Home sellers who need serious repairs can find a slow market to be their worst enemy. When a housing market favors buyers, buyers really want to have their inventory choices, and get used to finding bargains on homes that are in perfect condition. Most buyers do not want to be bothered with fixer rods, especially when they can see many houses that are moving for the same price. What's a home seller to do when they want to sell their home, but he needs repair?
One solution is to turn to home investors. There are many investors in the market who buy properties, repair them, then rent them or resell them at the retail market. Commonly known as stunning homes, fixing a property for resale gained popularity in the hot market a few years ago. It seemed that rising prices meant that no one could buy, repair and return a house and kill. Not now that the market has turned. Now that it is harder to sell homes and prices have skyrocketed for materials, the craze has slowed.
Although fans may have left the market, there are still plenty of professional real estate investors still buying homes to repair and resell them. Often these buyers can make cash offers, or close quickly because they have sources of financing for this type of real estate investment. They will need a significant discount on the market price, of course, because buying a house in need of repair can be risky in a difficult housing market. But with the right price, these buyers can take a home that needs to work the hands of the seller in a jiffy.
One of the only alternatives to investors for the seller with a problem at home, is to offer incentives to potential buyers, such as the seller's assistance, or to do the work before putting the house on the market. It is difficult to get a bank to lend to a homeowner if a lot of work is needed on the house. For some buyers with good credit history, for houses in areas where prices are stable, a bank can provide a construction or rehabilitation loan for a home that needs work. Otherwise, a home seller trying to sell a house in need of work will have to talk to creative buyers, or be creative himself.