Selling a house that needs major repairs

Some houses need more than a coat of paint. Foundation movement, an old roof, plumbing or electrical problems, mold or water damage can all make a traditional sale harder. Here's how to think through your options.

Why big repairs complicate a traditional sale

• Many buyers use loans, and lenders often won't finance a house with major safety or structural problems.
• Inspections can turn up issues that lead buyers to ask for repairs, a lower price, or to walk away.
• Houses that need a lot of work can sit on the market longer, while you keep paying taxes, insurance and utilities.

Option 1: Make the repairs, then list

Fixing the house can raise the sale price. Before you start, get written estimates from licensed contractors, ask how long the work will take, and think about what happens if the job uncovers more problems. Repairs make the most sense when you have the time, the cash and the energy to manage them.

Option 2: Make a few fixes, then list

Sometimes a handful of targeted repairs — especially safety items — makes a house financeable without a full renovation. An agent can help you decide which fixes are worth it in your area.

Option 3: List it as-is

You can list a house as-is, priced to reflect its condition. Expect fewer buyers who can get financing, and be ready for negotiation after inspection.

Option 4: Sell as-is to a cash buyer

A cash buyer purchases the house in its current condition, so you don't pay for or manage repairs. The offer will reflect the work the house needs, so it'll be below what a fully repaired house would sell for. In exchange you skip repairs, showings and financing delays, and you choose the closing date.

Questions to ask any buyer

• Is the offer in writing, and does it list exactly which closing costs are covered?
• Where will closing happen? (Look for a licensed title company.)
• Will you buy the house yourself, or assign the contract to another buyer? Is that disclosed in writing?
• Are there any fees I'll pay you?

Want to see what an as-is cash offer looks like for your house? Get a no-obligation offer.