We are already into the 2nd quarter of 2018 and the housing market isn’t showing any signs of slowing down all across the county. It is a “Sellers” market right now. The question a lot of sellers are faced with is whether or not they should try and sell their house just the way it is, or should they fix it up.
Should You Sell “As Is” Or Make Repairs?
So here is the answer you are waiting on… Depends! There are a few things that you have to consider yourself. One is do you have the money to make the repairs? Another is will you recoup the money you spend on the repairs? Another is what kind of condition are the houses in your local market in? Lastly (and there are more, but we will stop here) is are you trying to get top dollar for your property?
Let’s tackle the last question first, are you trying to get top dollar. Here is some insight –
If sellers have the time, money and the inclination, they’ll come out way ahead by fixing any problems before listing their house for sale. If your house is in move-in condition it will appeal to a wider group of prospective home buyers. For example, first-time home buyers, and buyers with busy lifestyles, often won’t even consider buying a home that needs a lot of work. That’s because they don’t have the time or the experience to deal with the problems.
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So if you are trying to get top dollar, yes you have to make ALL repairs. With the way the market is in most of the country this will more than likely start a bidding war, which could in fact get you even more than your asking price!
Next you have to stop and find out if you will get your money back by making repairs or more importantly – updates. Here is some great advice from The Balance:
Before deciding to make specific repairs before resale, take an afternoon off to tour other homes in the neighborhood of sale with your agent.
Note the condition and amenities in those homes. Compare these homes to yours. If, for example, most of the homes on the market have upgraded kitchens, you should concentrate on fixing the kitchen.
This doesn’t mean you need to buy designer appliances and tear out the cabinets. But a minor kitchen remodel might be a good investment. Sometimes, simply painting oak cabinets a darker color and installing updated hardware can give your kitchen an all-new look.
Continue reading “Should I Fix Up My Home or Try to Sell As Is?“
The kitchens and bathrooms of the comparable homes are important aspects to consider, especially kitchens. You would be surprised how a fresh coat of paint on the cabinets and new hardware can brighten the room. For the most part you should be able to have a minor kitchen remodel from $10,000 to $15,000. Bathrooms may be a little trickier, but you may be able to find a new vanity and paint the walls and get it done for under $1,000, depending on the vanity you choose.
Now what if you don’t have the money to make repairs? If your house is in need of a new roof, you may have a bit of a problem on your hands. Clearly in this situation you will not be able to get top dollar, and will more than likely have to get involved in some serious negotiations. Your pool of buyers will also greatly be affected.
But let’s say that your house just needs updating, like the kitchens and bathrooms and maybe some new carpet. Again, the amount of buyers lining up to buy your house will be shorter. But, there are people out there that will be willing to buy it, you may just have to wait a little longer for the right one to come along. Here is a little advice from Jack Guttentag –
When it Pays to Sell As Is: I sold my house as is because I had already committed to a new one and wanted detachment from the old one as soon as possible. Furthermore, the buyer who fell in love with my old house had the financial capacity to pay for all needed improvements. She didn’t need the larger mortgage that would have been obtainable if I had made the improvements. In addition, one of the required improvements to my old house was to a deck, which could be done in a variety of ways based on individual taste, and it made no sense to do it according to my taste.
Continue reading “Fix Up a Home Before Selling It, or Not?“
In Jack’s case it worked out well for him selling his house as is. It’s probably worth noting that it doesn’t seem like his house was in need of major repairs, like a roof or had structural issues.
Lastly, we want to leave you with some great advice from Ilyce Glink about repairs that you should make no matter what when selling your house –
So there you have it. It really does depend on your situation. Depending on the amount of repairs that need to be made will determine how long you have to wait before you are able to put your house on the market. The good news is that once all of the repairs are made and your house is in tip top shape, you will probably have a buyer in no time, and maybe even a bidding war with people competing to buy your house!
Looking for more home selling tips? Check out some of my favorite sources –