How to Sell a Rundown Home: When Severe Wear & Tear Has You Feeling Stuck
Life happens, and sometimes, it leaves a home in rough shape and when you need to sell a rundown home, it can be tough. Over decades, that can mean chipped paint, creaky floors, plumbing issues, outdated wiring, and more. If it’s been years since significant upkeep, or the property just isn’t aging gracefully, it’s easy to feel overwhelmed.
But here’s the thing: homes with significant wear and tear can still sell, and often faster, cleaner, and easier than you’d expect. Investors and cash buyers don’t shy away from “fixer” properties. They buy for the long game: transforming them into beautiful homes again.
Today, we’ll cover how to sell a rundown home, including:
Why homes with serious aging still attract buyers
A real-life example of a Chicago-area family we helped
A step-by-step strategy to prepare, price, and sell
A detailed infographic: Repair vs. Sell-As-Is
When repairs pay off—and when they don’t
Smart timelines and next steps
1. Why Homes With Severe Wear & Tear Still Sell
It can be hard to believe, but Chicago’s real estate market includes a thriving trade in well-worn houses. Here’s why:
Investors hunt for bargains
Local investors are continually on the lookout for homes they can buy under market value, restore, and sell for profit.Renovation loans exist
Products like FHA 203(k), Fannie Mae Homestyle, and Freddie Mac CHOICE Renovation allow buyers to finance both purchase and renovation in a single loan.Creative financing thrives
Hard money lenders and private investors stand ready to make quick cash offers—even on run-down properties.Long-term equity wins
Fixing up a worn home can deliver outsized returns in gentrifying neighborhoods.
2. Example Story: The Johnson Family (Chicago Ridge, IL)
Meet Maria and Carl Johnson, a young family in Chicago Ridge:
Situation:
They’d lived in their modest 1950s brick ranch for almost 25 years and wanted to sell a rundown home. The hallways had patched drywall. Carpets were outdated. The porch needed repairs. Plumbing was original and unreliable, to say the least.Pain points:
Frequent small repairs draining their time and budget
No desire to complete a major renovation
Uncertainty about selling and staging an existing family home
Solution:
They contacted us at Olson Home Buyers. We looked over the condition, made a fair all-cash offer for the house as-is, and closed in just 21 days.Outcome:
They easily moved into a newer home and invested the much-needed funds in their three kids’ education, without worrying about selling or renovating.
That’s the power of converting “wear & tear” into opportunity.
3. Four-Step Strategy to Sell It Without a Full Remodel
Step 1: Get an Honest Assessment
Bring in a trusted contractor or inspector to document:
Structural soundness
Roofing condition
Electrical/plumbing safety
Foundation and grading risks
Cosmetic issues (floors, paint, fixtures)
Pro tip: Offer your inspector’s report to buyers—it builds trust.
Just note that many contractors will charge you for this service, anywhere from $200-$600.
Step 2: Choose Your Path: Partial Repairs or Sell As-Is
Partial Repairs:
Fix major needs (roof, HVAC, safety hazards) to broaden the buyer pool while still selling a rundown home below full rehab cost.Sell-As-Is:
Keep all issues visible, price to reflect them, and target cash buyers or investors.
Step 3: Price It Right
See what similar “tear-down specials” and as-is comps sold for.
Leave a small margin for renovation budget—typically 15–20% of the after-repair value (ARV).
Consult investors if going cash because they often know the real costs of rehab in your ZIP.
Step 4: Market to the Right Buyer
Clearly disclose what’s needed when trying to sell a rundown home. Don’t hide it. Experienced investors will see the value despite the issues.
Label FSBO listings with “Cash Buyers Preferred” or “Investor Special.”
Work with agents or buyers fluent in handling distressed properties.
Use creative channels like Facebook Marketplace or local rehab groups.
Note that agents' commissions will cut into your takeaway check at the closing table.
4. Repair vs. Sell-As-Is
Repairing vs. Selling As-Is: What’s Right for You?
Option 1: Making Repairs Before Selling
Pros:
May increase the home’s market value
Could attract traditional buyers who want move-in ready
Possibility of a higher sale price (but not guaranteed)
Cons:
Expensive upfront costs (materials, contractors, permits)
Long timelines—months before the home even hits the market
Surprise issues can pop up mid-renovation
Stress of managing repairs, clean-up, and staging
Risk of over-improving for the neighborhood
Option 2: Selling As-Is
Pros:
No repairs, no cleanup—sell in any condition
Fast, flexible closing (as little as 7-21 days)
Avoid agent commissions, staging, and showings
Buyers (like Olson Home Buyers) pay cash and handle everything
Ideal if you’re on a tight timeline, short on funds, or just done with the property
Cons:
May sell for less than a fully renovated home, but you skip the cost, stress, and delay of fixing it.
Bottom line: Unless you have extra time, money, and energy to tackle renovations, selling your Chicago home as-is is often the smarter, faster, and more profitable choice in the long run.
5. When Repairs Actually Pay Off, and When They Don’t
Repairs Often Worth It When:
They solve safety or habitability issues (leaky roof, dangerous wiring)
They're cosmetic, low-cost upgrades that increase appeal (fresh paint, flooring)
They save months on the market, and carrying costs
Repairs Not Worth It When:
You lack time, budget, or interest in managing renovation
Upgrades are cosmetic and expensive (kitchens, baths)
You prefer a fast, predictable sale and plan to re-invest proceeds elsewhere
6. Smart Timelines & Next Steps
Assess Phase: 1–2 weeks (inspections, contractor review)
Decision & Prep: 1 week (choose path, price, staging)
Marketing & Closing: 3–6 weeks
Cash buyers often close in 7–30 days
Partial-repair buyer closings may stretch to 45 days
Checklist
Secure inspection
Order comps
Prepare disclosures
Notify utilities/tax pro
Clean up and stage yard (simple touches)
A home showing its age, with cracked walls, worn floors, peeling paint, doesn’t have to hold you back. With the right strategy, transparent marketing, and a trusted local buyer, you can turn a tired property into a fast, low-hassle sale.
If you’re dealing with a house with serious wear and tear, Olson Home Buyers is just a call away. We’re local. We’re honest. And we’re experts at turning problem houses into fresh starts, all on your timeline.