When sellers are dealing with time constraints or financial hardships, selling a house as-is can be an appealing option. Making repairs can be time-consuming and expensive. But what does it mean to sell a house in Minneapolis as-is? Would it be helpful to make some minor repairs? Who purchases a house as-is condition anyway? All are great questions to ask when deciding if selling a house as-is is right for you. We’ll go over everything you need to know about selling a house in poor condition in Minneapolis and what selling strategy would be best for you. So let’s get started!
How To Sell A House In Poor Condition In Minneapolis MN
Can You Sell Your House in Poor Condition?
The first thing to figure out is if you can sell a house in poor condition, and the good news is you can! But let’s look at what some people would define as a house in poor condition. If your home has:
- foundation problems
- a leaky roof
- termite damage
- fire damage
- storm damage
- water damage
- major repairs needed
- unfinished construction
You would likely fall into the category of poor condition to prospective buyers.
Some other things that may qualify the home in poor condition would be if the property is a hoarder house, if the house is old and outdated, and if the house is abandoned. Those could all cause poor conditions to live in, and people may consider them uninhabitable.
If you’re unsure what category your property falls under, you can learn more when you have your home appraised. An appraiser will rate the condition of your home from C1-C6.
Below is what each of those ratings mean:
C1: Improvements have been recently constructed and have not previously been occupied. The entire structure, including components, are new.
C2: Improvements feature no deferred maintenance, little or no physical depreciation, and require no repairs. Building components are new or recently repaired, refinished, or rehabilitated. In this category, properties are either almost new or have been newly renovated and are similar in condition to new construction.
C3: Improvements are well maintained and feature limited physical depreciation from normal wear and tear. Some components may be updated or recently rehabilitated. The home has been well maintained.
C4: Improvements feature some minor deferred maintenance and physical deterioration from normal wear and tear. The residence has been adequately maintained and requires only minor repairs to building components/ mechanical systems and cosmetic improvements. All major components have been adequately maintained and are functional.
C5: Improvements feature obvious deferred maintenance and require significant repairs. Some components of the building need repairs, rehabilitation, or updating. The functional utility and overall livability are somewhat diminished due to conditions, but the dwelling remains usable and functional as a residence.
C6: Improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the dwelling. The improvements require substantial repairs and rehabilitation, including many or most major components.
The kitchen and bathrooms are also rated with
- Not Updated
- or Remodeled, along with a timeframe in which work was completed.
Having a home appraisal done will help you determine what condition your home is in and how much your home is worth, which will assist you in determining a listing price.
To go back to the initial question, can you sell your house in poor condition? Yes, you can, although your pool of potential buyers will be smaller. There are people out there who purchase homes in as-is condition, but traditional buyers are typically not looking for fixer-uppers. Unless they get the house for a great deal and have the time and money to invest in it, they will likely pass. Most buyers nowadays want to buy a place that is move-in ready and won’t instantly require money to be spent on repairs.
That being said, you shouldn’t get discouraged; there are a few ways you can increase your chances of finding the right buyer to purchase your home.
How to Sell a House As-Is in Minneapolis
Selling a house as-is is possible, and you can go about it a few different ways. The first thing that would be recommended to do is determine what repairs need to be done around the house. Hire a home inspector to evaluate the property and use the report to figure out what repairs are required. Doing some minor repairs around the house would acutely be helpful. The prospective buyers would see that as something they won’t have to worry about, and you may get a higher offer on your home. As far as the major repairs, get several estimates to determine how much it would cost to fix these issues. You may be able to get one or two of them done, or you can use the estimates to show buyers how much those repairs would cost. Knowing more about the repairs and how much they cost will help you negotiate a fair price for your home.
To help you categorize minor and major repairs, we’ve put together some examples below.
Minor Repairs to Your Home
If you can afford to make some minor repairs and are pretty handy, it wouldn’t hurt to make some simple fixes around the house. Anything a buyer can check off on their to-do list will be helpful. Here are a few minor repairs you can make to your home that are relatively inexpensive and easy to do:
- Touch up paint around the house or repaint to a neutral color
- Fix a leaky faucet
- Unclog toilets or faucets
- Replace light fixtures with updated ones
- Do some yard work, weed the flower beds
- Touch up the paint on the front door and mailbox
- Powerwash the walkways and house
If you’re unsure how to fix or replace something, a useful resource is YouTube. They have how-to videos for a variety of home repairs.
