Yes, you can absolutely sell your house even if it needs major repairs. According to the National Association of Realtors (NAR), approximately 23% of home sales involve properties requiring significant maintenance, with sellers successfully using cash buyers, as-is listings, and investor purchases.
What Qualifies as Major Repairs?
Significant repairs often involve problems with a home’s structure, which can impact its safety, use, or overall worth. According to the Joint Center for Housing Studies at Harvard University, these repairs often cost more than $5,000 and may include:
Foundation Issues:
- Foundation cracks or settling issues require immediate attention
- Cost Range: $10,000 to $40,000 to fix properly
- Impact: Can reduce home value by 10-15% if left unaddressed
Roofing Problems:
- For many older properties, fixing or replacing the roof is a common requirement
- Cost Range: $8,000 to $20,000, depending on size and materials
- Timeline: Most roof replacements take 1-3 days
Electrical System Updates:
- Bringing systems to current codes for safety compliance
- Cost Range: $6,000 to $15,000 for full updates
- Requirement: Many states mandate electrical inspections for sales
Plumbing System Overhauls:
- Complete system replacement for homes with outdated pipes
- Cost Range: $5,000 to $12,000 investment typically required
- Red Flags: Lead pipes, galvanized steel, or frequent leaks
HVAC System Replacement:
- Necessary when units are beyond economical repair
- Cost Range: $4,000 to $12,000 for complete systems
- Efficiency Impact: New systems can reduce energy costs by 20-40%
Structural Damage:
- Water damage, termite damage, or age-related deterioration
- Assessment Required: Professional structural engineer evaluation
- Variable Costs: Depends on the severity and extent of damage
Your Options for Selling a House That Needs Major Repairs
Sell to Cash Buyers
Cash home buyers specialize in purchasing properties in any condition. According to Redfin Data Solutions, cash sales represented 32.6% of all U.S. home sales in 2024, with many targeting distressed properties.
Process Overview:
- Companies buy houses as-is with no repair requirements
- Timeline: Typically 7 to 14 days from offer to closing
- Paperwork: Buyers handle all documentation and closing costs
Key Benefits:
- No repair costs or contractor delays
- Fast closing times with guaranteed sales
- No showings, inspections, or buyer financing contingencies
- Certainty: 95% of cash offers close successfully vs. 87% for financed purchases
Financial Considerations:
- Cash offers typically range from 70% to 85% of the after-repair value
- Trade-off: Lower price for speed and convenience
- No real estate commissions (saving 5-6% typically)
List As-Is on the Market
You can list your property on the traditional market with full disclosure about needed repairs. This approach works best in seller’s markets where inventory is low.
Market Conditions for Success:
- Inventory Levels: Less than 3 months of available homes
- Buyer Demographics: Investors, contractors, or DIY enthusiasts
- Location Factors: Desirable neighborhoods with good bones
Pricing Strategy:
- Price 15% to 25% below comparable move-in-ready properties
- Calculation: Account for repair costs plus buyer profit margin
- Market Data: Homes priced aggressively sell 23% faster on average
Expected Challenges:
- Longer selling times (average 30-45 additional days)
- Potential buyer financing issues due to the property condition
- Inspection Negotiations: Buyers may request further price reductions
Sell to Real Estate Investors
Local real estate investors actively seek properties needing major repairs. The National Real Estate Investors Association reports that 67% of investors focus on distressed properties.
Investor Advantages:
- Expertise in renovation project management
- Access to contractor networks and wholesale pricing
- Quick Decisions: Often provide offers within 24-48 hours
Finding Qualified Investors:
- Local real estate investor associations (REIA groups)
- Networking: BiggerPockets and similar professional platforms
- Licensed investment companies with track records
Evaluation Criteria Investors Use:
- Location and neighborhood trajectory
- Profit Margins: Typically seek 20-25% return on investment
- Property’s structural integrity and “good bones”
How to Determine Your Home’s Value With Major Repairs Needed
Start by hiring licensed inspectors to assess structural, electrical, and plumbing systems, costing around $300–$600, with results in 2–3 days. Then, get written repair estimates from at least three licensed contractors per major issue. These should include detailed scopes of work, with estimates usually accurate within 10–15%.
Next, research 5–10 recent sales of similar homes in good condition (from the past 3–6 months). Subtract your estimated repair costs, a 20% buffer for unexpected issues, and a 10–15% buyer profit margin from the average sale price to determine your as-is market value.
