Selling a House in Poor Condition: 3 Legit Options for 2025

Options for selling a house in poor condition | Is your home's condition really 'poor'? | Should you make repairs?

If you need to sell a house, but are concerned about its condition, rest assured that you have options — even without making any repairs.

Plenty of real estate agents and investors specialize in helping homeowners with houses in less-than-ideal condition — and chances are, the situation's not as bad as you think.

"No matter how bad your house is, we’ve seen worse," says Minnesota-based real estate broker Bryan Clapper, whose specialization in probate real estate means he often works with sellers who have inherited outdated or otherwise imperfect homes.

From selling your house as is to partnering with an investor, here are your options for selling a home in poor condition, plus some key considerations for homeowners to keep in mind.

Options for selling a house in poor condition

1. Sell as is

When looking to offload a property in poor condition, the first option homeowners often think of is selling to a property investor promising to pay cash and close fast, regardless of the home's condition. However, selling as is with a realtor is often the more lucrative option.

"Selling as is doesn’t necessarily mean calling a cash-for-homes outfit," advises Clapper. "Plenty of as-is sales happen in a traditional manner through the MLS and those sellers tend to get more money than if they had gone through an investor or wholesaler."

By way of evidence, Clapper's team at Maker Real Estate recently did a study comparing probate properties sold on the area MLS — most often as is — vs. those sold off-market to an investor or wholesaler. They found that, on average, homes sold through the MLS netted sellers $49,000–104,000 more than those sold to an investor. That's after accounting for realtor fees, which average 5–6% of the home sale price.

The benefit of the MLS is that it exposes your listing to a much broader pool of potential buyers — ranging from local investors to traditional buyers looking for a bargain.

"There are many young buyers looking for a home where they can build sweat equity," explains Clapper. Recent research from Real Estate Witch shows that 65% of Millennial home buyers are open to buying a fixer-upper.

However, even if your home is in such a state that it would only be suitable for a cash investor, you're still more likely to create competition with an MLS listing.

⚡Quick Tip If you want to save on realtor fees when selling a house as is, you can often find significant savings through discount brokers or agent finding services offering pre-negotiated rates with vetted local real estate agents. Here are our top recommendations for finding a good realtor at a lower commission rate.

2. Sell to an iBuyer

iBuyers are large companies that make instant cash offers on homes — typically in high-demand markets — to resell them on the MLS. Unlike regular cash buyers, iBuyers only purchase homes in fairly good condition and in major cities.

If you have a home that only needs minor repairs — and you live in an area where iBuyers operate — then selling to one could be a good option. iBuyers can close in less than two weeks and you won’t have to worry about repairs or showings.

In most cases, iBuyers will pay less than fair market value. However, their offers will typically be a lot higher than an investor might pay.

For example, our team recently analyzed 150 homes bought and sold by Opendoor between January 2023 and June 2024. On average, Opendoor sold these homes 40 days later for approximately 5.11% (or $19,373) more than they paid for them. 

Keep in mind that in addition to a potentially below-market sale price, iBuyers charge service fees of about 5%. They also make deductions for the estimated repair costs and needed cosmetic improvements identified during their home inspection.

Reviews for iBuyers like Opendoor and Offerpad indicate that repair estimates are often higher than anticipated, leading to final offers that are much lower than preliminary offers.

⚡Quick Tip An iBuyer's offer is generally good for several days before it expires, so you can always use that time to compare it against pricing estimates from a few different real estate agents to see if it's in the ballpark before accepting. Our analysis of homes bought and sold by Opendoor over the past year showed that 27% sold for less than Opendoor originally paid for them, indicating that Opendoor's valuations are sometimes off in a way that benefits the home seller.

3. Partner with an investor

Cash investors can close incredibly quickly, often in just 1–3 weeks. Many are also willing to cover closing costs and cut agents out of the deal, allowing you to save money on realtor fees.

