Sell an Old Home to Young Buyers

Selling any home can be very challenging, especially depending on the market. But if you have an old home and want to appeal to young buyers in their 20s and early 30s, you may need to take some extra steps.

First, you'll need to assuage the fears of those young buyers about maintaining a home that was around during the real "Mad Men" days. Second, you'll need to showcase the features that have the most appeal to young couples and families. The following eight tips won't cost a lot of money, and they could reap you an early offer.

Pre-Inspect your home

One of the most difficult decisions for home sellers is to figure out how much to spend on home improvements before putting the house on the market.

"I always recommend paying for a home inspection, especially if the owners are elderly and have not had the money or energy to keep the house in good repair," says Lane Tharp, a Realtor with Coldwell Banker Residential Brokerage in Dunwoody, Ga. "An inspection will help determine if there's anything that absolutely must be done before putting the house on the market."

In addition to a general home inspection, Debby Strott, manager of Weichert Realtors' Morristown West office in Morristown, N .J., recommends that homeowners get the heating and air-conditioning system cleaned and inspected. She suggests having septic systems pumped.

"This provides peace of mind for buyers," Strott says. "You can put the service contract or reports with your marketing materials."

Buy a home warranty 

Strott recommends that sellers buy home warranties that cover repairs for the systems (electrical, plumbing, heating and cooling) and appliances in the home. Most home warranties are available as one-year policies and provide coverage while the property is on the market and after the closing.

A home warranty costs around $300 to $400 and reassures buyers that they won't be faced with a major repair expense in their first year of homeownership, Strott says.

Offer a possible expansion or renovation plan

"Most Realtors know a contractor, so it would be fairly simple for a Realtor to get a ballpark estimate of sample fit-and-finish renovation projects such as replacing the flooring or renovating a bathroom," says Scott Lacey, a renovation specialist with Weichert Financial Services in North Providence, R.I. "Younger buyers don't always realize that everything they see can be changed with a renovation. If they like the home based on the location, the schools and the general style, they can be persuaded to buy if they can see the possibilities that come with a renovation."

Sellers can pay for simple drawings that show some renovation options that would work well with the home's configuration and its lot.

Strott recommends that sellers find out about any permit issues with an expansion such as height or setback restrictions or wetland and to include that information with marketing materials.

Provide Loan Renovation

Mortgages are available that allow homebuyers to borrow money to buy the home plus money to pay for renovations. The most popular renovation mortgage program is called the FHA 203(k). The loans are insured by the Federal Housing Administration .

"Younger buyers who are looking at homes that are 20 or 30 years old are likely to look at the kitchen and baths and want to renovate," Lacey says. "A seller can provide information about an FHA 203(k) loan with their marketing materials to show buyers that they can wrap renovation costs into their mortgage."

Lacey says listing agents should prepare a cost analysis of a standard mortgage and an FHA 203(k) loan to demonstrate the availability of the loan program and to show buyers what the mortgage payments would be based on prospective renovation plans at various price points such as $5,000, $25,000 or $50,000.