Unfortunately for owners of fixer-uppers, 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. As a result, sellers understand they are up against a severe challenge when the inspector arrives and often spend restless nights awaiting the report.
In addition, the inspection results 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, increasing 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 Baltimore fixer-upper property.
FSBO
FSBO or for sale by the owner is another option if you have a Baltimore fixer-upper property that has become too costly to hold. 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 is often attractive because there is little room left for a profit with this type of listing, and listing as an FSBO doesn’t involve paying thousands in real estate commissions, leaving more profits for yourself. However, while it sounds good in theory, regrettably, it rarely works to your advantage to sell on your own. You’ve taken a loss from the start, 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 to set your asking price too high or too low; either can cause your listing to linger. Before jumping into the market on your own, why not contact a local professional investor, like an expert from Perry Hall Investment Group, who will detail the amount your home could sell for on the traditional market vs. the offer we make for your home?
Make Repairs
When considering selling a fixer-upper property in Baltimore, the most profitable route is often completing the necessary repairs and presenting the home in a renewed state. This can significantly increase its market value, attracting potential buyers who are willing to pay top dollar for a move-in-ready home. However, this option is not always feasible for everyone, as the process can be both time-consuming and costly. If you lack the time, expertise, or budget to take on a full renovation, there is still an option to make smaller, more manageable updates that can enhance your home’s appeal. By addressing the most noticeable issues—like fixing leaky faucets, repainting walls, or replacing broken fixtures—you can improve your chances of a successful sale without breaking the bank.
While television shows often make home renovations look like quick and easy fixes, the reality is that it requires careful planning and the right set of skills. It’s essential to hire professionals for any repairs to ensure you’re not inadvertently making things worse. Mistakes during the renovation process can lead to even more expensive repairs down the line. Before diving into any updates, it’s critical to have a clear understanding of the ARV (after-repair value) of your property, as this will help you assess whether the investment in repairs will yield a profitable return. By doing so, you can avoid wasting time and money on unnecessary projects that won’t increase the value of your home enough to justify the costs.
If you’re unsure about whether to go the repair and renovation route or sell as-is, working with a direct buyer like those at Perry Hall Investment Group can provide clarity. Our team is committed to total transparency, and we provide you with a breakdown of how we arrive at our offer, including each figure used in our calculations. This ensures that you have all the information needed to make an informed decision. Instead of spending time and money on repairs, you can sell your home directly to us as-is, avoiding the hassle of renovations and costly repairs, while still getting a fair, no-obligation offer. At Perry Hall Investment Group, we’re here to help you navigate the best path forward based on your individual circumstances, so you can make the right choice for your future.
Traditional Listing
When listing your fixer-upper property in Baltimore, it’s likely that potential buyers will view it as a “money pit” due to the repairs it requires. This perception can lead to lowball offers, as buyers will be hesitant to take on the financial burden and risks associated with unknown structural issues or hidden damage. It’s essential to be upfront with potential buyers about the condition of the property, even though you may be listing it “as-is.” By being transparent about any known issues and highlighting the positive aspects of the property, you can build trust and avoid costly legal conflicts down the line. Disclosure forms are required for this very reason—to ensure that both parties are aware of the home’s condition and the potential liabilities involved.
If the traditional route of selling seems daunting or overwhelming, selling directly to a local buyer like those at Perry Hall Investment Group can relieve much of that stress. With Perry Hall Investment Group, you won’t have to worry about making repairs or dealing with the risks and expenses associated with a fixer-upper sale. We take on the responsibility of repairs, so you don’t have to. Additionally, our direct-buying process means you won’t pay any commissions or closing costs, saving you even more. What’s more, we offer you a guaranteed closing date, often in just a few weeks, so you can make your moving plans with certainty. However, if you need a little more time, Perry Hall Investment Group is flexible on the closing date, ensuring that your timeline works for you.
Perry Hall Investment Group
The easiest solution is selling it in as-is condition to Perry Hall Investment Group for relief from the costs of your Baltimore fixer-upper property, and an offer you’ll agree is fair. At Perry Hall Investment Group, we do this because we are your neighbors here in Baltimore, and we take great pride in our work; we want you to feel good about working with Perry Hall Investment Group long after leaving the closing table. Call Perry Hall Investment Group at (410) 989-5200.