The catch is that investors typically only offer about 70% of a home’s estimated post-repair value. And while most investors are perfectly legit, there are definitely frauds in the space.

If you have a little wiggle room in your timeline, some investors may be willing to partner with you on more creative solutions, such as novation agreements.

With this type of deal, an investor won’t buy your property outright. Instead, they'll fix the issues needed to get it salable and then list it on the MLS. Once the house sells, the investor will recoup their costs and then split the remaining proceeds — either 50/50 or at some other percentage you agree to upfront.

Mike Bennett, operations manager at Clever Offers, says novation agreements are best for somebody who "wants the convenience of a cash sale, but doesn't want to deal with agents. They don't want to do showings. They don't want to deal with negotiations."

While these types of partnerships can take longer than selling to a cash buyer directly, some sellers may benefit — especially if they're in debt and can't afford to sell at a loss.

⚡Quick Tip Cash offer networks like Clever Offers are a good place to start when looking to sell a home in poor condition. When you're not sure which route to take, their team can show you a variety of options, ranging from direct cash offers from a reliable network of iBuyers and investors to a 7-Day MLS listing targeting cash buyers, giving you the chance to net a higher sale price, fast. Clever Offers is free to home sellers, and it can save you a ton of time on the phone to individual realtors and investors. With your options laid out, you can make a truly informed decision – with absolutely no added fees or obligation to move forward. You can request offers here.

Is your home's condition really 'poor'?

If you're feeling a little iffy about the condition of your house, rest assured you're not alone.  Surveys of American home owners show that approximately 70% are embarrassed by the state of their home when considering selling.[1] But in reality, there are buyers for homes in every condition — whether they're move-in ready or complete teardowns.

That said, the condition of your house may have implications for how you market your house and the types of buyers you target. So let's take a look at the different categories that your house could fall into, as well as who prospective buyers might be.

Uninhabitable

Uninhabitable properties are those that are too dangerous to live in. They may need a "down to the studs" renovation or have to be demolished and rebuilt. Many issues can make a home uninhabitable, but some of the most common are:

• Severely damaged roof
• Major foundational issues
• Significant plumbing problems
• Pest infestation
• Biohazards (i.e., black mold, lead, or asbestos)
• Fire or smoke damage
• Flooding
• Faulty electrical wiring

Most buyers won't be able to get financing for an uninhabitable home, since the property itself acts as collateral for a home loan. Hypothetically speaking, if a buyer was approved for a mortgage on a teardown, but then defaulted after the house was demolished, the lender wouldn’t have any collateral that it could sell in order to make back the loan.

Because of these financing issues, uninhabitable homes are usually bought by cash buyers, such as private investors and "we buy houses" companies.

» LEARN: The best companies that buy houses for cash

In need of major repairs

Many homes in need of significant repairs can still be lived in, but may still have a limited buyer pool due to the scope and cost of the work needed. Some of the repairs considered major include:

• Flooring needing replacement
• Minor foundation issues
• Electrical issues
• Plumbing problems
• Damaged roof
• HVAC issues
• Hoarding and clutter
• Broken windows and doors

Traditional financing can still be a problem for buyers considering a home needing major repairs, since lenders see them as a risky investment. So, cash buyers will still be your most likely audience.

However, plenty of investors will see the opportunity in being able to add value to this type of home.

» LEARN: How much will an investor pay for my house?

In need of significant cleaning or cosmetic updates

Homes that fall into this type of category don’t have anything that makes them unsuitable for living in. They just need some work to address normal wear and tear, an outdated design, or possibly excessive dirt or clutter. Items that buyers might want to address with this type of home include:

• Outdated kitchen
• Outdated bathroom
• Dirt and clutter
• Worn flooring or carpet
• Unattractive paint jobs
• Stained, scratched, or marked up walls
• Old, but functioning appliances
• Poorly maintained landscaping

"Something as simple as weird paint or carpet colors could prevent a buyer looking for something move-in ready from placing an offer on your home," says Sharlys Leszczuk, broker at Windermere West LLC. However, she also notes that in markets where inventory is low, buyers are often willing to look beyond minor issues.