Major Repairs on Your Home
More than likely, if your Minneapolis home is in poor condition, it needs some major home repairs. If you have the time and money to do one or two major repairs, it will increase your chances of selling and getting a reasonable price from your home. But if you need to move quickly and prefer not to invest any more money into a home you’re about to sell, that is understandable.
Here is a general idea of what major repairs can cost and how long they usually take to complete.
- New Roof – between $4,700 and $10,500. Timeframe: a few days to a week depending on weather conditions
- New Furnace– between $2,100 to $6,000. Timeframe a day or two.
- Foundation Repair– $2,000 to $7,000. Major repairs using hydraulic piers can cost $10,000 or more. Timeframe: several days depending on the severity of the issue and weather conditions.
- Termite Damage Repair– Average cost $3,300. Timeframe: several days depending on the amount of damage.
- Water Damage– between $2,000-$5,000. Timeframe: several days to a week. The area will have to be dried to prevent mold growth and then sealed to prevent future water damage.
That gives you an idea of what some major repairs can cost, but that doesn’t include what it would cost to get your home to current standards. If your home is outdated, updating the house will be very costly and time-consuming. Although you won’t be making these updates, your buyer will be thinking about how much they will cost them to complete. Here are some examples of typical improvement costs and time frames.
- Kitchen Remodel– average cost $20,500. Minor upgrades/renovations start at $10,000. Full gut can reach up to $50,000. Timeframe: months
- Bathroom Renovations– average cost $9,000-$20,000 depending on the level of finishes and master bathroom vs. half bath. Timeframe: several weeks
- New Floors– average cost for hardwood floors $4,400, laminate $2,800. Price varies depending on the amount of square footage. Timeframe: several days
- Electrical Updates– replacing an old panel and outdated wiring expect it to cost $3,000 to $5,000. Timeframe: several days to a week
- New Siding– New exterior siding on a home runs about $14,000. Timeframe: several days.
- New Windows– To replace 10 windows and frames, usually costs between $8,500 (vinyl) and $20,000 (wood). Timeframe: several days
Keep in mind this does not include the cost of a contractor to oversee the renovations. Contractors usually charge between 10% to 15% of the project’s total budget. So if the entire renovation costs $50,000, the contractor’s fee would be $5,000 to $7,500.
It’s helpful to see the expenses and time frames you will avoid by selling as-is, but this is the information that your buyer will be considered when making an offer on your property.
Give Your House a Lick of Paint
As discussed earlier, adding a touch of paint to your property before selling can actually do a lot of good. If the wall colors inside the home haven’t been updated in a while, repainting to a neutral color would be advised. Although dark colors make spaces appear warmer, they also make them appear smaller. So if your home is small as it is, you should consider finding a lighter neutral color to help make the space appear bigger and brighter. Repainting is an easy, inexpensive DIY thing you can do that is good for resale.
Decide How You’re Going To Sell Your House As-Is
Once you’ve narrowed down which repairs you’d like to make, you’ll need to decide on a selling strategy. It’s important to figure this out because, depending on the method you use, that may affect the total amount you get from selling your home.
If an agent sells your home or helps a buyer purchase your property, there will be realtor commissions involved. Realtor commissions can cost several thousand dollars, which can eat into your profits. You’ll want to know that on the front end so you won’t be surprised when you walk away with less money than you thought.
The other thing you will need to pay is closing costs. In Minneapolis, sellers closing costs add up to 1%-3% of the sales price. You’ll want to keep these costs in mind when deciding which selling strategy you’d like to use to sell your home.
Selling Your House with a Realtor
Selling your house with a realtor is pretty popular in Minneapolis for apparent reasons- real estate agents handle a lot of the selling process. Selling a home isn’t easy, and there is a lot of work involved, so it’s nice to hire someone dedicated to selling your house. But there are some costs homeowners face when selling with a Minneapolis real estate agent that you should know about before hiring a realtor.
Furthermore, there are various agents out there, some that are top sellers and some that are not. You’ll want to find someone knowledgeable and experienced selling houses, especially since you’re selling as-is and will need to find a specific buyer. Top agents work hard to get where they are, but that also means they are pretty busy with multiple listings. You’ll want to make sure they can dedicate time to your listing to get it sold.
