Selling an Ugly House in Texas? Here's How to Turn an Eyesore into Cash Fast!

Have you ever walked into a house and felt your heart sink? I have. As a homeowner, I faced the daunting task of selling a property that was, to put it kindly, an eyesore.

It was just plain ugly! Hideous in fact.

The peeling paint, overgrown yard, and outdated interiors made me wonder if anyone would ever want to call it home. But I learned that even the ugliest house can be a diamond in the rough.

Selling an ugly house might seem daunting, but it's can be far from it. In fact, the current real estate landscape offers unique opportunities for homeowners looking to sell properties that need some TLC. With the right approach, you can turn that fixer-upper into fast cash, even in a competitive market. Hopefully, by the end of this article, you will be ready to sell your ugly house with confidence.

There are many ways to sell an ugly house. If you're reading this, I imagine you are not interested in fixing it up and want to just sell your home quickly. Perfect! We are going to stick with that strategy in this article.

The key lies in understanding the real estate market and knowing how to position your property. Cash buyers and investors are often on the lookout for as-is properties, seeing potential where others see problems. By tapping into this market, you can sell your ugly house quickly and without the stress of extensive renovations.

Key Takeaways

• Ugly houses can sell fast in the current Texas real estate market
• You can sell your ugly house when nobody wants it
• Cash buyers and investors are interested in as-is properties
• Transparency about property condition is crucial
• Strategic pricing can attract buyers looking for fixer-uppers
• Offering repair cost deductions can be an effective selling strategy

Understanding the Challenges of Selling an Ugly House

Selling a house that's not perfect can be hard. In Texas, ugly houses face special challenges. We'll look at what makes a house "ugly" to make sure we are on the same page and its effect on its value.

Common Issues That Make a House "Ugly"

An ugly house often has:

• Outdated interiors
• Structural problems
• Poor curb appeal
• Significant maintenance needs
• Foundation problems
• Water or fire damage
• Cracks in the walls
• Junk inside and outside

Impact on Market Value

According to Neighborly, "If buyers see a home with chipped or faded paint, worn carpets, broken fixtures or blinds, sagging gutters, or missing shingles, such issues are likely to drive buyers away and make the home far less competitive."

The state of an ugly house affects its market value a lot. There is no way around that. Homes needing lots of repairs sell for less. Often, the cost of repairs takes away from the property's potential value.

"Properties categorized as 'ugly' typically require significant maintenance, possess outdated or problematic features, or are in a state of disrepair, impacting their overall value." - Danny Johnson, House Buyer in San Antonio, TX

We know trying to sell an ugly home can be frustrating, especially when you want to sell fast. But don't worry! We are going to show you how to sell your ugly house without making any repairs.

Why Traditional Buyers Hesitate

Traditional buyers often don't want ugly houses. They worry about the big repairs needed and getting mortgages for properties in bad condition. Frankly, most banks won't lend on these types of houses. Buyers might find it hard to see beyond the current state to the home's future, regardless of what you might see on those house hunting shows on HGTV.

According to Veronica Dagher at the Wall Street Journal, "Real-estate agents say buyers right now seem in no mood to take on the additional costs and headaches of major renovation projects. There is no national data tracking how much quicker renovated homes sell than unrenovated ones, but there are signs of this change. It is one reason sellers are receiving an average of three offers now, compared with around six a year ago, according to the National Association of Realtors."

Selling an Ugly House: Steps for a Fast Cash Sale

Ok. Now for the meat and potatoes.

Having to sell a house in poor condition can be a hassle, but you can sell quickly with the right plan. These are the exact steps to take to sell your house fast even in its current condition.

If you are facing foreclosure, no problem. These steps will help as long as you still have at least a week before the house goes to auction.

Step 1: Pricing Your Ugly House

When you need to sell fast, the price is going to be the biggest lever you have. Price it fairly, considering repairs it needs. This draws in investors and house flippers who want to fix it up.

It is best to have a price in mind. Do not base this price on how much you 'need'. Buyers are not interested in what you feel you need to make. They are only interested in what value the house has to them. Sometimes we wish it weren't that way, but there is no changing it. It's best to be realistic to sell fast.

People will buy ugly properties for the right price. This will be determined by what other similar houses are selling for in the area, known as 'comps'. Try to find at least.3 that sold within the last 6 months and make sure they were in great shape.

The average of those 3 comps should give you what is known as the ARV. The ARV is the after repaired value. You will then multiply the ARV by 70% and then subtract the estimated cost to repair the house. This is the amount most cash house buyers are going to want to pay to get the house.

Here's an example:

Average of 3 comps shows an ARV of $200,000.

70% of $200,000 is $140,000.

Let's say the house needs a lot of work. This house in poor condition will require a $30,000 remodel. To find out selling price, we will take $140,000 and subtract $30,000 to get $110,000. This is the price to expect to get if you want to sell the house fast.

Step 2: Finding Cash Buyers

Real estate wholesalers and house flippers buy homes fast for cash. As was mentioned previously, they buy for less than market value. This method can result in a speedy, easy deal. Many cash buyers offer a fair price and can close in as little as a week.

