Are you wondering about how to sell an uninhabitable house? This article looks at the problems associated with selling your home if it’s uninhabitable.
According to Colins Dictionary, the word uninhabitable means: If a place is uninhabitable, it is impossible for people to live there, for example because it is dangerous or unhealthy.
Problems with selling your home if it’s uninhabitable
If you are living in a home that is uninhabitable, this will make it extremely difficult to sell in a conventional way. When I say conventional, I mean selling your house to a regular home-buyer using an estate agent.
But more importantly, what makes a home uninhabitable? Plus an even more interesting question perhaps is; how are you managing to live in a house that’s uninhabitable?
Leaving this second question to one side, let’s take a look at what would make a house uninhabitable in the UK:
It is possible to sell an uninhabitable house using an estate agent. This is because many agents have investors and developers on their books that are looking for projects.
You are unlikely to sell to an conventional buyer, as most people want to buy a house and move in. One of the problems with uninhabitable house is they are most extremely difficult to get a mortgage on.
Usually one of the only ways to buy an uninhabitable house is to use cash (i.e. no mortgage). Alternatively, bridging finance can be used to buy this type of house.
But because the house is uninhabitable, this makes it difficult for people who are buying the house to live in. You may be able to live in this type of house, but not many people will be able.
This makes it difficult for someone to buy, unless they are able to buy it and repair it before they move in themselves.
2. Sell at an auction
One of the easiest ways to sell a problem property is at auction. But to sell this type of property at auction, the reserve price needs to be realistic. The reserve price, which is your minimum amount you’ll accept at auction, needs to reflect the state of the property.
You need to think of the likely purchaser. They are likely to be an investor or builder. You need to deduct from the would-be value of your house what it would cost to repair it, plus an amount for profit. Builders or developers are running a business so will need to be able to make a profit on the deal.
3. Advertising and selling it yourself
Selling your house yourself without using an estate agent is possible. But if you’re selling your house and it’s uninhabitable, you need to be realistic with the value you place on it.
Be prepared that you’re going to be offered well below market value on your house. The likely buyers are more likely to be investors or builders looking for a project.
4. Direct to an investor
As the most likely buyer for your derelict house needing major repairs is an investor, why not go direct to one. For example, we will look at homes in need of total repair and refurbishment.
If you would like to find out more, please contact us to discuss how we can help you sell your house.
Is it worth doing up a house before selling?
Finally, you may want to consider doing your house up before selling it. But of course you need to have sufficient funds to carry out the repairs. But by fixing your house up you will recoup what it costs you to do it up, plus an uplift too.
However, if you don’t have the necessary finances to repair your house, you will be left with having to sell it as it is.
I hope you’ve got something from reading this article on how to sell an uninhabitable house
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Also, if you have any questions, please feel free to comment below too. Alternatively, if you need more help, please feel free to contact us on our contact us page here. Or join the discussion and ask your question in the property forum.
How To Sell An Uninhabitable House (Is It Worth Doing Up Before Selling?)
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Article written by Russell Bowyer who has been investing in property since purchasing his first commercial property in the 1990's for his own Chartered Accountancy business. But his first property investment project was to turn an old dilapidated restaurant into a large 5-bed home, which he purchased for £117,500 and sold for £450,000 (to see an "after" photo of the house before it was sold see here: About). Russell owns a number of investment properties, which includes houses, flats and HMO's. More recently he has turned his creative side to investing in property using lease options. His largest lease option deal to date was to acquire 12 properties worth over £2 million for just £12, which means he paid just £1 to acquire each property!
