Selling a house in America can come with some special issues, especially when trying to sell specific types of houses that are naturally more difficult to sell. Understanding these issues is important for homeowners, real estate agents, and investors who wish to move through the real estate market with success.
Hardest types of homes to sell in the United states
- Rural houses
Rural houses, as they are usually found in far-flung areas with big acreage, will only be of interest to a limited number of people. The remoteness and the likelihood that it will lack amenities will deter many prospective buyers, so that these houses remain on the market longer than their urban counterparts. To quote CT Homes, “There is also usually less demand, and a much smaller buyer pool for this type of property than for, say, a condominium in Manhattan.”
- Mobile homes
Though they offer a fairly inexpensive solution to housing, mobile homes pose difficult resale problems. Both the low degree of their acceptability as dwellings and the reluctance of mortgage lenders to offer mortgages on them are conspiring to deprive them of greater marketability. Most mortgage lenders aren’t interested in financing them for applicants. That can make mobile homes very difficult to sell.”
- Condo-Hotel units
Condo-hotel units, a mix of condominium ownership and hotel amenities, can be appealing to investors looking for rental income. The units, however, are hard to finance and require large down payments, especially in the midst of an economic slowdown. CT Homes observes that “these units can be difficult to finance and may require large down payments.”
- Housing in high-risk climate zones
Houses in danger zones, i.e., wildfires or flooding, pose unique selling challenges. Although there is risk, there are buyers drawn to these locations due to their natural environment or affordability. However, with the increasing instances of climate disasters, these homes have become more difficult to sell and insure. It is noted by Financial Times that “developers find it lucrative to build in this sexy but risky terrain,” although rising insurance premiums are becoming more costly and the loss in property values bear down as climate risk is picking up pace.
- Properties in economically distressed areas
Homes in regions where economic downturn or overall unemployment is experienced have poor housing markets. For instance, cities that are highly reliant on government employment might experience a decline in home prices due to the administration’s reduction in government spending. Cities with high government employment could see further declines in home prices” following the reduction in spending.
- Over-improved properties
Over-upgraded or customized homes in a particular neighborhood that are too customized to be acceptable could be hard to sell. The homes may not be attractive to the average buyer, and appraisals will not be in a position to capture the inflated value, thus resulting in complications when financing is involved. A mistake commonly made by regular homeowners and newbie investors is that size equates to value.
- Tiny houses
Although tiny houses are increasingly popular due to their affordability and minimalist chic, they are extremely hard to sell. Most mortgage lenders do not want to lend money on homes with extremely small square footage, thereby decreasing the number of potential buyers. Many mortgage lenders won’t finance small square footage units making tiny houses hard-to-sell homes.
- Stalled construction projects
Half-finished properties or renovation properties that are stalled can be frightening to buy. Having to deal with permits, code issues, and financing to finish the job complicates the transaction. Buying a half-finished property can be difficult in terms of dealing with permits, code issues, and financing.
- Environmental concern properties
Properties that are located in areas of environmental issues, such as poisonous soil or near factory sites, may be unattractive to buyers on health grounds and the potential for cleanup costs. They typically require significant disclosures and even professional inspections, which make sales more involved.
- Properties with legal complications
Real properties with homes involved in legal complications, i.e., doubtful titles, liens, or heir disputes, are especially difficult to sell. Time and lawsuits are required to resolve such cases, and this may deter interested buyers who want a trouble-free sale.
Selling techniques for difficult-to-sell properties
Despite the difficulty, there are some methods that can make these properties more salable:
- Competitive pricing: Establishing a reasonable price based on the condition of the property and the market can attract more buyers.
- Better marketing: Through professional photography, virtual tours, and targeted advertising, the home can be promoted with its best features.
- Flexible financing: Seller financing or lease-to-own can increase the pool of buyers.
- Repair to the property: Cosmetic and structural repairs make the property more appealing to the buyers.
- Transparency: Complete disclosure of any issue and potential solution gives confidence to the buyers.