Maybe you've seen advertising like this:

"We buy houses in any condition. Get a cash offer within 24 hours!"

These are who you are looking for. These are the companies that buy houses.

The best way to find them is to do a Google search. You can search for things like 'We Buy Houses Cash San Antonio' and 'Sell My House for Cash San Antonio'. Obviously you will want to use your location if you are not in San Antonio, TX.

If you weren't aware, you are actually on the website of a Texas cash house buyer: Danny Buys Houses. So, you are already part of the way there!

Step 3: Get Cash Offers

According to Kacie Goff at Bankrate, "Price matters, of course, but a homebuyer’s offer is a lot more than just a number. When you sell your house, there are contingencies, timelines and financing to consider."

Be sure to reach out to several cash house buyers. This way you will have multiple offers to compare and choose from. Remember, sometimes the one with the highest offer might not be the best. Read on to learn how to make sure you choose the right house buying company.

Pros and Cons of Selling an Ugly House to Cash House Buyers

Selling your house for cash can be appealing, especially for ugly properties. Cash home buyers offer a quick way to sell. Let's look at the good and bad sides of this choice.

One big plus is how fast it works. Traditional sales can take up to 75 to 120 days, but cash deals are much quicker, closing in 7 to 10 days. This means no need for repairs, inspections, or appraisals, saving time and money.

Another benefit is lower closing costs. Cash sales often have fewer fees, which can save sellers 9% to 10% of the sale price. You also skip realtor commissions, which are usually 5% to 6%.

• Quick closing process
• No need for repairs or renovations
• Reduced closing costs
• Flexible move-out dates

But, there are downsides too. Cash buyers usually offer less than the market value, between 50% to 70%. This lower price is the trade-off for a quick, easy sale. It's important to find reputable buyers to avoid scams.

"We received a fair cash offer and closed in just two weeks. It was a relief to sell our fixer-upper without any repairs." - John W., San Antonio, TX

The choice depends on what you value most. If you need quick cash and don't want the usual selling hassle, cash home buyers could be for you. Just remember, you'll get a lower sale price for the convenience and speed.

Can You Sell a House with Foundation Issues in Texas?

Selling an old house with foundation problems in Texas can be challenging. The real estate market in cities like Houston, San Antonio, and Austin often sees homes with these issues. In fact, about 1 in 4 houses will face structural damage at some point.

Foundation issues can lower a home's value by up to 15% during an appraisal. Repairs can cost between $4,000 and $10,000, sometimes reaching $50,000. This expense often scares off traditional buyers and mortgage lenders.

Common foundation problems in Texas include:

• Bowing foundation ($1,000-$15,000)
• Crumbling foundation ($1,000-$15,000)
• Foundation erosion ($1,000-$10,000)
• Foundation leak ($2,000-$10,000)
• Horizontal foundation crack ($4,000-$15,000)
• Sinking/shifting foundation ($1,000-$15,000)

Despite these challenges, selling a house with foundation issues in Texas is possible. Cash buyers and investors often see these properties as opportunities. They can close deals quickly, sometimes in as little as three weeks, without requiring repairs.

If you're considering selling a house with foundation problems in Texas, get a professional assessment first. This will help you understand the extent of the issues and price your home accordingly. Remember, Texas law requires disclosure of known foundation problems to potential buyers.

Avoid Getting Burned: Steps to Vet Cash Buyers

We once worked with a seller name Janet in San Antonio, TX that contact us because she needed to sell her house fast. She was distraught because another cash buyer had contracted to buy her house and then tried to negotiate a lower price after the fact. Ultimately, that buyer could not close the deal.

Janet contacted us because of our BBB Accreditation and reviews. We gave her a fair price and closed on the house within a week. Janet was thrilled and wished she had gone with us in the first place.

Let's go over how to properly vet local cash home buyers so you do not make the same mistake.

Finding Legitimate Local Home Buyers

First, search the internet for reputable companies with good reviews and a good Better Business Bureau rating. Real estate pros can also suggest trustworthy cash buyers.

You can even search BBB.org in your area for a cash house buyer.

How long have they been in business?

Check the company's history. If they just started the business, you might want to avoid them. House buying requires large funding. Many new business just do not have the funds to ensure a closing will happen.

Danny Buys Houses has been in business for over 20 years. It is possible to find similar companies in most areas.

Speak to Their Title Company or Attorney

This one is a pro tip. Ask them for contact information for who closes their deals. This will be a title company or real estate attorney that handles the paperwork for the deal. If they do not have one, avoid them at all costs.

Contact this closer and ask them about the company's track record. Have they had deals that fell through? Have they closed all their deals in a timely manner?

This can help almost guarantee that you are working with someone that will get the job done.

Give us a call! We'd be glad to share with you who closes our deals.

Sell Your Ugly House For Cash Today

Selling an ugly house to cash buyers is a smart choice in today's market. With 29% of home sales in January being all-cash deals, it's clear cash transactions are in demand.

If you would like to get a no-obligation cash offer for your ugly home, give us a call. Alternatively, you can submit the fast cash offer form and we will get in touch with you very quickly (usually within minutes).