Inherited a Fixer Upper in Hidalgo County Texas? Do You Have a House that has been Abandoned or Trashed by Tenants? Consider selling to a local cash buyer.
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 can lead potential buyers to reconsider their purchase or request credits for repairs, often accompanied by excessively high estimates. This can significantly diminish your sales profits. Moreover, if you have a property in need of repairs or complete renovation, delays in addressing these issues can escalate costs, adding to your financial burden.
At some point, you must put an end to this ordeal. Your choice of exit strategy plays a crucial role in determining the final outcome and the amount of money you retain post-sale. Continue reading as we delve into the options available for handling your valuable McAllen fixer-upper property.
For Sale By Owner (FSBO)
FSBO or for sale by the owner is another option if you have a McAllen fixer-upper property that has become too costly to hold. If your property needs extensive work more than likely it won’t qualify for a mortgage. Thus, you will only be able to sell it to a cash buyer or an investor.
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 Dolfin RGV, who will detail the amount your home could sell for on the traditional market vs. the offer we make for your home?
Make Repairs and Upgrades
Of course, while time-consuming and costly, the most profitable way to sell a McAllen fixer-upper property is by completing the work and presenting the home in a renewed state. It will require construction knowledge, pulling permits, and dealing with several inspection. Once you start opening walls, you don’t know what surprises await.
If fixing the property isn’t an option, you could instead do minimum updates and repair the most obvious damage. While television shows have made this undertaking appear as if it’s easy, you should hire professionals to ensure you aren’t causing further damage. However, before you begin, you should thoroughly understand the ARV, or after-repair value, to ensure the project is worth investing your time, energy, and finances. By reaching out to a direct buyer like those at Dolfin RGV who believe in total transparency, you’ll understand each figure used and precisely how your direct buyer reached the offer. Then, you can make an educated decision about what works best for your circumstances.
Traditional Listing
Traditional listing with a real estate agent is possible, however not all real estate agents specialize in fixer uppers or have a pool of investors to market. You will have to pay 5-6% commission that will come out of your pocket when you list. Always ask about experience and past sales to make an informed decision that works best for you.
It is important to be transparent and disclose any issues with the property while working with an agent to avoid any legal problems in the future.
Instead of listing you may consider reaching out to direct home buyers that work in your area. When searching for local investors, inquire about experience and past results. Check if you are dealing with an out of state company or a local real estate group that understands your market. Look at their website and put a face to a name. There are many generic home buyer ads and it is important to conduct a due diligence. Dolfin RGV is a local investor that works out of McAllen. We’ve been around for a long time, in the ups and downs of the real estate cycle. We buy houses in as is condition and can give you a cash offer for your property, no inspections, no commissions, no cleaning! Check if our offer can work for you.
Dolfin RGV
The easiest solution is selling it in as-is condition to Dolfin RGV for relief from the costs of your McAllen fixer-upper property, and an offer you’ll agree is fair. At Dolfin RGV, we do this because we are your neighbors here in McAllen, and we take great pride in our work; we want you to feel good about working with Dolfin RGV long after leaving the closing table. Call Dolfin RGV at (956) 904 5234.