PROPERTYSPARK ARTICLE

How Realtors Can Approach Selling Distressed Kansas City Properties

Real estate agents have one of the most unique jobs in the world. You are responsible for helping buyers and sellers complete a transaction for a property that benefits them, and there are two sides to every transaction.

You have likely sold homes in all kinds of conditions to your clients in Kansas City, but what about those really difficult-to-sell properties? Convincing a buyer to roll the dice on a distressed property can be a huge challenge, and there is a much smaller benefit to you in terms of sales commission.

However, selling distressed properties often comes with the territory, and when housing inventory is low, it becomes even more necessary. Realtors need to have a plan for how they approach selling property in disrepair, so let’s discuss a few strategies that can help.

Advertise Your Experience with Distressed Properties

People who are selling difficult properties are often overwhelmed by the lack of prospects. Most people are not interested in their homes, so they are desperately in search of help to make the sale go through. If your career has given you experience selling these types of properties, then advertising that to sellers can be exactly what they need to see. Once you figure out how much to spend on social media marketing, this can be one of the fastest ways to put your name in front of potential clients with distressed homes.

Be Honest With the Seller

A successful transaction for this type of property starts with being honest with the seller. Do not sugarcoat the fact that it is going to be a hard sell. People are much more interested in buying homes in good condition unless they are investors, so the pool of buyers is going to be much smaller. Additionally, you should seek honesty from the seller as well. What is their situation, and why are they selling? Are they facing foreclosure and, therefore, need a short selling process? Are they looking for a cash purchase? Honesty with the seller is crucial when trying to help them offload a difficult property.

Do the Same With the Buyer

You are unlikely to run into buyers who want the property to be their next home when you are selling something that needs a lot of work. Most of the time, it will be real estate investment firms or house-flippers that are interested in the property. Again, honesty is the best approach when talking about the property with potential buyers. You could point out the quality of the neighborhood that it is in or its proximity to important amenities. Highlight the potential repairs needed, and if you have a good recommendation for a Kansas City siding contractor house-flippers could use, then give them the contact information. Make sure you understand the buyer’s needs as well so you know what strengths to highlight and what weaknesses to be honest about.

Avoid Being Pushy

In your seller’s interest, it could be tempting to be pushy with a buyer because your seller is on a short timeline or looking for cash. There is a reason distressed properties are hard to sell. They are going to require a lot of additional investment after the purchase to make them liveable again. Pushing a distressed property is rarely going to work on buyers because they know they are looking at a home in disrepair. You should also not push your sellers into a sale that they are hesitant about. This is a general rule to follow with most property transactions, but distressed homes carry a little extra baggage with them so it is important to not push either the sellers or the buyers. After all, the home could be an inheritance from a deceased relative, and being too pushy with a seller could make them look for another agent to work with.

Learn About the Investment Market

Since you will primarily be selling to investors, you must understand the world of real estate investment. How can a potential buyer profit from this distressed property? What kind of upgrades would yield greater profits once they flip the home for sale? What are current rental prices in the Kansas City market on comparable properties? How big a footprint does a particular investment firm have in the local housing supply? A better understanding of the real estate investment trends in the area can help you highlight the selling points of distressed properties to investors who do not look at homes the same way as buyers who plan to move in.

Adjust Your Strategy When Selling Distressed Properties

While there is no formula for agents to always get the best deal on a residential property, there are certain ways of doing things that work better for normal homes than distressed homes. You have to be willing to shift your strategy a bit when trying to sell a property in disrepair since the seller will have different needs, and the buyer for this kind of transaction is usually focused on investment opportunities. Focus on the methods mentioned in this article to become a more effective agent when selling distressed properties in Kansas City.