What happens when you sell your house for cash and the property needs repairs?
Selling a house isn't always as simple as putting it on the market and waiting for a buyer. And contacting a home-buying company doesn't necessarily mean the process is as simple as getting an offer and closing right away.
What happens when your house needs major repairs? What if there's a foundation problem, an outdated roof, or other issues that could make it difficult to sell through a traditional listing?
We recently worked with a Virginia homeowner who found herself in exactly that situation.
The home needed attention, including a foundation repair that eventually became an important part of the buyer's financing process. What started as a straightforward plan became a more complicated transaction involving the seller, buyer, lender, title company, and us at Sell Simpli.
But the buyer didn’t walk away, and the deal didn't fall apart. Here's what happened and what other homeowners can learn from the experience.
A Home That Needed Some Work
The homeowner wanted to sell the property without taking on a major repair project herself. The house needed attention, and making those repairs while also preparing for a move would have added another layer of difficulty.
Rather than buying the property and immediately reselling it, we partnered with the homeowner to create a solution that addressed both her needs and the property's condition.
We partnered with the homeowner to solve both problems.
As part of the partnership, we provided funds to help her relocate before closing. This allowed her to move forward without having to wait for the sale to be completed, while allowing us to address the property's condition and prepare it for the retail market.
The goal was to give the homeowner a way to move forward while also improving the property's marketability and creating an opportunity for a stronger outcome from the sale.
Then the Foundation Issue Came Up
During the buyer's due diligence and lender process, a significant foundation concern came up.
Several estimates were obtained for the work, ranging from approximately $5,000 to $12,000.
The buyer was still committed to the house. The problem was that the lender needed to be comfortable with how and when the foundation work would be completed.
One option was to see whether the lender would allow the buyer to complete the repairs after closing. A 30- or 45-day post-closing repair period was discussed.
But there was a problem.
The contractor expected the permitting process to take several weeks, and the lender's underwriter wasn't comfortable with that timeline.
The Closing Had to be Delayed
At this point, there was a real possibility that the original closing date wouldn't work.
But the buyer wasn't walking away.
The lender began working toward a renovation-loan structure that would allow the foundation work to be addressed as part of the financing.
That meant the buyer's financing changed and the interest rate wasn't as favorable as the original loan, but the buyer still wanted the house.
The closing date was extended while the new financing was worked out.
During that time, the seller, buyer, lender, title company, listing agent, and our team continued working through the details.
Finally, We Got to Closing
Once the financing was sorted out, the title company updated the payoff figures and settlement statement, and the parties worked through the final closing documents.
The seller completed her signing, the buyer completed the lender's signing, and the transaction ultimately made it through closing.
What started as a sale involving a property that needed significant attention had required some unexpected changes along the way. But by working together and adapting when the original plan no longer worked, the parties were able to get to the closing table.
What does this mean if your house needs repairs?
A house doesn't necessarily need to be perfect before you can sell it. But the type of repairs, the condition of the property, the buyer, and the buyer's financing can all affect how the sale comes together.
In this case, the foundation issue didn't prevent the homeowner from selling, but it did affect the buyer's financing and the closing timeline.
In this case, the homeowner didn't have to take on the repairs and wait for the work to be completed before moving forward. Our partnership gave her funds to relocate while we worked through the property's condition and prepared it for the retail market.
That's an important distinction. Selling a house that needs repairs doesn't always mean the process will be quick or simple. It means you may need to find a solution that works for the property and the people involved.
What the Seller Had to Say
Every situation is different, but we think the best way to understand what the experience was like is to hear directly from the homeowner.
Here's what the seller shared about working with Sell Simpli:
SELL SIMPLI has been wonderful. They have helped me every step of the way. This was not easy for me, as I have lived in my house for 25 years. I got lucky finding Sell Simpli. They did everything they said they were going to do and more. Very honest and reliable. I couldn't be happier.
Frequently Asked Questions
Can I sell a house that needs major repairs?
Yes. Homeowners can sell properties that need repairs, but the available options and the process can vary depending on the property's condition, the buyer, financing, title, and other circumstances.
Can I sell a house with foundation problems? Potentially, yes. Foundation problems can affect the type of buyer interested in the property and can also affect financing. In this case, the foundation issue became part of the buyer's financing process and ultimately required a different financing approach.
Do I have to fix my house before selling it? Not necessarily. Some buyers may purchase properties as-is, while other transactions may require certain repairs depending on the buyer and financing involved.
Will a buyer's lender affect my closing?
It can. If the buyer is using financing, the lender may have requirements that affect the property, repairs, appraisal, or closing timeline.
Does selling to a cash buyer mean I can avoid all problems?
Not necessarily. A cash buyer doesn't automatically mean every transaction is simple or immediate. Each property and transaction is different.
