Selling Your House With Damage in London, Ontario
Updated: Oct 1, 2020
Include As-Is in Your MLS/Private House Sale Listing
One way to sell your house with damage in London, Ontario would be to include the term “As-Is” in your property listing. This will communicate that you are not willing to make repairs to the property before the sale or issue any guarantees or warranties on the condition of the property - any potential buyer will understand what this means. When including “As-Is” in your listing, it will also raise concerns that there is something wrong with your property and may deter buyers who are looking for something turn-key (like first time home buyers, an older demographic, etc), especially since you have no plans to fix any damage. This type of listing is attractive for investors with large enough portfolios or contractors who are experienced in purchasing properties that are listed in "AS-IS" condition.
Inspect Your Property and Disclose Everything
Another consideration for selling your dated house or damaged property in London Ontario is to have the property inspected and make sure to disclose any known damage or issues such as asbestos to potential buyers. Making these inspections and disclosures available on your listing will help the buyers determine how severe the damage is and if they are willing to take the property on after they buy it. This is very important, as it will indicate which type of buyer is most suitable for your property. For example; a handyman can likely do most cosmetic, dated and minor electrical / plumbing repairs, but items such as structural issues, cracks in the foundation or structural components, asbestos, etc may be well above what they are capable of. Some properties may be in such disrepair that it is less expensive to have the structure demolished and build a new structure to the buyer’s taste. If this is the case, and it is visually obvious that the building needs a complete gut, overhaul or demolition, an experienced buyer will know exactly what it will cost him or her to renovate or demolish the property and novice investors or household handymen will likely be deterred. Some properties have such a great location that the land itself is worth most of the asking price and it is worth buying and tearing down the structure, especially if it is a great waterfront property or has some other fantastic feature.
Visually Spruce it Up
Something to consider for selling your damaged house in London Ontario is to visually spruce it up. The damage might not seem so overwhelming if the rest of the property is taken care of and may help the new buyer visualize what the property could potentially look like once the damage has been corrected. This may include a fresh coat of paint, a few new flowers in the garden, or just simply pressure washing the exterior of the property. This will help make the property look more appealing and closer to being occupied once the damage has been corrected. Keep in mind the repairs that will need to be made so you don’t waste your money improving the look of an area that will just be destroyed during repairs anyway.
Consider “low-ball” offers
When selling a damaged home in London, Ontario, definitely consider “low-ball” offers. If you have added As-Is to your listing, disclosed all known damage, and visually spruced up your property, you are certainly going to receive many offers that you feel are a bit too low. You may need to entertain a few of these offers and consider them. With damage, you will probably not receive offers near the average market value, so you may have to sell at a lower amount than you maybe would prefer. Something to also consider would be to have a building inspector come out to the property to disclose any conditions that are to be concerned with as they can give you a ballpark price of what such items would cost to replace. This would be a good benchmark for knowing how much lower you should entertain offers that are below market value, given the state of the home.
Sell Directly to a Home Buyer
The easiest and most reliable way to sell your house with damage in London, Ontario is to sell your house directly to a professional home buyer. Most of these buyers are in search of any property they can get their hands on and are willing to purchase them with damage. Most of these home buyers will also make you cash offers with short closing time frames so you can sell this property fast and receive a no-hassle agreement. This would be the most ideal house buyer to go with because you do not have to work with a real estate professional, you likely won’t have to deal with showings or building inspections or do any improvements at all to your property. You will also have to be prepared to receive a lower than market value offer from these buyers since they are willing to put in all of the work, pay for your closing costs and would be expecting to turn a small profit for their time, money, and effort into bringing the house up to modern visual and building standards.
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