If someone's home is in need of repairs and they are trying to sell their house, there isn't a whole lot of options. Here's why: Most buyers are not going to pay cash for the property, they will be getting a mortgage loan. Mortgages are typically given to home buyers by traditional banks. Prior to the bank giving the loan to the buyer they will inspect the property to ensure that it is in good condition. If the property has a leaky roof, foundation issue, septic issue, out of date electrical or any other major issue they may choose to not lend their money to the buyer to buy that particular house. I've even seen minor wood rot around windows, doors, and fascia stop a bank from giving the buyers a loan.
The seller isn't completely stuck. If something comes up in the inspection they are typically given the option to make repairs. Unfortunately the items that come up can scare off or frustrate the buyer. Even if the bank agree's to fund the loan if some of the items are fixed the homeowner may walk do to the other minor repairs that need to be made. Most home buyers don't have the extra cash to make these types of repairs. After all they just made the largest investment of their life.
On the flip side, most sellers don't have the funds to make these repairs prior to selling. Or they may have the money to make the repairs but not the desire to go through the struggle of having to find a contractor to do the work, lay out the investment to make the repairs, or deal with the stress of having a project going on in their house without the certainty that after they make the repairs the house will actually sell. In some cases this can take months!
When meeting with a seller, our team gives the homeowner as many options as possible:
1. We make an offer that requires no repairs
2. We can introduce you to our preferred contractors to help you fix the property
3. We can provide you with a solid scope of work and a estimate of costs so that you understand what the costs associated with your upgrades/fixes are
4. If our offer doesn't make sense in your situation we can refer you to our exclusive realtors in your area.
Selling a property can be stressful. This is especially true if the property needs repairs. Get with a professional to help understand all your options.