Should I Sell My House “As-Is” or Fix It Up
Before offering a house for sale, many homeowners spend too much money doing repairs. They fix problems that some buyers might neglect or just decide to not pay to get fixed. Take the following into consideration before deciding to make any repairs.
Selling a House “As-Is”
Selling a home “as-is” suggests that you won’t do any repairs and that the potential buyer will take ownership of the house as-is in its current condition. The seller will not make any repairs or offer any credits to make up for the problem. Even if a home inspector finds that the foundation is unstable and the roof is close to collapsing.
”As-is” Doesn’t Mean Falling Down
Selling your home “as-is” does not mean that the property is in desperate condition. Sometimes the home requires minor cosmetic changes like repainting the walls or repairing holes in the walls or ceiling. Selling your house “as-is” may appeal to more people than you expect.
Know Your Potential Buyers
Homes that have been neglected typically don’t appeal to the mass market. A first-time buyer won’t be in favor of buying a house with a leaking roof for instance.
However, house flippers look for homes that require repairs. They hope to buy the property at less than fair market value, fix it up, and resell it for a profit. Investors in your region might leap at the chance to acquire your home if the repairs are simple but too much for you to do alone.
You might find a customer who wants a fixer-upper. They might want to personalize or make their own. Simply because properties marketed “as-is” are easier to renovate. Similar to investors, some mass-market buyers may buy a house with a strong foundation but a run-down exterior if they can get it for a good deal. They will have their dream home after removing a few walls here and there, renovating the kitchen, and changing some light fixtures. All for a price significantly less than they would pay had they built it from the ground up.
Even if you don’t fix your house entirely, you will still have people who would be interested in buying your property.
However, with selling a home “as-is” comes one downside. You cannot expect a lot of money.
You Won’t Avoid Negotiation Even When You Decide to Sell Your Home “As-Is”
An aging home frequently draws builders or investors eager to demo the property and build a brand-new house. If you plan to work with a wholesaler or house flipper, find one who has had great success selling homes similar to yours, in your particular neighborhood of the city. Check how long comparable properties have been on the market before selling, what sorts of homes are selling quickly? In what condition, and which neighborhoods are the most desirable, are some useful questions to ask.
Together, you can decide how much your house is worth and bargain for a better deal.
What Losses Can I Expect if I Sell My House “As-Is”?
While move-in-ready homes sold for an average of 25% higher than fixer-upper homes in 2021 (also known as a property that sold as is). This is something to consider if you are in the market to sell your home “as is.”
Mathematically, there are occasions when selling a home as-is makes more sense than making changes to increase its value.
Mark, for instance, is moving to another state, and he must sell his house in Cincinnati, Ohio. His home requires a new roof, exterior painting, carpeting, and foundation work. He’s trying to decide if he should fix it up to sell it for more money or sell it as is.
Mark’s house is worth $200,000 as-is. A move-in-ready property in Cincinnati costs around 7% more than a fixer-upper. He might get $214,000 for his home if he performed the necessary repairs. A $14,000 increase sounds great, doesn’t it?
But let’s look at how much repairs would cost him:
- Roof replacement: $5,600 to $11,8004
- Exterior paint: $1,800 to $4,300
- Carpet: $800 to $2,800
- Foundation repairs: $2,100 to $7,400
Mark will still need to spend $10,300 on repairs, so even if he only pays the very minimum, his profit at closing will only increase by $3,700. Mark will spend $26,300 on higher-end renovations, which means he will lose $12,000 in his attempt to have his house move-in ready, not to mention the time and energy lost.
Mark’s situation would mean that the repairs wouldn’t even be worthwhile. Your situation, though, might be a little different. You should research the prices of comparable move-in ready homes and as-is homes in your neighborhood. It wouldn’t hurt to get estimates from a few contractors and look into those repairs if there is a significant difference between the two figures.
Selling your home as-is can be your best option. If you don’t have the resources to do necessary home repairs.
Fixing Up Your Home Before Selling It
Certain improvements are more profitable than others. Make a list of all the repairs your home needs and then decide which ones will add the greatest value. This will help you determine which should be the top priorities. To help you prioritize, speaking with a real estate agent is helpful.
Estimate How Much Work, Money, and Time an Update Could Require.
Seek out a professional—or better yet, from several professionals. How much repair and maintenance would be necessary to improve the home’s value. Does the home require a complete kitchen and bathroom renovation or just a basic cleaning? What’s more, do you have the resources—money, time, and patience—to carry the project through?
If you decide to fix up your home before selling it don’t forget to calculate the expense of maintaining the house while improvements are being done. You may need to relocate while your property is being renovated. The factor that costs into your budget. The cost will depend on how big your renovation is.
Common Home Improvements You Can Make Before Selling
Some repairs that will add more value to your property include:
- Replacing broken window glass
- Repairing the HVAC system
- Fixing leaky plumbing
- Repairing any holes in the walls and ceilings
- Replacing broken appliances
- Getting electrical systems up to code
- Laying down a fresh coat of paint
You shouldn’t decide to sell your house “as-is” or to make renovations without getting a real estate agent’s professional judgment. They will be able to swiftly and readily spot improvements that will significantly increase the worth of your house, without requiring you to spend all of your cash on repairs.
Your realtor can assist you in navigating the complicated home selling process and make it a much more enjoyable experience. Whether you decide to make pre-sale renovations or sell your house “as-is.”
Fair Property Buyers buys homes for cash, as is. Our buyers will make a fair assessment of the value of your home. You will find that the amount of time it takes to sell your home may vary, depending on many factors such as the condition, neighborhood, market conditions and your timeline. Working with a cash buyer like us, you can have your house sold and have cash in hand in as little as 3 days. Keep in mind that you are never obligated to take any offer from a buyer. Our experienced local home buying experts will make a no obligation fair “as-is” cash offer.