Over the past few months, homes across the United States have been selling at astronomically high prices. As HomeLight reports in their Top Agent Insights for Spring 2021 report, 94% of agents across the United States report that bidding wars are on the rise or at their peak and 97% believe that historically low mortgage rates are continuing to boost buyer demand.
While these trends are great for homeowners that are looking to sell properties in pristine condition, even homeowners that are selling properties in need of rehabilitation can get a decent price for their property because of the national inventory shortage. HomeLight also reports that in Q1 2021, 91% of agents reported that there was less inventory than expected in their markets, and 93% of agents also report that home prices have been on the rise in their territory.
Considering those details, here’s some information to help you get the most from selling your home even if there’s room for improvement.
Know the types of home buying companies
Before putting your home on the market, it’s important to know the different types of buyers that you may encounter when selling your home as-is. These include house flippers, buy-and-hold companies, and iBuyers.
You’ve probably heard of house flippers before. They’re buyers that purchase undervalued homes, renovate the space, and then sell for a profit. These buyers typically look for properties that can be sold for a 15%-20% profit margin at a minimum. Buy-and-hold companies are similar to flippers because they look for properties that they can rehab and profit from, however, buy-and-hold companies profit from ongoing rental revenue rather than a one-off sale.
iBuyers are companies that use real estate market data and technology to make immediate offers on properties, sight unseen. iBuyers mainly focus on properties that require minimal rehabilitation and are fee-based meaning that they make an offer based on the home’s value but then charge a fee (often 6%-7% depending on location) to handle the sale. After the homeowner accepts an offer, the iBuyer sends a representative to inspect the home, and if repairs are required, the iBuyer will likely request a credit to be applied at closing.
Sell your home the right way
One of the biggest challenges of selling a home as-is is the frequent haggling that occurs because buyers come to expect discounts on the property. To get the most out of your property when selling, it’s essential to consult an experienced real estate agent as they can help you navigate the sale process and identify relatively simple improvements that can boost the value of your home.
When selling any property it’s essential to disclose significant flaws and damage in the property, and also price your property to give buyers room to make a profit even after performing necessary projects. Regardless of if you choose to implement upgrades or sell your home as-is, you can’t neglect the importance of decluttering and organizing your belongings. In fact, deep cleaning, hauling out old junk and furniture, and cleaning carpets can result in up to 935% ROI.
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