Should You Fix Up a Hoarder House Before Selling? Pros and Cons

 

As a seasoned real estate professional and investor who's seen it all, I can tell you that selling a hoarder house is no small feat. Whether you're dealing with a loved one's property or your own, the question looms large: should you fix up a hoarder house before selling? It's a decision that can significantly impact your sale price, time on market, and even your peace of mind.

In my years of experience buying and selling distressed properties, I've encountered my fair share of hoarder houses. Each one tells a unique story, but they all present the same challenging dilemma. Today, we're going to dive deep into the pros and cons of fixing up a hoarder house before selling, and I'll share some practical advice for those of you considering the For Sale By Owner (FSBO) route.

Understanding the Hoarder House Market

Before we weigh the pros and cons, let's get a lay of the land. The market for hoarder houses is more robust than you might think. According to a 2023 National Association of Realtors report, about 11% of home buyers purchased a property that could be classified as a fixer-upper, with many specifically looking for properties with "good bones" but needing substantial work.

Hoarder houses often fall into this category, but they come with their own unique set of challenges. Unlike typical fixer-uppers, hoarder houses aren't just about peeling paint or outdated kitchens. They often involve:

1. Extreme clutter and debris
2. Potential structural damage from neglect
3. Sanitation and pest control issues
4. Emotional and psychological factors

These factors can make hoarder houses particularly challenging to sell, but also present opportunities for the right buyers.

Pros of Fixing Up a Hoarder House Before Selling

1. Increased Property Value

Let's face it, a cleaned-up and renovated property will almost always fetch a higher price. In my experience, a well-executed renovation on a hoarder house can increase the property value by 20-30% or more, depending on the extent of the work and the local market conditions.

2. Wider Pool of Potential Buyers

By fixing up the property, you open doors to a broader range of buyers, including those seeking move-in ready homes. This increased demand can lead to faster sales and potentially multiple offers.

3. Faster Sale Process

A clean, presentable home typically sells faster. According to Zillow, homes in good condition sell about 10-15% faster than those needing work. In the case of hoarder houses, this difference can be even more pronounced.

4. Reduced Legal and Safety Liabilities

Hoarder houses can be a legal minefield. By addressing issues like mold, structural damage, or code violations, you reduce your liability and make the sale process smoother. This is particularly important if you're selling your house as-is, as it can help you avoid potential lawsuits down the line.

5. Emotional Closure

For many families, cleaning out and fixing up a loved one's hoarder house can provide much-needed emotional closure. It's a chance to honor their memory by restoring the home to its former glory.

Cons of Fixing Up a Hoarder House Before Selling

1. High Upfront Costs

Renovating a hoarder house isn't cheap. Depending on the severity of the hoarding and the size of the property, costs can easily run into the tens of thousands of dollars. In one extreme case I handled, the clean-up and renovation costs exceeded $100,000 for a 3,000 sq ft home.

2. Time-Consuming Process

Fixing up a hoarder house is not a weekend project. It often takes months of dedicated work. This extended timeline can be problematic if you're looking for a quick sale.

3. Potential for Unforeseen Issues

Once you start clearing out a hoarder house, you never know what you might find. Hidden structural damage, mold, or pest infestations are common surprises that can blow up your budget and timeline.

4. Risk of Overcapitalizing

There's always a risk of spending more on renovations than you can recoup in the sale price. This is especially true in markets where the ceiling price for the neighborhood is relatively low.

5. Stress and Emotional Toll

For family members, the process of cleaning out and renovating a loved one's hoarder house can be emotionally draining. It's not just about the physical work; it's about sorting through a lifetime of memories and possessions.

Factors to Consider When Deciding

When deciding whether to fix up a hoarder house before selling, consider:

1. Current market conditions: In a hot seller's market, you might be able to sell as-is without significant price reduction.
2. Property location and potential value: High-value neighborhoods might justify more extensive renovations.
3. Extent of hoarding and required repairs: Some properties might need more work than others.
4. Available budget and resources: Be realistic about what you can afford and manage.
5. Timeline for selling: If you need to sell quickly, extensive renovations might not be feasible.
6. Emotional readiness of family members: Sometimes, the emotional cost outweighs the potential financial gain.

Steps for Fixing Up a Hoarder House

If you decide to fix up the property, here's a general roadmap:

1. Professional assessment: Get a thorough inspection to understand the full scope of work needed.
2. Clearing out the hoard: This is often the most time-consuming step. Consider hiring professionals who specialize in hoarding clean-up.
3. Deep cleaning and sanitization: Once cleared, the house will likely need intensive cleaning.
4. Necessary repairs and renovations: Address any structural issues, update systems, and consider cosmetic improvements.
5. Staging for sale: A well-staged home can sell faster and for a higher price.

Alternatives to Fixing Up

If fixing up the property isn't feasible, consider these alternatives:

1. Selling as-is to cash buyers or investors: This is often the fastest option. Many investors specialize in buying hoarder houses in Pennsylvania and other states.
2. Partial clean-up and minor repairs: Sometimes, a middle ground approach can be effective.
3. Auction options: In some cases, auctioning the property can be a quick and effective solution.

Tips for Selling a Hoarder House FSBO

If you're considering the FSBO route, here are some tips:

1. Be honest about the property's condition: Transparency is key to avoid legal issues later.
2. Target the right buyers: Focus on investors and flippers who are looking for projects.
3. Price strategically: Be realistic about the property's value in its current condition.
4. Leverage online platforms and social media: Many investors search for properties online.
5. Prepare for negotiations: Be ready to discuss the property's potential and justify your asking price.

Remember, selling a hoarder house FSBO can be challenging. If you're feeling overwhelmed, don't hesitate to seek help from a real estate professional who has experience with these types of properties.

Conclusion

Deciding whether to fix up a hoarder house before selling is a complex decision that depends on various factors. While renovating can potentially increase your sale price and expand your buyer pool, it also comes with significant costs and risks.

In my experience, the best approach often lies somewhere in the middle. A basic clean-out and essential repairs can make the property more appealing to investors without breaking the bank. However, each situation is unique, and what works for one property might not work for another.

If you're struggling with how to sell an ugly house fast, remember that there are always options. Whether you choose to renovate, sell as-is, or something in between, the key is to make an informed decision based on your specific circumstances and goals.

Ultimately, the decision to fix up a hoarder house before selling is a personal one. Consider all the factors we've discussed, do your research, and don't be afraid to seek professional advice. With the right approach, you can navigate this challenging situation and move forward with confidence.