The dilemma is real when trying to sell your home: should you repair those things that you’ve been postponing all along? Or should you sell the house as-is? The correct answer to both questions is that it depends on your situation. If you are in a tight financial situation that you want to sort out as soon as possible, your decision will be different from that of a person who is not in a hurry to sell. This article will break down the decision in two.
When do you sell the home as-is?
When your home equity is under
If your home is about to be foreclosed because of negative equity, selling the home as-is could save you a few bucks in the process. It will eventually be a loss to you, but better than losing the property altogether.
If you don’t have repair money
If you are selling the house to get cash, you probably don’t have another source of money. Repairs can be costly. For example, redoing the interior paint in a typical two-bedroom house will cost at least $2,500. So, if you are short of cash, selling the home as-is makes much sense.
If you want to take advantage of a wholesaler’s opportunity
If there is a wholesaler who is actively buying a property in your location, you can sell the house as-is. According to socalhomebuyers.com, distressed properties are better off paid in cash. Some owners are in a situation where they don’t want to do anything other than sell. They don’t have the time to think of remodels. Furthermore, they probably don’t think they can afford what their ideal market is looking for in terms of remodels and features.
Pros and cons of selling as is
As noted above, you can raise cash fast, preventing a potentially bad situation from getting worse. You don’t need any money to sell the house as-is. The disadvantage is that buyers will try to low ball you to get the property on the cheap. You will most certainly have low bargaining power. The final price will not be appealing.
When do you fix it?
When you have time to yourself
Remodel and repair choices should be a product of research. What are customers looking for? What do customers want in that property market? What do they want in their kitchen? Is an energy-efficient HVAC system a major selling point? Some will not affect the asking price and might even have a negative impact. Doing such remodels is futile. When you have time to make sensible decisions about remodels, then it is worth it.
When you have money to fix the house
Some renovations do not use much money, but their effect on the price and selling speed could be tremendous. Making your home ready to move in is a great selling point. If you have some money to inspect and fix all the minor problems, fixing will be better. Every renovation must break even to make sense. If it does not, you are better off staying with your money.
When you want to reap the maximum financial reward
Some responsible remodel for a property worth about $300,000 could cost up to $375,000 and bring the asking price of the property up to $500,000. Failing to do any renovations could easily force you to accept $275,000 for the same property. However, do not develop such lofty numbers. Most renovations lose you money, but they can certainly make your home more appealing to buyers. Sometimes a good cleaning could bring in better returns on investment than a kitchen and bathroom remodel combined.
The pros and cons
The advantage is that you can make your home appealing to a larger pool of buyers. The asking price will also be in your favor because the risk of a knockdown is virtually nonexistent. The disadvantage is that it is time-consuming, financially demanding, and risky. Sometimes it might not pay off to spend on some items.
Whether you are better off fixing a property or selling it as is, you still need to be transparent. Non-disclosure of certain things will come back to bite you. Whatever choice you choose, ensure that you can get the best deal out of it. If you are selling to a flipper, you will experience some demoralizing proposals. If you have decided to fix the house, make sure you are putting your money responsibly. Some renovations will not add any value to the home. Besides, some upgrades will expose problems that are even more glaring.
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