Do you own an old, run-down house in Phoenix that you no longer want to own? Just because the house needs some work, doesn’t mean that you have to feel stuck with it for any longer. You can sell your house in Phoenix, and receive a great price for it! Learn how to sell your house with code violations in our latest post!
If your property is in need of major repairs, it can be difficult to know how to sell it. Your pool of potential buyers will inevitably be much smaller so finding the right buyer can take longer than a house that is move-in ready. However, just because your house needs some work that you don’t wish to do, doesn’t mean that you should have to sacrifice on price or feel as if you are giving the house away. Below are some of our best tips for selling your house with code violations in Phoenix!
Can You Sell a House with Code Violations?
In short, yes, you can sell a house with code violations. However, either you or the buyer will need to bring the property up to code before the final sale if you want to avoid fines. The reason being is because most mortgage lenders won’t approve a loan for a house with significant code violations.
The easiest way is to handle the problem independently, but you’ll need to cover the expenses. You could try and negotiate with the buyer by lowering your asking price, but most buyers will likely call the deal off if they have to put in the work.
Try to figure out why your home has code violations and calculate the cost to resolve them. If the fixes are not too expensive, they will probably be worth repairing yourself. If it’s going to cost a lot, you can consider finding a cash buyer.
Are You Required to Bring Anything up to Code Before Selling Your House?
Most homes were code-compliant at one point. However, local city codes are constantly changing, and not every property can keep up. In most places, you’ll need to bring your home up to code if it’s at risk of causing health and safety concerns. Neglecting to do so could result in expensive fines.
Local city jurisdictions have their own requirements for sellers to bring a house up to code before selling. For example, you may need to replace lightbulbs in closets so that the bulbs are fully enclosed. Most of these upgrades are easy and relatively inexpensive.
If you need to sell a home with code violations, it’s best to have a thorough home inspection to see if the issues are an easy fix. Most states legally obligate the seller to disclose any code violations in the sales agreement before selling the property.
How to Know Which Is Required in Your Area?
You’ll have to check with your local city jurisdiction for the specifics of which building codes you need to meet. The most common code violations that typically require repairs are:
- Electrical Panels. Many homes (especially older ones) have outdated electrical systems. Not only are they inefficient, but they can also be dangerous for inhabitants. As a result, most mortgage providers require that the seller upgrades their electrical systems to be code-compliant before listing their homes for sale.
- Plumbing Issues. Faulty plumbing can lead to a wide variety of problems for a homeowner. Water damage can render a home unlivable if it gets too severe. The seller will likely need to conduct a home inspection to ensure all plumbing systems are working correctly.
- Pests. A home infested with pests would naturally be extremely difficult to list for sale. Since they can cause safety and health problems, pests are a serious code violation. The seller will need to clear the pests from the property if they ever want to list it on the market.
Fix the Problem Yourself
Above, we mention that fixing the problem yourself is typically the easiest route to go. While you’ll need to spend the money, it will be much easier to sell your house once it’s up to code.
Some code violations are easy and cheap to fix. All you may need to do is install smoke alarms outside your bedrooms. If you have an electrical or plumbing issue, it can be a bit more expensive to fix. However, you won’t need to lower your asking price (see below).
Lower Your Asking Price
If the seller doesn’t want to fix the code violations on their own, it will be on the buyer. If the issues are minor, it may not be challenging for the seller to convince someone to cover the costs. However, any maintenance may encourage them to walk away from the deal.
One way you can convince them of the sale is to lower your asking price. Setting a lower price will give them the additional cash they need to make the home up to code. That said, you may still receive a lot of flak from potential buyers.
What’s more, the buyer may have difficulty securing a mortgage if the house has code violations. This option is usually only a good idea if the repairs don’t require much money and are easy to fix.
Find a Cash Buyer
If you want to list your property as it is, the best way is to find a cash buyer. Since they won’t need a mortgage, they can move into the property right away and handle all the necessary repairs.
With the assistance of a real estate agent, you can list your home on the open market. However, finding a reliable cash buyer can be tricky. Not everyone has the financial position to purchase a home outright, especially if your property value is high.
That said, you and your real estate agent can try to create some attractive terms that would encourage cash buyers to give your property a shot.
Estimating Repair Costs
If your house needs a lot of work, you’ll want to do some estimates so you know what you’re working with before attempting to sell your property in Phoenix. Do you know how much it will cost to make the house livable for your potential buyers? If you don’t know these numbers, it will be impossible to correctly price the house for sale or negotiate when it comes to selling your house with code violations in Phoenix. If you can’t do the estimations yourself, hire a contractor to help you determine the true cost of your code violations.
Finding The Right Buyers
Not everyone is in the market for a fixer-upper property, especially when there are major repairs required. Finding the right buyers can take some time, especially when you choose to list your property with a Phoenix real estate agent. When trying to sell a house with code violations in Phoenix, your best bet will likely be to work with a real estate investor or direct buyer.
Price The House To Sell
If you are trying to sell a house with code violations to a traditional buyer in Phoenix, it will need to be priced to sell. If the problems with the property are severe, many lenders won’t finance a loan for the property, so you may need to accept cash offers only. Before you list the property or begin the process of selling it on your own, find out what we can offer you! Our background and experience allow up to economically fix up houses, typically at a lower price than if you were to do it on your own. This ultimately saves everyone money in the long run.
Fix The Smaller Things
Even if your house has major code violations you aren’t able to fix, taking some time to fix the smaller things can have a huge impact on a property’s perceived value. You can fix holes in the wall, chipped paint and cracked tiles to instantly make the house look more presentable.
Have The House Cleaned
It may feel silly having the house cleaned if there are code violations throughout the home. However, doing so will make the property more appealing to your potential buyers. Being surrounded by filth can give the property a horrible first impression. Hire a professional cleaning company to make sure no spot is left unturned. It there is dirt in your home, it may very well be overlooked by those who want to buy.
Emphasize The Good
You will be surprised by what some organization and a fresh coat of paint can do for a property. Of course, you will still need to disclose everything going on with the house, but by putting your best foot forward, you can help people to see the potential in the property. Consider hiring a professional cleaning company, stager, and photographer to help make sure the property is being seen in it’s the best light. You can also offer schematics to help your potential buyer imagine what the property could become with a little work. This will also help your buyer get a better idea of what will be required to make the home what they want it to be.
Why You Should Sell Your House Directly
By keeping your house off of the MLS, you won’t have to deal with property showings, marketing, staging, or the continued upkeep. You won’t have to wait around, not knowing when your house will sell or what you will be offered. You won’t have to pay agent commissions, fees, or closing costs. Our selling process is simple, helping you to sell your house fast without any further aggravation… no matter what condition the property it in! Learn more about what you can do to sell your house with code violations in Phoenix, you might be surprised at how simple selling your house can be!