11th December 2020
Sell your problem property by auction
Selling houses can be a complicated process at the best of times, but there’s no denying the fact that the troubles faced by sellers can increase significantly when the property in question is classified as a ‘problem property’.
Defined as a plot of land, a residential building or commercial lot that suffers from negative issues, problem properties often receive lower price estimations and sell for less on the property market. The issues that affect problem properties are incredibly wide-ranging, so it is important to consider certain factors when evaluating the problem affecting your property. Some of the most important questions to ask yourself are as follows:
- Are the issues affecting my property mild, moderate or severe?
- How much are these issues likely to cost the new owners, should I choose to sell the property in its current condition?
- Can any of the issues be fixed or made less severe prior to selling the property in order to eliminate the stigma that surrounds purchasing a problem property?
Perhaps one of the most important considerations to make before deciding to sell your problem property is how well do you know the problem? Make sure you have researched the issue thoroughly so that you can make fully-informed decisions regarding your sale. To aid you through this learning process, here are three issues that can affect problem properties, and how to approach them to ensure a safe and profitable sale.
How to sell a house with foundational problems
One of the most common issues to arise within problem properties are those that are structural in nature. This type of problem can vary widely, ‘structural problems’ acting as an umbrella term for several issues that can plague a house. These problems can range anywhere from minor issues, such as uneven flooring and cracked walls, to severe subsidence.
There are many causes for structural issues in a property, with poor construction being the most likely culprit. Unsurprisingly, old houses are much more likely to suffer from structural and foundational issues due to the methods used to construct them in comparison to modern standards. Newer builds, which were designed with preventing those flaws in mind, are capable of holding their own weight and shouldn’t be struck with issues of subsidence.
As with anything that worsens over time, the key to fighting and fixing structural issues is to catch them early. Keeping an eye out for signs of subsidence, such as sticking doors and windows, bulging walls and cracks along window sills, will definitely save you both time and money in the long run.
While structural issues are known for slowing down the sales of properties on the open market, as potential buyers organise surveys to assess the condition of the house and use the results to either negotiate a lower price or drop out of the sale entirely, the auction process suffers from no similar setbacks. At SDL Property Auctions we are able to sell any property regardless of its condition so, if your property has foundational problems, it can still be sold by auction without the delays and drop-outs that are so common on the open market.
How to sell a house with old wiring
Outdated wiring is a more common problem than you might expect and, once again, it is an issue that arises most often in older houses. In houses that are over 30 years old, for example, old wiring is almost inevitable as they simply weren’t built and wired to support our modern day infatuation with filling our homes with electricity-hungry appliances.
More often than not, issues with old wiring are minimal and don’t need immediate fixes but, when it comes to electricity, the danger of electrical fire will always remain. To negate this risk, it is recommended that all houses of an advanced age are checked over for code violations by a qualified electrician.
When it comes to selling a property that suffers from, or is likely to suffer from, old wiring, choosing to sell by auction can help. Auctioneers have vast experience selling problem properties and know that selling by auction is the best way to avoid delays caused by negotiations with potential buyers as purchase prices are guaranteed upon sale and won’t be changed after the auction.
How to sell a house with Japanese knotweed
Japanese knotweed is a rapid-spreading, highly invasive type of weed that can cause severe structural damage to a property if it is not identified and treated quickly. The damaging effects of Japanese knotweed are far reaching as it can grow through foundations, block drains and threaten to spread to neighboring properties if left unattended.
This weed is notoriously tricky to get rid of and professional help is recommended as only they can assess the full scale of the problem and tackle it according to specific legislation. It is also a seller’s legal obligation to declare the presence of Japanese knotweed, so the problem is best dealt with sooner rather than later.
As with foundational problems and old wiring, Japanese knotweed can be difficult to sell on the open market. Often, people won’t see past the problem to recognise the overall quality of the property and this can definitely slow down interest. The perfect way to avoid these delays is by choosing to sell by auction, as the service is often fast and reliable, no matter the condition of the property.
How to sell a problem house
Already a difficult type of property to sell, the problem property is facing additional struggles now due to the current state of the property market. With the time it takes to sell a property averaging at 50 days, one of the quickest sale periods for many years, an increase in buyer-appetite post-lockdown and high house prices causing stiff competition between sellers, now is definitely a difficult time to try selling a problem property.
Despite the current climate, however, these problem properties are by no means unsellable. In fact, the best way to sell the increasingly common problem property is by auction. Not only are auctions a faster way of selling your property, they are also considerably more secure, as at SDL Property Auctions, our fall-through rate is almost zero. Furthermore, this method of selling also means you don’t need to fix the problem, as you likely would in order to make a successful sale on the open market, as SDL Property Auctions can sell any type of property in any condition. Many buyers that attend our auctions are actually investors, searching for a property to fix before selling on, so problem properties are perfect for this type of buyer.
Selling your problem property by auction could be easier than you think. To find out more, or to request a free, no-obligation auction valuation, click below, or call 0800 046 5454.