If your home is in a poor state of repair and you’d like to sell, it may be difficult. Banks aren’t often willing to lend on properties in poor condition, a problem for interested buyers.
Homeowners who bought a property to renovate but bit off more than they could chew may have second thoughts about their purchase. Buy to let landlords could have similar regrets if tenants have damaged their property.
Selling on a property in poor condition or with structural damage is not easy. Even if a buyer is interested in snapping up a bargain, the bank may be unwilling to give them a mortgage on a ‘high risk’ property.
The Problem with Low Appraisals
Value appraisals that are low in value could result in a potential buyer being refused a loan. This is because appraisals are used to estimate the condition of a home. If the appraisal is valued at a level lower than the property was originally thought to be worth, then this signals trouble. It is usually a sign that extensive repairs need to be done or that there is a structural issue.
Lenders may stipulate a repair clause, meaning that the buyer must put money into renovation before they can obtain a mortgage. Some banks will decline a mortgage application outright.
Selling Your Home for Cash
Where a property can’t be mortgaged, it can be sold for cash – quickly. Advantages of selling a home for cash include.
• Home for cash companies have the funds to buy properties without the need for a mortgage.
• Completion is guaranteed. The completion date can be chosen by the seller.
• The sale can close in as little as seven days.
• Legal fees and appraisal fees are covered by the company.
Find Minneapolis buyers of ugly houses and those in a poor state of repair, allowing people the cash they need for a new home and the ability to move on to pastures new.