Your Options for Selling an Inherited House That Needs Repairs

1. Sell As-Is to a Cash Buyer

One of the fastest and most convenient options is to sell the home in its current condition to a cash buyer.

✅ Pros:

• No need for costly repairs or renovations.
• Cash buyers purchase homes in any condition.
• Quick closings—often within a few days to a couple of weeks.
• Avoid dealing with real estate agents, showings, and inspections.

❌ Cons:

• You will typically receive an offer below market value.
• Some cash buyers may offer less than the home’s true worth, so it’s essential to research reputable buyers.

This option is ideal if you need to liquidate the asset quickly, settle an estate, or avoid the hassle of managing repairs.

2. Make Necessary Repairs and Sell Traditionally

If you have the time and resources, making repairs before selling the house on the open market can increase its value.

✅ Pros:

• A well-maintained home will attract more buyers.
• Potential to sell for a higher price.
• Opportunity to increase the home’s marketability through updates and staging.

❌ Cons:

• Requires upfront investment for repairs, which can be costly.
• May take months to complete renovations and list the home.
• No guarantee that the investment in repairs will yield a significant return.

If you choose this route, prioritize high-impact renovations, such as fixing structural issues, updating kitchens and bathrooms, and improving curb appeal.

3. Sell to a Real Estate Investor

Real estate investors specialize in purchasing distressed properties, making this a viable option for homes in need of major repairs.

✅ Pros:

• Investors often buy properties quickly and in as-is condition.
• Some investors offer flexible payment options.
• Can be a middle-ground solution between selling to a cash buyer and listing traditionally.

❌ Cons:

• Investors aim to make a profit, so their offers may still be lower than market value.
• Some investors may try to negotiate aggressively, so be prepared.

This option is suitable for homeowners who want a balance between speed and return on investment.

4. Consider a Short Sale (If Applicable)

A short sale may be an option if the inherited property has a mortgage balance that exceeds its market value.

✅ Pros:

• Allows the home to be sold for less than the mortgage balance with lender approval.
• Can help avoid foreclosure if the deceased homeowner still owed money on the property.

❌ Cons:

• Requires approval from the lender, which can be a lengthy process.
• The process is complex and may require the assistance of a real estate professional or attorney.

Short sales are only applicable when there is still outstanding debt on the home, and they require patience and careful negotiation with the lender.

Steps to Take When Selling an Inherited House That Needs Repairs

1. Assess the Property’s Condition

• Conduct a thorough inspection to identify necessary repairs.
• Obtain quotes from contractors to determine the potential costs.
• Decide whether repairs are worth the investment based on market conditions.

2. Determine Your Budget and Timeline

• Consider how much you are willing to spend on repairs, if any.
• Set a timeline based on how quickly you need to sell.

3. Consult with a Real Estate Professional

• A knowledgeable agent can help assess the property’s value and market it effectively.
• An experienced agent can also connect you with cash buyers or investors.
• They can guide you on whether making repairs is financially worthwhile.

4. Understand the Probate Process

• If the property is still in probate, ensure that all legal requirements are met.
• Consult a probate attorney if necessary to clarify legal obligations.

5. Market the Property Effectively

• If selling traditionally, highlight the home’s potential rather than its flaws.
• Use professional photos and online listings to reach a wider audience.
• If selling to a cash buyer, they will typically handle the marketing process.

Tips for a Successful Sale

✅ Be Transparent: Always disclose known defects and issues to potential buyers to avoid legal complications.

✅ Price Strategically: Consider repair costs when setting the sale price. If selling as-is, price the home competitively to attract buyers.

✅ Negotiate Effectively: If you receive multiple offers, compare not just the price but also the terms—some buyers may offer a higher price but have financing contingencies that can delay closing.

✅ Prioritize Communication: Whether selling with siblings, co-owners, or an estate executor, clear communication is essential to avoid misunderstandings and delays.