyers.
Or they exaggerate the repairs needed to sell to a traditional buyer.
The fictional proposal ignites the homeowner’s fear of not being able to sell their home.
And convinces them to accept an offer well below market value.
How can you protect yourself?
Research your home’s potential value…
Consider listing your house on the market…
And partner with a real estate agent who has a reputable track record.
A reputable agent will advocate for your best interests –– and legitimate investors will provide fair terms based on the amount of work needed.
Find a trusted agent to sell a house that needs work
The best way to sell a house that needs work depends on factors like your budget, your timeline, and buyer demand.
No matter your situation, partnering with the right real estate agent who understands your needs can make all the difference.
The right agent will:
- Help you determine which updates are worth making.
- Know how to market a home that needs repairs effectively.
- Bring invaluable expertise to the negotiation table.
SoldNest simplifies the process of finding the right agent so you can have confidence that you’re selling your home with someone who’s truly on your side.
Our Realtor vetting process connects you with a trustworthy agent who has the experience and expertise to sell your home — even if it needs a little extra work.
