Unfortunately for owners of fixer-uppers, when competing in the real estate market, most buyers search online for properties they can move into immediately. As a result, the likelihood is high that they will scroll right by a listing that doesn’t present well. As a result, sellers understand they are up against a severe challenge when the inspector arrives and often spend restless nights awaiting the report.
In addition, the inspection results may cause the buyers to back out or request you allow credit for the repairs, often with exorbitantly high estimates, further depleting your sales profits. Finally, when you’ve got a property that needs repairs or total rehabilitation, the situation will likely only progress into further distress as repairs on the property are delayed, increasing costs tremendously.
There comes a time you must finally put an end to the suffering. The exit strategy you use can make a massive difference in the outcome and the amount of cash you walk away with after the closing. So read on as we explore what to do with your costly Virginia Beach fixer-upper property.
FSBO or for sale by the owner is another option if you have a Virginia Beach fixer-upper property that has become too costly to hold. Unless you want to face possible contingencies and deal with assisting the buyer in qualifying for a loan, usually taking a hit for the necessary repairs, you’ll need to sell as-is for cash. This option is often attractive because there is little room left for a profit with this type of listing, and listing as an FSBO doesn’t involve paying thousands in real estate commissions, leaving more profits for yourself. However, while it sounds good in theory, regrettably, it rarely works to your advantage to sell on your own. You’ve taken a loss from the start, FSBO homes tend to sell for 26 percent less than those listed with an agent, and the percentage of FSBO home sales has slowly declined and now only accounts for 7 percent of market sales. One of the biggest mistakes you can make with your FSBO is to set your asking price too high or too low; either can cause your listing to linger. Before jumping into the market on your own, why not contact a local professional investor, like an expert from Onyx REI, who will detail the amount your home could sell for on the traditional market vs. the offer we make for your home?
Of course, while time-consuming and costly, the most profitable way to sell a Virginia Beach fixer-upper property is by completing the work and presenting the home in a renewed state. If this isn’t an option, you could instead do minimum updates and repair the most obvious damage. While television shows have made this undertaking appear as if it’s easy, you should hire professionals to ensure you aren’t causing further damage. However, before you begin, you should thoroughly understand the ARV, or after-repair value, to ensure the project is worth investing your time, energy, and finances. By reaching out to a direct buyer like those at Onyx REI who believe in total transparency, you’ll understand each figure used and precisely how your direct buyer reached the offer. Then, you can make an educated decision about what works best for your circumstances.
A money pit may be all buyers see as they scroll through listings and see your Virginia Beach fixer-upper property. You can expect lowball offers, as the buyer will sign off on taking on all of the risks of unseen damage or structural issues as they dig deeper into the project. Because you’ll be required to complete a disclosure form, despite the as-is status of your listing, it’s best to be upfront about the issues you’re aware of while pointing out all of the positives about the property. It’s best to provide full disclosure and face the problems head-on, avoiding unnecessary costly legal conflicts down the road. On the other hand, should you decide to sell directly to a local buyer like those at Onyx REI and relieve you of the burden, we’ll take on all the risks of the repairs. And unlike a traditional listing, you won’t pay commissions or closing costs. And you’ll have a guaranteed closing date to plan your move, often in weeks. Now, relax; if that’s moving a bit too fast, Onyx REI is flexible on the closing date.
The easiest solution is selling it in as-is condition to Onyx REI for relief from the costs of your Virginia Beach fixer-upper property, and an offer you’ll agree is fair. At Onyx REI, we do this because we are your neighbors here in Virginia Beach, and we take great pride in our work; we want you to feel good about working with Onyx REI long after leaving the closing table. Call Onyx REI at (757) 260-9572.