An agent with only a few listings may have more time to focus on selling your property but may not have the experience you need in this unique selling situation.
Whether you work with a top agent or a newbie, you’ll likely sign a listing agreement and agree to a commission percentage to be paid upon the sale of your property. Listing agreements can be for 3-6 months, allowing your agent to sell your home within that time frame. The commission amount doesn’t change for the amount of effort put forth by your agent. If they’re able to sell your home, within 3-6 months, they will earn a commission of 2.5-3% of the final sale price. The buyer’s agent will also receive a commission of the same amount ( 2.5%-3% ). Depending on the final sale price of your property that can cost several thousand dollars in commission fees.
You will also need to pay closing costs as well when you sell your property.
Due to the cost involved and lack of certainty the home will sell fast, homeowners look at other alternatives before deciding if they should hire a local real estate agent.
Sell Your House By Owner
Selling by owner is another selling strategy that potentially could cost less than selling with an agent. Keyword “potentially.” There are listing costs you’ll need to expect. And although you’ll be able to save on seller’s commission by not using an agent, if your buyer uses a realtor, there could be commissions involved.
The biggest mistake homeowners make is not pricing the home correctly. You could miss out on profits if you were to price too low or turn buyers away if you price too high.
Furthermore, it’s not every day people sell houses, so there will be a bit of a learning curve and quite a bit of work involved to complete a successful home sale.
If you have the time to research and learn what it would take to sell your house as-is in Minneapolis, it doesn’t hurt to try.
Just remember you still may have to pay something towards buyer commissions, closing costs, and other listing fees, but still do all the work to sell your home.
Sell Your House As-Is to a Cash Home Buyer
Another selling strategy is to sell to a local cash home buyer. Cash home buyers are usually local investors looking to buy houses in as-is condition, which would be perfect for you! It’s not unusual for a home buyer to have a team in place to handle home repairs, so houses in poor condition don’t bother them.
Generally, their home buying process is pretty quick too. Since home buyers pay in cash, they can close in as little as a week since they don’t need to line up bank financing as a traditional buyer would. Furthermore, they can make you a cash offer for your home within 24-hours of you contacting them. Knowing you have an offer and buyer for your house elements any uncertainty and worry about selling your house as-is in Minneapolis.
So you’re probably thinking, this all sounds wonderful, but is there a catch? No, there is no catch. Although you may have heard some misconceptions about home buying companies, if you work with a reputable one, you should be fine.
Here’s the thing, you’re selling your house as-is; they will make you an offer for your home in its current condition. The offer you would get for your home does account for the repairs that would need to be made and time it will take to complete the improvements before they can sell.
But in return, you get to sell your house quickly and not have to deal with the cost of repairs or the time it takes to complete them. This means that you won’t be getting full market value for your home but rather a fair price that considers the cost to complete those things.
That being said, they don’t expect you to make any repairs major or minor. Don’t worry about painting, you don’t even have to clean when you move out. If your house is full of stuff or trash, they’ll take care of it.
Another perk to working with a cash home buyer is that there are no realtor commissions or fees, and they will often pay for closing costs.
Ultimately working with a cash home buyer would save you thousands of dollars compared to selling with a realtor or by owner.
If you’re interested in talking with a local home investor and getting a cash offer for your home, contact Mill City Home Buyers. Mill City is a local home buying company in Minneapolis, Minnesota, and purchases houses in as-is condition all the time.
The purpose of selling a house as-is is to avoid the expense of home repairs and the time involved to complete them. If you sell with an agent or by owner, more than likely, you’ll be advised to make a few minor repairs to increase your chances of selling. But unfortunately, that doesn’t guarantee a fast home sale. The real estate market can be unpredictable. And time of year matters, like if you’re trying to sell during the winter in Minneapolis you may face some obstacles.
Currently, the average number of days for a house to receive an offer in Minneapolis is 78, and that average is based on houses in good condition.
Bottom line, if you need to sell your house fast because you’re facing foreclosure, bankruptcy, or want to move into another home quickly, working with a local investor like Mill City Home Buyers would be ideal.
Feel free to contact them today to learn more about how you can sell your house as-is and get a cash offer for your home. You’ll be glad you did!