Unfortunately, not every home is a beauty that belongs on the cover of Better Homes & Gardens. Sometimes properties have fallen into disrepair, have outdated features and decor, or were poorly kept over the years.

When it's time to sell an ugly house, it’s not uncommon for homeowners to get discouraged thinking no buyer would ever want it in its current condition. However, there are several viable options for selling an ugly house without having to pour significant money into major renovations and repairs.

Work With a Cash Buyer

One of the best solutions for selling an ugly house fast and with minimal hassle is to work with a cash home-buying company, such as ourselves in the Austin/Central Texas area. We’re real estate professionals who purchase properties outright for cash, taking the home completely as-is. There's no need to worry about making any repairs, renovations, or updates before selling.

Cash buyers understand that not every home is in pristine, move-in-ready condition. Their business model is geared towards purchasing ugly houses at a discount, taking the risk, and putting in the work to renovate and resell the properties for a profit. They do the hard work for you! As the seller, you avoid the headache, costs, and months of construction timelines to get the home into perfect showing shape.

Working with a cash buyer results in a swift closing timeline, often in as little as 7-14 days. This makes it an ideal solution if you need to sell quickly due to job relocation, inheriting an unwanted property, facing foreclosure, or divorce. Cash buyers handle all paperwork and cover standard closing costs.

Since cash buyers make purchases as-is, you also eliminate the risk of the sale falling through due to a poor appraisal or the buyer's inability to secure financing. The deal can close quickly and smoothly with guaranteed cash in your pocket, which, in our experience, is a huge plus for the sellers.

Sell for Lot Value

In rapidly appreciating real estate markets, an often-overlooked option for selling an ugly, outdated house is to market it based solely on the lot value. Even if the structure itself is in poor condition and has no hope of renovation, the land underneath may be extremely valuable. Of course, that depends on location, neighborhood demand, lot size, zoning, and other factors.

Many builders and real estate investment companies are eagerly searching for tear-down opportunities and vacant lots to acquire and develop into new residential or multi-family housing. If marketed properly emphasizing the lot specs and zoning regulations over the dilapidated condition of the existing structure, an ugly house has a strong chance of selling for close to the land's full market value.

The new owner can then demolish the unsalvageable structure affordably, clearing the lot to construct their new development project from the ground up without the extra costs and complexities of managing major renovations.

Make Affordable Cosmetic Upgrades

Sometimes an ugly house just needs a little lipstick with some budget-friendly cosmetic upgrades to become appealing enough for a traditional buyer. A fresh coat of paint inside and outside is an extremely cost-effective option and our go-to option. Other low-cost improvements include cleaning, refinishing, or replacing flooring and carpets, repairing drywall and trim, and trimming up landscaping.

You may have to invest a few thousand dollars into these aesthetic projects, but they make an ugly house look clean and well-maintained to prospective buyers. Improving the home's interior and exterior appearance through small upgrades is worth it if you have the time, money, and energy.

Heck, even picking up clutter from around your house, deep cleaning the house, and taking good photos is a very low-cost start. Your home will command a much higher selling price than if you tried to offload the property in its original ugly and run-down condition.

Price Accordingly

Whether working with a cash buyer, selling for lot value, or making basic upgrades, price an ugly house realistically and according to the current condition and scope of work needed. Especially in 2024’s higher interest rate environment, you’re better off under-listing and creating a bidding war than over-listing and having the property sit.

Look at comparable recent home sales in the area to establish a reasonable price range, then discount from there based on the costs and extent of repairs needed to bring the home to market condition. An experienced real estate professional can provide an assessment and help guide appropriate pricing.

What if your property has large and serious deferred maintenance in need of repair, including the roof or foundation? One option is to get several quotes for this repair, discount the asking price for that amount, and provide the quote to potential buyers upon inquiry. This way, buyers won’t try to “over negotiate” on a repair that you now know the effective cost of.

One point to mention: don’t be offended by offers that may come in below the listed price, as buyers don’t share the same sentimental value of a property as you do. Price an ugly house to sell, leave some room for negotiation, and you should be golden. After all, even if you make a few upgrades, the property is still in need of significant work!

Timing the Market

While the strategies discussed for selling an ugly house can apply in any real estate market, your chances of success are dramatically improved when listing in a seller's market with low inventory levels. In tight market conditions where there is far more buyer demand than available housing supply, sellers have a distinct advantage even when offering a property in poor condition.

During a seller's market buyers have less ability to be overly picky since they face increased competition and bidding wars over a scarce number of listings. An ugly house that may get overlooked when buyers have plenty of elite turnkey options to choose from can attract multiple offers if it is one of the few affordable listings available.

This dynamic creates scenarios where selling an ugly house "as-is" for top dollar becomes much more realistic, as buyers are motivated to take what they can get. Properly pricing the home and making basic cosmetic improvements goes a long way toward capitalizing on the reduced inventory.

Conversely, selling an ugly house is more difficult in a buyer's market when there is a glut of available properties and supply overwhelmingly outweighs demand. Buyers have the upper hand and will be far more selective. Why settle for one in poor condition when they can wait for the perfect home to come along?

With that said, I also acknowledge that this may not be an option for some if you're falling behind on your mortgage - when facing foreclosure, you're on the clock!

Concluding Thoughts

Selling an ugly house in poor condition doesn't have to be an uphill battle. While the traditional listing route may not be the best approach, sellers have other viable options at their disposal. Working with an investor cash buyer like Myers Real Estate can make all of the difference! Reach out today.