Selling any property can prove to be challenging, but selling a distressed property is on another level of uncertainty. How do you sell a distressed home? Would it be better to do some repairs or try to sell it as-is?
If your home needs several repairs, how do you even choose which ones to complete? What repairs are a must for buyer financing? These are probably some of the concerns you are facing right now if you consider selling a distressed property. Rest assured, this process doesn’t need to be stressful at all.
Though selling a house in any condition can be time-consuming, below is some great information that will help with selling fast and at a fair price. If you need to know how to sell a distressed property in Milwaukee, this article will cover the available options.
Selling Distressed Properties In Milwaukee
What Exactly Is A Distressed Property?
Properties can become distressed when the homeowner loses the ability to keep up with the financial obligations of owning a home. For example, if you were to default on your payments or can no longer keep up the house to safety standards, it’s considered distressed. This is especially so during situations like an illness, death, or job loss, which could lead to lost income or a necessary relocation. Other circumstances would include foreclosure, bankruptcy, divorce, and poor conditions.
What Should You Know About Distressed Homes
There are a few things you should know about distressed properties, especially if you don’t have much time and need to make a distressed sale. And if you are facing foreclosure, you will need to sell your house quite fast. Here are six tips to help you get started selling your distressed property in Milwaukee.
Tip 1: You May Need To Fix The Home To Get An Appraisal
Some distressed properties don’t meet the criteria for an appraisal because of specific issues such as exposed floorboards or water damage. To get an appraisal done may require you to do necessary repairs. Unfortunately, if money is tight, to begin with, making repairs can be pretty costly. Not to mention, it requires a lot of time and effort on your part.
Here is a general idea of what some common repairs cost:
- Roof with asphalt shingles $1,500-$9,000
- HVAC unit $5,000-$10,000
- Vinyl siding $2,000-$16,000
- Hardwood floors $9,000-$12,000
- Carpet $3,500 to $5,000
Another way to add additional value to your home and could increase your appraised value is to do some remodeling. But if you are thinking about remodeling your home, there are some upgrades that may not give you a good return on your investment. Bathrooms and kitchens tend to provide the best return on their investment but can end up costing a lot.
- The average cost of a kitchen remodel in Milwaukee is between $9,000 to $43,000
- The average cost of a bathroom renovation in Milwaukee is between $6,000 to $15,000
Tip 2: Selling To A Cash Buyer Is A Good Option
Unless you would be willing to fix the house before selling it, distressed homes typically can’t qualify for mortgages. So what you really need is a cash buyer. Cash buyers don’t use bank financing to purchase homes, so they wouldn’t need an appraisal to complete the transaction.
Finding a cash buyer may be a bit tricky, so it definitely wouldn’t be advised to call the number on a random “We Buy Houses” sign. You will want to find a reputable cash buyer that buys distressed properties in Milwaukee and has a legitimate website with actual reviews from past homeowners.
Also, cash buyers typically purchase distressed properties in as-is condition. So if a cash buyer is encouraging you to make repairs before purchasing your home, you probably want to look for another buyer.
Besides paying in cash and buying your home as-is, they can also buy houses with any challenges (financial issues, liens, code violations, hoarder house) and can close quickly. As long as you work with a reputable home buyer, you will receive a no-obligation offer.
Tip 3: Understand The Value Of Your Home
When it comes to selling a distressed property, it would be good to have an idea of the value of your home. You may be tempted to look online at real estate estimators, but those can be off by thousands of dollars. Online estimators don’t take into account the current condition of your home.
The best way to get an idea of how much your house is worth is by understanding the local market and comparing prices with similar-sized homes that have sold in your area. Also, it will help if you look for properties that are similar in amenities to yours.
If your property indeed falls into the distressed category and you plan to sell it as-is, you probably shouldn’t expect top dollar for your home. When determining the value of your home, keep in mind that all the repairs and renovations will be coming out of the next homeowner’s pocket.
Tip 4: Make Sure To Disclose Everything To The Buyer
In Wisconsin, you are legally required to disclose the condition of your home to a buyer. So regardless if you find a buyer or choose to sell to cash buyers, you will need to be upfront about the condition of your distressed home. If you knowingly hide property defects, you may face a lawsuit in the future.
You will need to fill out a real estate condition report which contains multiple questions requiring comments about structural defects in the home, such as foundation, roof, HVAC, plumbing, and electrical. Other inquiries are about possible environmental problems, such as asbestos, lead paint, water quality, radon, or on-site fuel tanks. The remaining questions are regarding legal issues to do with the property.
Wisconsin law also requires you to give the completed report to the buyer no less than ten days after you have accepted the buyer’s offer to purchase, though it can be provided earlier. Once a buyer discovers the issues before closing, they could either lower the price or back out.
Tip 5: Hiring An Agent And Paying Their Commission Is Not Necessary
When it comes to selling a distressed property, listing your property with an agent may not be a good idea. Typically listing your home in Wisconsin will be expensive, and chances of actually closing a sale are very slim. You more than likely will be taking a price reduction because of the condition of your distressed house. Plus, having to pay a realtors 6% commission could reduce your profits. And realtors can not guarantee to find you a buyer or when your house will sell.
If you’re dealing with time constraints, this can delay the selling process. Furthermore, if you aren’t living in the property and it takes a while to sell, you may find squatters taking advantage of the unoccupied home, leaving you responsible for any damage they created.
When faced with this situation, it would be best to find a real estate investor like Cream City Home Buyers that you can sell to directly. They can close on your schedule, whether you need a fast or slow-closing, which would allow you to move out when the timing is right. When you sell to investors or cash home buyers, you won’t have to pay any real estate commissions or closing costs.
Tip 6: Make Sure To Get Everything In Writing
Make sure to get all the contracts in order, especially if selling on your own. You will want to check that all the paperwork is done correctly and have the disclosure document handy; that way, everything is done legally.
When selling to a cash buyer, this process is much easier since they work with a title company to prepare closing arrangements.
Are You Ready To Sell Your Distressed Home?
To save you time and money selling your distressed house with an agent or by owner, finding a cash home buyer is your best option. The whole process can be done quickly, relieving any stress on your part.
Cream City Home Buyers is a reputable cash buyer in the Milwaukee area that would be happy to look at any property you need to sell. Besides buying distressed homes, they also purchase properties in any condition:
- Old, Outdated
- Storm damage
- Fire Damage
- Termite Damage
- Full or stuff or trash
- Major repairs needed
- Problem tenants
- Unfinished construction
We understand that selling your house is not easy, and sometimes you may need to sell faster than you’d like. If you need to sell your house quickly in Milwaukee, you can count on Cream City Home Buyers to give you a fair cash offer for your home, no matter what condition your home is in.
Visit our website to get a cash offer today! We look forward to working with you.