Millions of homes are listed for sale each year. Homeowners have their pick of many choice properties in markets where supply outweighs demand.
If you are asking yourself “should I fix my house before selling it?” There are pros and cons to selling a home as-is.
Check out this guide to selling your home as is to decide which option is right for you.
The major benefit of selling a home as-is is that you save on the cost of repairs. You won’t be required to negotiate with buyers seeking upgrades on superficial things like granite countertops or stainless steel appliances.
You can simply get a pre-inspection done and provide this report to potential buyers interested in the property. They can decide using your inspection report whether the house is worth pursuing.
Most homeowners will still complete their own inspection, but the information you provide helps them decide if your property is a good deal. Homes that need only a few cosmetic repairs can still bring in top dollar in a booming real estate market.
Should I Fix My House?
There are a few scenarios when fixing your house before making sense. If you are in a buyer’s market, or a market where there are more houses available than qualified buyers, you should consider making repairs first.
Making repairs makes your home more marketable. Buyers are more likely to get more house for their money in these markets so they won’t need to settle for a home that needs heavy repairs.
Leaving your repairs unattended can mean leaving your home on the market much longer than you anticipated. If you’re no longer living in the home, this is a costly decision that may end up being more expensive than simply making the repairs.
The perception of a home sold as-is is that there are major problems so buyers will offer lower purchase prices. Sellers in distress often list homes as-is because they need quick cash.
Real estate investors are often attracted to these types of deals. A seller in distress is more likely to sell a home for a low price which means an investor can make a quick return on his investment.
Avoid selling your home as-is if you can spend the additional time doing repairs. You can ask for top dollar when you leave buyers with more options.
You don’t have to offer the major repairs upfront. Start with a basic appliance service and other small repairs as a good-faith measure for buyers.
Sell vs. Repair
The goal when selling your home is the earn the largest profit in the shortest amount of time. If the repairs needed to sell your home are extensive, consider postponing the sale until you can come up with the cash to get the work completed.
If you are asking “Should I fix my house?” consider the minimum amount you need to earn in order to feel satisfied with the sale. Questions of making repairs often come from financial distress that can be worsened by holding on to a property longer than you need to.
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