How to sell a distressed home for the best price in Celebration, Florida

Whether you’re selling a distressed primary residence or investment property, the issue of getting the best price becomes a central topic. In this article I will try to give a quick synopsis over some options if you are a homeowner in Celebration, Florida.

Avoid getting an inspection

This option can work if your house is in a hot real estate market and you would like to avoid selling through a realtor. If you decide to sell to a real estate investor it is common for him or her to pay for the inspection cost. There are some sellers who automatically feel this should be their own burden because they are accustomed to the traditional selling model.

This is perfectly logical thinking because when selling through a realtor the house would go on the open market for a higher price. However, the downside is that the inspection cost would be just one of the drawdowns of your overall profit. Also, at the closing there will be other costs that will be absorbed into the sale which could lead to a disappointing outcome.

List with a competitive price

This advice may seem counterintuitive but when listing with a realtor set your asking price a little lower than similar houses in the area. This will prevent your house from becoming stale on the market. When a house doesn’t sell in the time frame of a month then buyers tend think that there’s something wrong with it. This is called the ‘Kiss of Death’ which is a hard label to recover from.

This has become a problem, especially for the upper-end homes on Artisan Avenue East and Camellia Street. As a seller of a distressed home you need to position your house at a MUCH bigger discount than you are comfortable with. A big reason is that the comp prices in your neighborhood are taken from houses that are market ready. Since yours is not you must be prepared to consider the costs of repairs for the buyer.

And since the typical retail buyer from the MLS is interested in a turnkey residence it’s unlikely that your house will draw much attention. If you change your strategy to include an investor like Fiesta Home Buyers as a buyer, you will probably be able to save money if you are not an experience contractor. An added bonus with working with an investor is the speed and predictability of the closing date.

Be honest about the needed repairs

Rainy days in Celebration, Florida are good for the foliage but not distressed houses. The leaks become obvious which could drive away a potential buyer. The rain can also show how water accumulates on the property. Showing a house on sunny days can give a better impression but you don’t want to stick the buyer with problems you knew about about. After all, he can nullify the sale and cause you a big financial headache if the leaks were not declared in the inspector’s report. This can easily happen if the inspection is done when there is no rain.

Furthermore, disclosing everything before the sales creates trust in potential buyers. You as the seller want to promote a sense of honesty which will mitigate their attempts to talk you down in price. It will be much easier to stand your ground on the asking price because you have set the psychology of creating a rock bottom price that’s non-negotiable.

Change the front door

If you only have money for minimal repairs you need to start with the most effective repairs first. According to an REI survey, the best bang for the buck is changing the front door. When you think about this it’s very intuitive because that’s one of the first things a buyer sees before entering your home. With this simple house hack you can increase the asking price of your house by many times what the installation will cost you.

Mow the grass

A much overlooked tool to command a higher asking price is to mow the grass before the real estate agent shows your home. This creates a feeling tone that woos a buyer into seeing a home’s higher intrinsic value. The fresh smell of nature gives a mindset of high expectation. This is especially effective in Celebration since properties are spacious.

Paint the walls

Even though your house is distressed you could substantially increase its value by painting the walls. This is a good move when working through a realtor but totally unnecessary when selling to an investor. It may seem silly to paint the walls if you know that the house may get a total makeover anyway, but don’t worry about this. As for the color, make sure it’s neutral like soft white or beige. No doubt your home was built in another era and you want to remove any vestige of age.

Take down family pictures

If you choose to work with a realtor you need to create a welcoming ambience but not too personal. When potential buyers take part in showings, they want to imagine how their family can live in your home. That’s why you need to take down family pictures and every other picture that would shut down their imagination. If a buyer can personalize himself into your home then he’s more willing to buy it with no concessions.

Concessions are a way for a buyer to pay less due to your home being satisfactory but not good or great. For example, a half-hearted buyer will ask for a $2,000 discount at the closing because there won’t be any appliances. Or he may ask for an even steeper discount if the electrical system is dated. Avoid this kind of bartering buy allowing the buyer to personalize your home to his own life.

Sell to an investor

This option has been discussed a little in this article but it really cannot be overstated. By letting an investor like Fiesta Home Buyers do the repairs instead of taking them on yourself, you can save big. Why? Because they have relationships with contractors and are very good a planning. This can minimalize the rehab cost to half of what you might pay. A seller can still stubbornly do major renovations instead but this takes away the element of time, which is also money.