Before their homes are listed on the market, most homeowners conduct repairs and renovations to their property. Some do this to make the property more appealing to potential buyers, while others consider the potential market value increase of a low-cost but high-demand feature.
Some homeowners, however, do not have the time or resources to have these repairs and renovations made – especially to a home in Lexington that’s particularly damaged. This can result in a number of disadvantages when trying to sell on the market. But here are your possible options to sell your damaged home as quick as possible.
Take Out A Loan For Repairs
This might not be the fastest solution overall, but if your house were repaired and updated, the faster it can sell on the market. If you do not have the financial means to repair your home at the moment, consider taking out a loan from friends, family, or a lending company.
To get the most out of your loan, you need to determine how much your renovation budget should be. Ideally, it should be enough that the proceeds from the sale offset the cost of your loan. For instance, the average cost of remodeling your kitchen is $26,214, and you can expect to get back up to 72% of your costs recouped. On the other hand, adding a swimming pool to your home costs around $42,480, but only gets you back 51% of your costs.
A good rule of thumb is to spend no more than 15% of your home value. See what repairs and renovations you can do using that budget and then take out a loan to pay for these repairs.
Sell To Investors
In a typical real estate market, it can be difficult to sell a damaged home in Lexington as many buyers consist of private individuals looking for property they can move into. By targeting those looking to buy homes as an investment, you’re looking at people who want cheap houses they can profit from.
Investors may more likely be interested in your property as they can do two things: house flipping or rental properties. House flippers buy cheap houses in the market, perform the necessary repairs and renovations, and then put it back on the market at a higher price. Those interested in rental properties will buy cheap houses, make it livable, and then rent it out until they profit from their expenses.
Sell Below Market Value
There is still a small market of private buyers that may be interested in damaged homes, so it might be possible to sell to private individuals looking for a cheap home to buy. Those with 203k loans are interested in finding damaged homes and have federally-backed loans to pay for both the property and the repairs needed to make the house livable.
Regardless of where these buyers get their financing, however, expect that a damaged house will often sell at a cost below market value due to its state. Because buyers (or in the 203k loans’ case, the lenders) will be paying for the repairs you didn’t do, it’s unlikely that they will agree to a market value price.
Sell To A Cash Homebuyer
If you can’t renovate or repair your home and listing your property on the market isn’t fast enough, here’s a fast and convenient solution not many homeowners know: selling directly to a cash buyer in Lexington, KY.
Cash buyers purchase your home as-is, meaning you receive a fair offer regardless of the state of your home. Unlike listing your property which can take between weeks or days, you can get a cash offer within 72 days. Should you accept this offer, the cash buyers handle all the closing costs and additional fees, giving you less expenses to worry about.
Need To Learn More?
Rylo Homes provides fair cash offers for properties in Lexington and other areas in Kentucky. We understand that not all homeowners have the time and resources to list their properties and wait for potential buyers, and we’re providing a fast and convenient option to sell your home for a fair price.
Get in touch with us today to get a fair cash offer within 72 hours or less.