Family-friendly neighborhoods attract young families looking for a nice place to settle and raise their children. As reported in the article by Keller Williams Memorial, the leading real estate brokerage in Houston TX, buyers in this category generally like houses with:
- An open floor plan.
- A large kitchen area.
- An updated bathroom.
- A home office.
- Plenty of light.
- A fenced yard.
- The latest in technology.
- Low maintenance.
But to purchase a house with such features is financially out of reach for many young families. So they look for a fixer-upper with potential—planning on making improvements over time.
Your problem house will likely be in the right price range for a young buyer. The challenge is to help the buyer to see your home’s potential and not its problems.
Fix the Most Serious Problems
Some buyers can accept a home with cosmetic problems with a discount, but it’s very difficult to sell a house with serious issues. The following eight most serious problems have much to do with safety, which is always the main concern for a future homeowner, especially a parent.
Asbestos
If your house was built before 1990, check for any exposed asbestos. The possibility of asbestos exposure scares away most buyers, since according to the National Cancer Institution this material is proven to cause cancer and other health problems. And it will undoubtedly cause panic in a young family with kids.
Attics insulated with asbestos are a particular problem, so breathe a sigh of relief if yours has a different insulating material. Realize that older homes can also have asbestos flooring, roofing, or siding.
Consider hiring an asbestos mitigation service to check for asbestos. Remove or encapsulate according to local codes.
Mold
Mold probably scares a young buyer more than does asbestos, however mostly because of the hype around it—mold can cause fewer serious symptoms. But the musty smell that usually accompanies it will quickly cut short a showing.
If your house has a serious mold problem, contact a professional mold removal company. However, if during your thorough investigation you found only a bit of mold somewhere in your attic or basement, you can remove it yourself. Mold in the crawl space is the easiest to clean up. And a vapor barrier installed in the area can stop the mold from returning. But mold inside walls can be far more costly to fix.
Even after the mold is removed, you will need to disclose it to your buyer in writing.
Radon
Younger families don’t want radon gas in their homes, as it’s another potential cause of lung cancer. You can purchase a radon test kit at your local big-box store for under $30.00. If your house fails this initial test, hire a professional to verify the presence of radon gas.
If radon is at an unacceptable level, it must be vented from the soil below the house. A pipe with a small blower can be installed in the crawl space for less than a thousand dollars. Venting a slab, however, is more costly.
Cracked Foundation
Young families put sweat equity into older homes to save money. But they don’t want their work to rest on a problem foundation.
No buyer expects perfect concrete or masonry in an older fixer-upper. But cracks in the foundation can be a sign of settling, rather than aging.
At the least, hire a contractor to determine if the cracked foundation is a result of settling. Concrete can be pumped under any settled areas for stabilization. And if no settling has occurred, you will have documentation to assure potential buyers.
Electrical and Plumbing Problems
Bathrooms, kitchens, and utility rooms are heavily used areas for the young family.
Make sure that all toilets flush properly and don’t leak around the base. Rebuilding a toilet and replacing the wax ring between its base and the floor is an inexpensive repair for a home seller. Make sure all drains work correctly. Hint: Inline vents help with slow drains.
As for the electrical hardware, at the least, replace any fuse protection with a modern panel equipped with circuit breakers. Make sure all outlets are correctly grounded. And install GFCI receptacles where required by codes. If your buyers are a family with little children, you can also offer them installing baby proof outlets as a courtesy.
Damaged Roof
Roof leaks must be repaired—as well as any resulting water damage. A leaking roof will turn away most buyers.
If the roof looks like it might have some storm damage, check with your insurance company. With the right type of coverage, you could be eligible for a new roof. (And a new roof will help you get more for your home than the cost of your deductible.)
Unsafe Pool
Young families and swimming pools go together—if the pool is safe. But an unsafe pool will scare away parents.
Close to a thousand children, ages 14 and under, die each year from drowning. And the majority of those deaths occur in a home pool.
If the pool at your house is unsafe, you can secure it with either a fence, a net or a safety cover.
A mesh fence is the most popular and reliable option that will satisfy any safety codes. This resource on PoolGuardTexas.com, the website of certified manufacturers of pool safety equipment in Houston TX, demonstrates in detail multiple types of fences for different surfaces and with different features. But on average they can be purchased for about $10 per linear foot.
An alternative option is a pool safety cover, costing $1-$5 per square foot. Additionally, it can serve as a barrier not letting leaves and debris fall into water.
Your buyers can have their preference for either type of pool safety hardware, so for better flexibility, you can offer them the installation at your expense after they decide what they want. If you do so, don’t forget to mention this in your listings as a bonus.
Security Problems
Even in good neighborhoods, home security is essential:
- Replace any weak exterior door that can be easily kicked open.
- Make sure each exterior door has both a locking knob and a deadbolt.
- Replace the short screws in the door frame hardware with screws long enough to extend through the frame into the rough opening.
- Replace any broken window panes.
- Make sure each double-hung window can be locked.
These are only the most essential points. Read this informative guide on residential security measures created by home improvement experts at Youthful Home that explains them in more detail and offers more ideas.
Parents want to ensure that their families are safe in the home. And any security improvements will make your home more attractive to a young family.
Alternatives to Investing in Repairs Before Selling
1. Selling As Is and Covering Future Repair Costs
What if you find a buyer willing to take on your fixer-upper AS IS, but doesn’t have the cash to pay for the repairs?
A repair escrow allows a buyer to purchase a house that needs repairs—before the repairs are completed. Essentially, the lender approves a mortgage that includes both the purchase price and the cost of the repairs. The repairs are then paid for from the repair escrow.
As long as the appreciation of the house’s value after repairs exceeds the amount in the repair escrow, there’s little risk to the buyer.
2. Selling As Is to an Investor
The other way to get rid of a problem house without making any repairs is to sell it to a real estate investor.
Investors pay cash for houses—no matter what their condition is. After contacting an investor, they visit your property and give you an offer normally within 24 hours, or sometimes on the spot. Once you accept their offer, they complete the sale within a few days.
Besides being the quickest real estate transaction you’ve ever experienced, an investor buys your problem house AS IS. You don’t have to lift a finger or pay a dime to improve your home.
However, because the investor factors all of the problems of the house into their cash offer, you won’t get full market value for the property. But you won’t have to spend any time or money trying to sell it either. This definitive guide to selling a house in bad condition AS IS by HouseCashin.com, the North America’s largest platform for real estate investors and home sellers, explains in detail all the pros and cons of selling a property to a cash house buyer.
Marketing Tips
Emphasize Good Location
Remember the buyer you want to attract. They’re starting a family, and their budget is tight. They can’t afford a nicer home, but they still want the good neighborhood that goes with the nicer homes.
Sell them on the home’s location. List the benefits of your great location, such as:
- Schools.
- Shopping and dining.
- Recreation opportunities.
- Proximity to parks.
And provide local contacts for activities for both kids and parents.
Highlight the Best Features of the House
To emphasize the house’s potential, you may need to make some updates to its interior or exterior.
“The first thing a buyer will notice is the exterior of the property. Making upgrades to the outside is as important as to the inside. Investing in curb appeal is one of the surest ways to increase your home’s value, but as long as it’s done properly.”—advises Kristina Morales, the experienced Realtor from Orange County, California in her guide on how to sell a house.
Overgrown landscaping makes a house look smaller. So do some serious trimming—especially around windows.
Don’t forget about the interior. To make the house seem larger, minimize the amount of furniture in each room.
Clean the windows and get rid of the window coverings (it’s highly unlikely that a young couple wants dated window coverings).
Replace all the bulbs with the brightest LED bulbs suitable for each fixture.