If your home is uninhabitable and likely to be demolished and rebuilt by the buyer, then investing in repairs makes little sense. But if it simply needs some updating, it may be worth investing a little in the presentation to ensure you're showing the home in its best light. That will give you the best chance of attracting traditional buyers, who will almost certainly offer more than an investor internet on making a quick profit.

"Sometimes all it takes is some new paint and a deep clean," says realtor Suzanne Seini. In her personal experience, investments in lighting, staging, cleaning, and other touchups will often pay for themselves.

» LEARN: The most important repairs to make before selling

Should you make repairs before selling a house in poor condition?

While a move-in ready house will certainly attract a larger pool of buyers, repairs aren't always worth the investment. In competitive markets, you can often list a house as is and still sell for a decent price — especially if your home is in an area where a lot of revitalization is happening.

If your home does need significant work, and most of the homes around it are move-in ready, you obviously shouldn't expect to get as much money for your house as your neighbors. But think hard before you sink a bunch of money into major repairs. Most home improvements don't offer a dollar for dollar return on investment — and if you're planning to sell, you won't be in the house long enough to make up the cost with additional home price appreciation.

A key factor in deciding whether or not to make repairs before selling is who your buyer is most likely to be. For example, investors generally look for properties with plenty of room for improvement, since they are usually able to get them for a bargain and add value by fixing them up. They can also generally make repairs faster and cheaper than the average homeowner, so best to leave the repairs to them.

That said, if your home is in decent condition except for one or two issues that might scare off traditional buyers, the issues may be worth addressing in order to expand your buyer pool.

Here's what to consider before springing for repairs.

Weigh doing the work yourself against offering a concession

When it comes to addressing repairs before selling, you have a couple of different options: Complete the work yourself or offer a concession to cover the costs of major repairs upfront.

Before taking on any repairs yourself, you'll want to be sure the expense is justified by a higher sale price. You can start by getting quotes from local contractors for any major repairs needed. Then, consult with a local listing agent to see how much value those repairs will add based on comparable homes in the area. Even if you don't complete the repairs, these steps will help you with negotiations later on.

The other option for addressing needed repairs is to disclose the defects upfront and offer the buyer a closing credit to cover the cost of fixing them. "A credit can be beneficial for a buyer because they can then go hire the vendor of their choice to complete the work," says realtor Tamar Asken, who's listed among the top 1.5% of agents nationwide.

If you opt for repairs, focus on strategic improvements

Not all repairs are going to get you a good return on your investment. "If opting for repairs, focus on minor yet impactful improvements like painting or fixing obvious defects, suggests As Jave Blackburn, CEO of WeBuyAnyHouseAsIs. "Over-investing in major renovations often doesn’t yield proportional returns."

For maximum value add, sellers should also prioritize essential repairs over cosmetic repairs, advises property investor Martin Orefice. "An outdated, but functional, kitchen is much lower priority than fixing a leaky roof."

If you decide against doing repairs, disclose the issues upfront

Even if you choose to sell your home as is, you'll still need to complete a seller disclosure form detailing all known issues with the property's systems and structure. Failing to do so is more risk than it’s worth.

If the buyer discovers a defect during the inspection, they can walk out of the contract or demand it be renegotiated. Similarly, if the buyer discovers a defect after they’ve purchased the property that the seller knew but didn’t disclose, then the seller could be held liable for the cost of repairing it.

Being transparent not only protects you legally, it also helps you attract buyers willing to take on the necessary work.

Toronto realtor Barry Lebow shares this successful strategy for selling a house in need of work: "I had a professional flier designed and posted all over social media. The heading was, 'This House is a Disaster!' The ad then continued, 'but it is incredible value for someone with vision and who wants to renovate to their own tastes.'"

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