3 Tips for Skillfully Selling Property in Bad Condition

  • By Hadar 5th Jun, 2021
    Selling Property in Bad Condition

    In any market, it is difficult to offload a commodity that is in bad shape. That applies even more to real estate deals. Generally, when we mention ‘property’ and ‘bad condition’, we can consider multiple shortcomings with the asset by a thumb rule, which makes it further difficult to offload properties in bad condition. Therefore, for selling property in bad condition, we must gauge the depth of repairs require and suss out the best sale option.

    What kind of property qualifies as badly conditioned?

    There are varying degrees to the demerits of its condition. Professionals categorize these challenges as:

    Fairly usable and repairable

    Faucets and light fixtures that work but have lost their sheen, walls in need of fresh coats of paint, external weathering, floor staining, etc. fit this category. Selling property in bad condition is easier if it only exhibits such minor faults.

    Visibly in need of repairs

    Over prolonged use, the HVAC, or the electrical wiring may become faulty; even the fixtures may register faults. Poor plumbing also tells us about the deteriorating condition of the plumbing material, hardware, and water supply.  a visible pothole marring the driveway.

    Uninhabitable without repair and maintenance

    Some homes that are in visibly poor condition can have dampened walls, termites, or mold issues. Problems in the foundation, chimney, or roof are also a major red flag. Lead in the plumbing can also result in an unhealthy water supply.

    Art of selling a property in bad condition in New Zealand

    A lot of homeowners or first-time real estate agents shy away from these because of the work involved. However, offloading homes in disrepair is easier than you think:

    Sell as-is to an investor

    The NZ property market is teeming with investors adroit enough to buy homes in dilapidated conditions; repair them for a low overhead, and, flip them at a higher price. Selling as-is usually has no closing costs and no brokerage cost if you can find an investor/buyer. Some investors even go as far as to cover outstanding tax liens. These buyers usually pay in cash which means quick offloading for you. But, beware of low-ballers.

    For sale by owner

    Try selling a property in bad condition with free online listings. Some investors quickly opt for properties with noticeable faults that aren’t necessarily deal-breakers. Properties in these categories are quite habitable and only need superficial repairs. However, the onus of ascertaining a just price, listing the asset, negotiating with the investor is on you.

    Selling through an agent

    It is best to opt for an intermediary agent when the property has undergone major wear and tear. The more pronounced the issues- the more difficult the sale for an inexperienced homeowner. However, it can still fetch a fair price when you have a professional broker at hand. Brokers even help outsource repairs to economically-priced contractors, to increment your property value.

    Selling a property in bad condition in New Zealand is quite a feat when you are dealing with knowledgeable real estate investors and buyers. But, it gets easier with these pointers in mind.

    Also read: Tips for Selling a House in Bad Condition




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