Should you fix up your home or sell as-is
So, you’re ready to sell your home. You’ve got plans for the future, maybe even have your eye on a new place, and need to get rid of your home first. Before you start inviting buyers to explore your home, look around you ― does your home look ready for an offer?
Many homeowners struggle with the age-old dilemma of whether to fix up their home or sell it as-is. Maybe your kitchen looks like it belongs in the ‘90s, or maybe there are obvious problems like a broken light fixture or small holes in the wall where family photos once hung.
The answer isn’t as cut as dry as you might like. Here’s how you can weigh your options and avoid spending more than you need to without sacrificing results. First of all, you will want to speak with a real estate agent who provides a concierge home improvement service in their menu of real estate services to their clients. Note, not all real estate agents specialize in this nor provide it. Hence, not all real estate agents are the same.
We know selling a house can seem easy from the outside but it is not as easy as one would think. This is why it is so important that you pick the right real estate agent to guide you through the home selling process.
When to Sell a Home As-Is
Does your home need a lot of work? Maybe some of the electrical system doesn’t work. Floors are sagging, faucets are leaking, and many of the appliances need to be replaced. The hot water heater is more than 15 years old and there are multiple holes in the wall. No matter what it is when it comes time to sell a house you need a local real estate agent with several services to offer you to help you find the right path for you.
These are not “quick fixes,” and can cost a small fortune to do. In this case, you might be better off not investing in repairs and selling your home as-is. In fact, a fixer-upper home like this will attract investors or house flippers looking for a project.
Some houses need the basic fix up, flooring, paint, and a few items. A concierge service is great to sell a house for more money, smoother, and faster. There are some jobs that are so big then one of our cash buyers might be a better fit for you. However, until we sit down and then tour your house too with the mind send to sell a house the best way for you the answer should remain unknown.
When It Makes Sense to Make Repairs Before You Sell a Home
Now, let’s say your home is in fairly good shape in a strongly desired neighborhood. It has good bones, but also a few flaws that might turn off buyers or lower your offers. In this case, it can be worthwhile to make a few light cosmetic repairs that will reflect what you feel your home is worth. Many buyers will make offers based on what they feel it might cost to make the necessary repairs. Besides making it based on what they think it will cost them to repair it they usually make an offer a bit stronger because they have to take time, energy, and money to do this. They also know your home is sitting and creating an opportunity for them to grab a great deal.
For example, let’s say your home is worth $150,000 but is in obvious need of a new roof, which costs about $10,000. A buyer is not likely to offer you $140,000 for the home since they’ll have to deal with the hassle of getting a new roof installed. In this case, you would be better off getting the roof yourself. They know to sell your home you will have to sharply lower your price to sell it.
Working with a reputable real estate agent is invaluable to this process. Your agent can advise on whether it makes sense to make certain repairs so you can best allocate your money and get the best returns. Selling your home with the right support will make it one of the best selling experiences.
Repairs to Prioritize When Selling a Home
Maybe your home doesn’t need any drastic repairs like a new roof. Should you still invest money in making minor changes to attract buyers?
The answer is usually yes.
It doesn’t cost much to apply a fresh coat of paint to your living room or fill in holes left behind by pictures on the wall. Some simple changes can take you from fixer-upper to I can see myself living here and doing this and that along the way. I call that a game-changer when you move from fixer-upper to allowing them to fantasize about what they can do to make the home theirs. Remember, dirty walls with holes will leave a lasting impression on buyers as a fixer-upper house that needs work. It makes your home look old and may make the buyer question what else you’ve neglected in caring for the home. To sell your home and to net the most money you will not want them thinking this house needs work.
It’s best practice to put your home in the best possible light. This means fixing any glaring issues that are sure to be noticed by the buyers, as well as anything that might come up in a home inspection (e.g. broken light fixtures, a non-working oven, etc.). Remember, a buyer can re-negotiate on price pending results of the home inspection if it turns up any issues. Many times there will do one of the following:
- Simply cancel after the inspection
- Ask for the repairs
- Ask for repairs with an option to reduce the price of the house
We recommend getting expert advice from one of our real estate agents at James Sanson Team with Dorrmat before investing money in any repairs. Remember when you are selling a house and you want the best return on investment you want a skilled real estate team backing you up all of the ways because they know what potential buyers want.