As a real estate Broker I have been confronted with the situation of an “old junker” home that needs to get sold quickly and for as much money as possible.

The reasons vary from the property being a rental unit, a home that is inherited, or the current owners just didn’t maintain it very well.

Despite the reason of the home being in need of repairs there are several tried-and-true ways of easily getting the home prepared for sale.

If you are a homeowner of a home in need of repairs, don’t despair, I will let you in on my “secrets” that I employ time and time again to help my clients move their property.

Every situation is different, for the sake of this article, let me address perhaps the most complex of the earlier mentioned situations – you are trying to sell a home that you live in and it is in need of many repairs.

This situation is the most complex, in my opinion, since you are living there.  A home that is lived in by the client is always more challenging to sell than a vacant home that has been Staged® for sale.

Unfortunately your first compulsion as the seller is to “hide” these repairs.

Let me caution you right now, that hiding repairs in a home will cost you far greater than you can ever imagine.

Let’s pretend that you are able to hide these repairs from the buyer, and from the inspectors, eventually they will come back to haunt you when the buyer does discover them and comes after you with a lawsuit!

So, don’t think you will be able to just sweep them under the proverbial rug and walk away scott-free.

I have always had my clients disclose all repairs!  In fact, I have always had my client hire a local Home Inspection Company to generate a report, which includes the necessary repairs, and the estimated costs to have these repairs fixed.

If my client does not have the money for the repairs, we will offer the repair costs to be credited to the buyer in Escrow.  This is a great motivator for a buyer, who then can get the money for the needed repairs, and they will feel like they are getting a great price on the purchase of your home as well.

Another good tactic to offer is to purchase a Home Warranty for the new buyer.

This Home Warranty will help protect you as a seller of the home from those annoying “small” things that break (like a built in microwave) or it can protect you from the bigger ticket items including furnaces and air conditioning units.

These Home Warranties cover the home for one year after the close of escrow, are renewable by the new home owner, if the new owner chooses to pay for the renewal.  Typically a Home Warranty will cost you less than $500, one time, paid through Escrow.

Why even do the Home Inspection, and why even pay for a Home Warranty?

The answer is psychology!  You are showing the potential buyers out there that you are an honest seller with nothing to hide, and that is why they should feel comfortable in buying your used home.

Its really simple, if you think of it from the buyer’s perspective.

Imagine, it is a nice warm Sunday afternoon and you and your spouse are out touring open homes, you pull up to a house, it looks perfect even before you get out of your car!  Eagerly you both enter the home, and start looking around, then it happens, that “feeling” you both get.

You both notice something that is not “correct”.  You ask the Realtor, and they tell you that they hadn’t noticed “it” before, but that they will mention it to the owner when they see them later.

The Realtor kindly offers to call you back later with the answer.  However, by now you are hesitant, you both are getting that “feeling” and don’t want to give up your mobile number, instead you offer to take the Realtor’s card and tell them that you will call them.

That is how trying to cover up needed repairs can cost you a potential sale.

Honesty is the best policy.  If you are proactive by having the Home Inspection done first, the Termite Report done first and offering to pay for needed repairs, or split the cost of repairs in Escrow, that will go a long way to helping you sell your home, even in this current sluggish real estate market.

BUT, I don’t have the money or equity to offer to pay for repairs in Escrow!

I have heard that plenty of times.  So, don’t offer to pay for the repairs, just have the report so that the buyer can look at your home intelligently and factor in for them.  The Home Warranty is really inexpensive and it helps to take the sting out of it for the buyer when you offer to pay for that.

Another approach is to offer to pay for something less expensive, but sounds like a greater value.

For example, you can offer to pay for the transfer taxes or the Escrow or Lawyer fees.  Lets say your home needs a new roof, and that cost is $20,000.00 estimated, the Escrow fees or transfer tax may only be a few thousand dollars in comparison.  It makes the buyer feel like they are getting “something extra” from you, and it may just be enough to sell your home.

Still too much money to spend?

Okay, I get it, you are a victim of this bad economy and you just must get as much money as you can for the home, sell it fast and you don’t have the equity to spare.

I mentioned at the beginning of this article about vacant homes being Staged®.  Well, Staging® is not only for vacant homes.  I urge you to visit Barb Schwarz’s website www.StagedHomes.com.  Barb is the guru and creator of Home Staging®!

Staging® has been proven to sell homes for more money in less time than any other method.  And the best part is since you already live in your home, you don’t need to rent expensive furniture.  The core philosophy will be to de-clutter your home, yes fill up the garage with your stuff, to the rafters if necessary!

You can also slap-on some fresh paint and do some serious spring cleaning to give your home the extra sparkle it needs.  The StagedHomes.com website will give you even more ideas you can use.

If you are a handy person, then try to repair everything that you can.  Doing it yourself will save you the costs of hiring a professional and it will help you to sell your home faster and for more money.

I wish you the best of luck with the sale of your home and I look forward to hearing your own personal story of home my ideas have helped you.  Good luck!

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