4 Effective Strategies to Sell a Fixer-Upper Property

When buyers and sellers both sit on the sidelines of the housing market, it’s a clear indication that sale numbers will drop. 2024 was a year of fresh lows for real estate sellers due to high mortgage rates and property prices. 

They say it right that selling a property is not child’s play. One type of property that attracts even a smaller pool of buyers is the fixer-upper. It’s a house that has more than one simple issue. 

Several repairs, renovations, and redecoration work may be required to get it back to working order. While selling a fixer-upper is challenging, it is not impossible. 

Sellers just need to plan their moves strategically. In this article, we will discuss four effective strategies to sell a fixer-upper. 

1. Identify Your Target Audience 

Any successful real estate sale begins with identifying the ideal target audience. Some sellers falsely believe that buyers may not be interested in fixer-upper properties. 

To that, we simply believe that they’re not setting their targets at the right place. There are plenty of buyers who may find such a property attractive, even those that require major work. However, each segment’s motivations behind the purchase will be different. 

For instance, say a seller is looking to sell off their fixer-upper property in the San Francisco Bay area. Selling a property in this region of California can be challenging for a multitude of reasons. 

They include high housing prices, limited inventory, and the tech impact of the industry. On average, most homes on sale in this area take at least 30 days to sell. What if the seller in question is in a hurry to get rid of their fixer-upper? 

A trusted local home buyer in the SF Bay Area will be willing to buy such a property in exchange for cash. Also known as cash buyers, they aim to help sellers sell their houses easily for quick cash. 

Similarly, John Buys Bay Area Houses shares that houses sold as-is tend to attract investors who wish to customize the property. In that case, the amount of repair work needed should not get in the way of making a sale. 

Additionally, fixer-upper properties can have the following target buyers – 

• Deal hunters, who are budget-conscious buyers looking for affordable properties requiring minor repairs 
• Developers, who are more interested in the land value of the property 
• Those looking to convert the property into a rental unit or invest in it long-term 

2. Implement Effective Pricing

Now, pricing a fixer-upper property is a matter of delicate balance. The seller needs to be realistic about two things: the existing condition of the property and its investment potential. 

If the property is overpriced, it will deter buyers and may remain seated in the market for too long. On the other hand, underpricing could cause the seller to lose out on precious profits. 

A faster sale is good, but it should not come at the expense of reasonable profits. You can choose the middle ground by keeping the following considerations in mind – 

• Start by assessing the market value of similar properties in the area. Look at factors like property size, location, and the present condition. 
• Then, evaluate the expected cost of repairs that may be needed. You should have a realistic idea of the investment required. Now, subtract this number from the market value. 
• You can even consult with experienced real estate agents to know a competitive price based on market analyses. 
• Be ready to negotiate. Fixer-upper properties generally tend to attract buyers who are skilled negotiators. Provide good deals, but be clear about the lowest acceptable price. 
• Stay updated with the latest trends because the real estate market can fluctuate. You may have to adjust the pricing before the right buyers approach you. 

3. Market the Property Smartly 

The third important aspect of selling a fixer-upper is about marketing it effectively. In your case, there’s not much scope in terms of highlighting the property’s best features. 

Instead, what you need to do is showcase the property’s potential to prospective buyers. In other words, you need to make the possibilities after renovation the selling point. 

This does not mean you need not describe the property’s present condition. However, that’s not the reason why buyers will show interest in what you’re selling. 

Click high-quality photographs of the entire property area with an aerial view. This will visually communicate to the buyer the future potential. You can even highlight some unique features, including – 

• Desirable locations 
• Fertile soil in the front or backyard 
• Solid structural integrity 
• Historical architectural elements 
• Good neighborhood 

To target specific buyer groups, consider utilizing social media platforms. Make sure your real estate deal is more than just a transaction. Buyers want to see a vision come to life, a story that resonates with their ideas. 

If it’s possible to include virtual tours of the area, do so for this will cater to various buyer groups. Keep the listing transparent whilst emphasizing future scope. 

4. Choose Between Repairs or Selling As-is 

As an add-on, you will face a crucial choice: to sell your home as-is or to invest in some repairs or improvements. This decision should be made based on factors like budget, repair work needed, and so on. 

For instance, if your property requires extensive repair work, then it makes no sense to invest in repairs now. Consider finding a good cash buyer and selling it as-is. 

Even if minor repairs are needed, you may be able to find negotiating buyers. However, it’s equally true that minor repairs and renovations can enhance a property’s appeal and increase its value. 

We are referring to simple, cost-effective upgrades like – 

• Repainting the interior walls 
• Changing the lighting fixtures 
• Installing new curtains 
• Replacing cabinet hardware 
• Power washing exterior surfaces 
• Updating the door handles or knobs 

Final Thoughts

Consider your target market, the property’s current condition, as well as your financial position before deciding. If minor upgrades may bring good returns, then the investment is worth it. If not, then just sell the property as it is. 

In a 2024 poll, it was found that Gen-Zers were willing to purchase fixer-upper properties. This is because starter homes are no longer affordable for this generation.

However, many started regretting their decision as they were initially unaware of the true costs of homeownership. To you, this is a lesson in knowing your target market inside-out. 

Do not jump with excitement at the first possible offer. Assess whether you’re receiving at least a reasonable price for the property. If yes, then congratulations on successfully selling your fixer-upper!