How to Sell a Derelict House

Selling any property can be a challenge, especially if you try and sell it through a traditional estate agent. Things can be made even harder when the house you are trying to sell is derelict. In fact, many people would say you are trying to sell an unsellable house if you attempted to get such a property listed for sale. However, there is a market for them. Property investors see derelict property as a great opportunity for snapping up a bargain that they can then flip for a profit once they’ve done some work on it.

The biggest problem is that the avenues open to sellers are limited, and even with three ways to sell, there can still be challenges. The ways to sell a derelict house include:

• Via an estate agent – Not all estate agents will provide this service though.
• At auction – A quick way to sell but not always guaranteed.
• With a cash house buyer – Perhaps the fastest way to sell, and in many cases, the sale is guaranteed.

What is a derelict house?

When you hear the word derelict, you probably think of a house with no roof or missing walls. In property terms, derelict covers a broader range of property problems. It’s normally applied to issues that make a home uninhabitable and in a state of disrepair. Typically abandoned for long periods, these properties could have severe structural issues that could even lead to collapse if not reinforced. Signs of a derelict property include:

• Crumbling walls (external and internal)
• No sign of a roof, or a roof showing extreme levels of damage.
• Signs of mould and rot.
• Failing or non-functioning heating, plumbing and electrics.
• Missing windows and doors.

Why are derelict houses hard to sell?

Derelict houses prove to be a challenge to sell if you attempt it via the traditional market. Via auction, challenges remain but you should have more luck than if trying to use your high street estate agent. It’s only when you try and sell with a cash house buyer that you can remain confident that a quick and easy sale is possible. Here’s why other routes to sale may prove more challenging.

Reluctant estate agents

Most estate agents are trying to sell homes to people who aim to move straight into the property they are buying. This limits the appeal of a derelict home quite significantly. Furthermore, even if a buyer was to see the property as a bargain, the extensive renovation work and its associated costs may be enough to put all but very specialist buyers off. If this is a desired route to sale, any owner of derelict property should look for an estate agent with experience in selling similar properties.

Mortgage issues

Even if an estate agent was happy to list the property for sale, those keen on buying may find a mortgage almost impossible to come by. Lenders want to know that their investment complies with regulations and that the risk is also as low as possible. A derelict house is unlikely to comply with the rules or provide a lender with minimal risk.

Auction inconsistency

An auction can be a great way to get a fast sale. They often target investors and renovators looking for a new property project. However, knowing if your target buyers are attending a specific auction, whether your property ticks the boxes of any bidders or whether you’ll even get a sale is never guaranteed. With the fees you’ll need to pay too, you could find yourself constantly spending money listing the property at auction and never get a sale.

What is the best way to sell derelict property?

The safest way to ensure you sell a derelict property is via a cash house buying company. In most cases, the property is guaranteed to sell, regardless of condition, type, or location. At Sell House Fast, we buy any house. You won’t get the true asking price of the property but without all the complexities the other sales methods involve, it’s a seamless way to sell, without cost, and within a timeframe that suits you. With no chains, there is no fear of the sale collapsing at the last minute and with proof of funds, you can rest assured the buyer will proceed with the purchase.

Can I sell a derelict property as is?

With a cash house buyer, you certainly can. With estate agents or auction houses, it’s less likely. There will be certain obligations you need to fulfil that bring the house up to a standard that sees a lender happy to lend to a potential buyer. In some cases, owners look to fix the major safety issues but leave all cosmetic issues to the buyer. This could make it easier to sell via an estate agent or auction house, but the pool of buyers is likely to remain quite small.

Tips for selling derelict property

If you are keen on selling derelict property via an auction house or estate agent, be prepared for a lot of hard work and a potentially slow sales process. It might be worth it, but you should remain aware that the money spent on fixing it up and making it more appealing may cost a significant sum and not alter the overall value significantly.

• Repair all vital safety features.
• Have a condition assessment completed by a surveyor.
• Improve the kerb appeal as best as you can.
• Take photos to highlight areas in disrepair and those that have been restored (if any).
• Highlight its potential to prospective to buyers.
• Have all inspection reports and repair information available for potential buyers.
• Price it fairly based on current condition, future problems and how the housing market is performing.
• Ensure you promote the sale to the correct audience of buyers.
• Make sure that all known issues are fully disclosed.

Selling derelict property comes with challenges but many of those can be avoided by speaking to Sell House Fast. Our team of expert property buyers make your sale quick, easy and fee-free. We make our offer, and if you accept, everything is set in motion to ensure a rapid sale is completed on your terms. Call us today to find out more.