Is there a way to sell a fixer that doesn't pass inspection? (rent)

[famlife]

We bought a fixer home about a year and a half ago, and was able to make many repairs on it but never finished it due to finding the property of our dreams elsewhere and beginning to invest in that. It would help us immensely if we could sell this house that with some repair could more than double it's value. We've put in much of the work. My question is, is it possible to sell a home that doesn't pass inspection, if you are up front about everything? Can people get a loan for a home that doesn't pass inspection? Thanks.

[rcsteiner]

I'm sure it's possible. Why not talk to a selling agent?

[famlife]

I was hoping there'd be someone in the field on here, but if not, I'll give someone a call.

[flyonpa]

Honestly your best bet is to sell it to (another) investor who can go in and flip it.

Most people buying a home for themselves, want the house as close to turn key as possible. They don't want to pay rent/mortgage and get a construction load to finish the place they are getting. Since there is no/way they could get a conventional mortgage on it.

[Brian_M]

Originally Posted by flyonpa

Honestly your best bet is to sell it to (another) investor who can go in and flip it.

Most people buying a home for themselves, want the house as close to turn key as possible. They don't want to pay rent/mortgage and get a construction load to finish the place they are getting. Since there is no/way they could get a conventional mortgage on it.

Yes and no. I would *never* buy a house that's been 'flipped', 99% of the time they are complete botch jobs (I've bought 4 homes in 3 states since 2006 ~ I've looked at a *LOT* of property).

Not only have I paid both rent and mortgage, I know lots of others who have done so. Same group actually look for things to owner renovate so we can save money on the purchase price. Yes, we ARE the exception rather than the rule (ugh, I have 2 brother-in-laws, both bought houses in the past 6 months and didn't even fricking CLEAN before moving in, yuck!), my point is that we are out there in every market.

As for the loan, it'll be for what an appraiser says the property is worth. My current property took 8 months of work before it was livable, just a normal home mortgage and we did nothing special to make it work.

OP, you need to ask a estate agent what your options are based on the condition of the property. Someone might be able to help online, but you're going to need to give a Ton more information about the property first... like what you mean by "fixer". To some people it's down to bare studs, no floor, no wiring, no plumbing... to others it meas a place needs a cleaning and some fresh paint. Easy sell on one side, no headaches or issues in the least... and quite the opposite on the other side, with a HUGE range between the two.

[famlife]

This home is somewhere in between. Needs water heater, the kitchen has nothing, not even countertops, there's a couple places that need patching... A couple windows need replacing. Otherwise liveable. We've put in a lot... Claw foot tub, whole new bathroom, installed propane, converted to open concept... Landscaped and painted the outside... Built sheds... Just a ton of work. However, we were on solar and not hooked up to conventional electric. That's not something we want to pay for To have installed. Also a handful of other things that may or may not make it up to code, I guess I should look into what those things are.

[Newsboy]

I've got a friend who flips houses all the time -- he's very good at in fact. The houses all turn out beautiful and he makes ridiculous returns on his original investment. However, he'll often gut a house or have it half finished before somebody comes along and makes him an offer based on potental. So yeah, it can be done. But it's quite possible those are cash transactions.

Also, though I don't know the name of the program, you can purchase a distressed home and finance the cost of renovations into the price of the loan. Obviously, these houses aren't going to pass any inspection. But banks still give loans on them based on the potential finished project, so ...