- Selling a rundown property in Los Angeles can be stressful and time consuming
- If your property needs more than a cosmetic rehab, the money you put into repairs and upgrades may not pay off
- Depending on the condition of the property, it may make more sense to not make any repairs and sell AS-IS to a direct buyer who will make their own house repairs
Selling a rundown property in Los Angeles can seem challenging, overwhelming, and stressful for homeowners. There may be a laundry list of repairs that either your or your agent has created. Should you make repairs and which ones should you make? Should you take the time to fix it up or upgrade a few things? If you decide to upgrade some rooms, what designs would match with the current house design? Or should you try to sell your house as-is? Many homeowners in this situation don’t realize that there are actually many options available and the process can be simple, stress-free, and rewarding. Here are a few things you need to know about selling a rundown property in Los Angeles.
You May Not See a Return on Your Repairs
Some homeowners are tempted to spend a fortune fixing up the house, hoping to get their money back when the property sells. Beyond a light rehab, it is unlikely that you will see a return on your medium to full rehabs. So before you pull out that credit card, think about how much you have already spent on the home. Also, keep in mind that some repairs simply don’t offer an equal return.
For example, spending money replacing a worn carpet may sound like a good idea, until you scare all of your buyers away with your green shag. In some cases, you may be leaving some things as-is, allowing your potential buyer to modify them according to their taste.
Light Rehab, Medium Rehab, or a Full Rehab?
Not every property that needs some repairs would be considered “rundown”, so we recommend that you determine which of these categories your home falls into: light rehab, medium rehab, or full rehab.
Light Rehab (also known as “cosmetic rehab)
With a light rehab, most of the work would be cosmetic which includes some painting/staining, flooring, and finishing. The purpose of a light rehab is to leave things in place, but freshen them up. Paint, updating cabinets with new stain and/or hardware, new carpet, refinished hardwood flooring, and an overall deep cleaning result in a home that looks better and more appealing. Light rehab can also include minor drywall patching, upgrading fixtures (lights, faucets, etc.) and doing a landscaping refresh. On the exterior, a light rehab would entail some landscaping additions such as clean-up, tree trimming, lawn mowing, and some plants or flowers.
In the Los Angeles location, a light rehab can be completed for anywhere between $5k and $10k, depending on how much painting and hardware replacement is desired.
Medium Rehab
With a medium rehab, you will be doing more than just cosmetic work as noted above. The kitchens and bathrooms may be very old and outdated, so whole bathrooms and the whole kitchens may need to be remodeled. That means new fixtures (plumbing and light), new tile, new tub/shower, new sinks, new paint and more. Windows and doors may also need complete replacement due to age or functionality issues.
In the Los Angeles location, a medium rehab can run upwards of $10k for for each small bathroom remodel, and upwards to $50k for a starting kitchen remodel.
Full Rehab
With a full rehab, everything is on the table in terms of repairs/replacing things in a home, even as far as the roof, structure, foundation, and HVAC work. Homes like this have a lot of deferred maintenance which has created a negative impact on the home’s value. With deferred maintenance like roof leaks and plumbing leaks that also means possible rotted wood and rotted floor boards that need replacing. Outside of the frame and envelope of the house everything may need to be addressed in a home requiring a full rehab.
In the Los Angeles location, a full rehab can run between $150k and $130k. To estimate, multiply $250 times your existing square feet of living space. This does not include moving walls or adding square footage. At this point, finishing the project and beginning the process of selling your home might be another 1 to 2 years away.
You’ll Need to Disclose Everything
Do not ever attempt to conceal problems that may affect the home’s value or the quality of living for your buyer. You will need to be upfront about any problems the home has or you may find yourself on the hook for damages. Depending on where the property is located, a few common things you may need to disclose include…
- The appearance of toxic chemicals or lead based paint in the home
- A death or violent crime
- Any health hazards in or around the home
- Mold, water or fire damage
- A list of needed repairs
- A summary of any neighborhood problems or nuisances
- Prior inspection reports
Not disclosing problems is a violation of the law, and puts you at risk of being sued for fraud or breach of contract. It will also put your home inspector on the spot as these are problems that should have been noted in their report. When selling a rundown property in Los Angeles, make sure you are telling your potential buyers everything you know about the property. It will help you avoid problems down the road and give you a clear conscience when you go to sleep at night.
You’ll Need to Find the Right Buyers
A rundown property, especially in Los Angeles isn’t going to appeal to everyone who is looking for a property on the MLS. There are design standards here. It takes a special person to want to buy a house that needs work. Listing on the MLS isn’t always the best route as it is filled with pretty pictures of move-in-ready homes, waiting for potential buyers who are looking for their 1st or next dream home. A rundown home is likely to get overshadowed by the competition, meaning you’ll be on the hook for holding costs for a longer period of time. When marketing a rundown home for sale, you’ll need to appeal to those looking for a fixer-upper. Fair Sale Homes can help you do that via a listing or a direct sale. By finding the right buyers for your unwanted property in Los Angeles, you will be able to sell in less time and for more money.
There Are Options Other Than Listing
You don’t ACTUALLY need to list your house on the MLS in order to sell it. In fact, there are ways that can be more beneficial to homeowners other than a traditional listing. Fair Sale Homes helps our clients by offering listing services and assisting if they would prefer a direct sale. A direct sale is simple…
- First, we will discuss your property, letting you know a ballpark price
- Then we will make an appointment to view the home in person
- From there we will put together a formal offer, without any hidden costs or fees
- Finally, we will facilitate the property closing on the day of your choice – you won’t have to wait for your money, nor is there any pressure on you to move out right away
Dealing with a rundown property is stressful enough, but it doesn’t have to be. We are in the business of buying properties of all shapes, sizes, and conditions. Our goal is to help you evaluate your options so that you can sell your house in the best way possible. There are many ways to sell a property in Los Angeles. Fair Sale Homes not only provides traditional listing services to our clients, but we also offer ways to sell directly. Our creative solutions will help you sell any rundown property while experiencing a straightforward and stress-free home-selling process.
Do you need to sell a rundown house in Los Angeles? If so, Fair Sale Homes can help. We offer many ways to help Los Angeles homeowners sell their unwanted property. Give us a call today to learn more about us and the creative solutions we can offer homeowners. We are happy to answer any questions you have about selling a rundown property in Los Angeles! (626) 863-7006