Unfortunately for the owners of a fixer-upper property, 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 or one that appears to need too much work (which most people refer to as a fixer-upper property). As a result, sellers understand they are up against a severe challenge when the inspector arrives (after they’ve found a buyer) and often spend restless nights awaiting the inspection report.
In addition, the inspection results may highlight so many issues with the house that they 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, permits are required, the increasing costs of materials, etc. increase 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 Dallas fixer-upper property.
FSBO
FSBO or For Sale By Owner is another option if you have a Dallas fixer-upper property that has become too costly. 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 can be attractive because there is some room left for a little bit of profit with this type of listing, and listing as a FSBO doesn’t involve paying thousands in real estate commissions, potentially leaving more profits for yourself. However, while this option sounds good in theory, it rarely works to your advantage to sell on your own.
You’ve likely taken a loss from the start and don’t realize it yet because 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 setting your asking price too high or too low; either can cause your listing to bleed money. Before jumping into the market on your own, why not contact a local professional investor, like North Texas Cash For Homes, who will detail the amount your home could sell for on the traditional market vs. the offer we make for your home?
Fix It Up Completely and List It Traditionally
Of course, while time-consuming and costly, the most profitable way to sell a Dallas fixer-upper property is by completing the work entirely and presenting the home on the open market in a completely renewed state with a local real estate agent. Hands down, that is how you will likely make the most profit.
However, if this isn’t an option, you could instead do minimum updates and repair’s to make the house livable and see if you can sell to a homeowner who is willing to finish out the rest of the cosmetic repairs themselves after they purchase it from you. While television shows Like HGTV have glamorized rehabbing and remodeling houses, you should seriously consider hiring professionals to ensure you aren’t unknowingly digging yourself into a hole that you cannot get out of profitably. However, before you begin consulting professional contractors, you should thoroughly understand the ARV, or after-repair value, to ensure you have enough margin to make the project worth investing your time, energy, and finances.
But if you’re already in the middle of a project and a money pit is all you continue to advance through the rehabilitation or remodel of the property, then you should consider selling directly to a local buyer like those at North Texas Cash For Homes and relieve yourself 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. We don’t charge commissions and we cover your closing costs for you. And you’ll have a guaranteed closing date to plan your move, often in just a few short weeks. Now, relax! If that’s moving a bit too fast, North Texas Cash For Homes is flexible on the closing date. We can schedule it as far out as you need.
North Texas Cash For Homes
The easiest solution is selling it in as-is condition to North Texas Cash For Homes and relieving yourself from the costs of your Dallas fixer-upper property. At North Texas Cash For Homes, we do this because we are great at rehabilitation properties in Dallas, and we take great pride in our work; we want you to feel good about working with North Texas Cash For Homes long after leaving the closing table. Call North Texas Cash For Homes at 214-761-3150.