For a more accurate valuation, hire an experienced appraiser for $400–$600 to get an objective, third-party assessment
Preparing Your House for Sale Without Major Repairs
Cost-Effective Improvements
Safety First Priorities:
- Address immediate safety hazards (loose railings, exposed wiring)
- Investment: Usually under $500 for basic safety fixes
- Liability: Prevents potential buyer injury claims
Cleaning and Decluttering:
- Professional deep cleaning throughout the property
- Cost: $200-400 for whole house cleaning
- Impact: Can increase perceived value by 5-10%
Curb Appeal Basics:
- Fresh mulch, basic landscaping, and exterior pressure washing
- Investment: $300-800 typically
- Psychology: Strong first impressions influence buyer decisions
Documentation Strategy
Create Detailed Repair List:
- Document all known issues with estimated costs
- Transparency: Builds trust and prevents negotiation surprises
- Professional Advantage: Shows you’re informed and serious
Maintenance Records:
- Gather receipts for recent repairs and maintenance
- HVAC Records: Service history demonstrates care
- Value Add: Well-maintained systems may offset other issues
Marketing Approach
Highlight Positive Features:
- Emphasize location, lot size, and architectural details
- Photography: Professional photos focusing on the home’s best features
- Potential Focus: Market the property’s possibilities
Working With the Right Professionals
Choosing Real Estate Professionals
Agent Qualifications for Distressed Properties:
- Experience: Minimum 3 years selling as-is properties
- Track Record: Ask for recent examples of similar sales
- Network: Established relationships with investors and cash buyers
Interview Questions for Agents:
- How many as-is properties have you sold in the past year?
- What’s your average days on the market for distressed properties?
- Do you have a network of pre-qualified cash buyers?
Evaluating Cash Buyers and Investors
Due Diligence Checklist:
- Licensing: Verify business registration and real estate licenses
- References: Request and contact previous sellers
- Financial Proof: Ensure they can close without financing contingencies
Red Flags to Avoid:
- Requests for upfront fees before closing
- Pressure Tactics: High-pressure sales techniques or rushed decisions
- Lack of local references or established business presence
Reputable Company Characteristics:
- Free, no-obligation consultations and written offers
- Transparency: Clear explanation of the offer calculation
- Established local presence with verifiable track record
Frequently Asked Questions
Can I sell my house if it has foundation problems?
Yes, foundation issues don’t prevent sales. Cash buyers and investors regularly purchase homes with foundation problems. According to the Foundation Repair Association, 60% of homes with foundation issues sell successfully as-is.
Expected Impact: Offers typically reflect repair costs ranging from $10,000 to $40,000, depending on severity. Having an expert inspect the foundation will give you a clear picture of what repairs are truly needed.
How much less will I get for a house that needs major repairs?
Discount Range: According to CoreLogic market data, houses needing major repairs typically sell for 15% to 35% less than comparable homes in good condition.
Factors Affecting Discount:
- Total estimated repair costs
- Local market conditions and inventory levels
- Urgency: Timeline pressure can increase discount
- Property location and desirability
Should I get estimates before selling my house as-is?
Strongly recommended. Professional estimates help you understand your property’s condition and evaluate offers effectively.
Benefits:
- Negotiating Power: Independent estimates provide leverage
- Realistic price expectations based on actual costs
- Credibility: Demonstrates an informed seller approach
Cost vs. Value: Spending $500-1,000 on estimates can result in thousands more in sale price through informed negotiations.
How long does it take to sell a house that needs major repairs?
Timeline varies by selling method:
- Cash Buyers: 7 to 14 days typical closing timeline
- Traditional Market: 45 to 90 days average (30-45 days longer than move-in-ready homes)
- Investor Sales: 14 to 30 days once terms are agreed
Market Factors: Local inventory levels, seasonal timing, and property condition severity all impact timelines.
What repairs should I never attempt before selling?
Avoid These Major Systems:
- Structural, electrical, or plumbing repairs without proper licensing
- Permit Requirements: Any work requiring building permits
- Foundation or roofing work beyond basic maintenance
Risk Factors:
- Poor DIY work can reduce property value by 10-20%
- Liability Issues: Unpermitted work creates legal complications
- Buyer inspection failures due to improper repairs
Safe Improvements:
- Cleaning, decluttering, and basic landscaping
- Minor Fixes: Cabinet handles, paint touch-ups, caulking
- Cosmetic improvements under $200 per project
