When registering your house on the seller’s market, determining whether to fix it up or not is dependent on whether the real estate market is cold or extremely hot at the time. If the latter, you may get away with a few fix-ups. However, as a general point of reference, any home that requires fixing will almost always fetch a lower price. In slow markets, buyers will likely not bother to view a home requiring repairs, let alone consider buying it. In this article, we look at some of the determinants that will help you decide whether to fix up your home or sell it as it is.
Time
Constraints
The reason behind why you want to sell
is one of your top considerations, especially if you are constrained for time.
You may be facing foreclosure, and selling it as-is would be more
advantageous as you will likely get a fast buyer. Of course, you will have to
lower your price considerably to factor in costs for the required repairs.
Return
on Investment
When considering fixing up your home
before selling, consider the costs of repair. You can then compare that to how
much you would add to the as-is selling price. It ought to give you a
good return on investment else; it isn’t worth the time, effort, and resources.
Selling
As-Is
Selling as-is may be more
advantageous if the cost of repairs is likely not to reclaim itself upon
selling. Contractors and Project Managers, also known as fixer-uppers, will
most likely be your prospective buyers. This is because they have the time and
resources to fix up dilapidated houses and then sell them at a profit upon
completion. Many first-time homeowners may consider it cheaper to purchase a
property that needs fixing on an as-is basis then fix it up themselves.
This would accommodate renovations to their taste. It would also facilitate
upgrades of their choice without too much waste of repairs. Repairs you would
otherwise have done that they would not have found suitable.
Repairs
Required
Whether your property requires structural
or aesthetic repairs is another determinant. For aesthetic maintenance, this
would most likely need coats of paint and a few cracks to be fixed. This should
not be neglected. It may give prospective buyers a lack of confidence in
whether everything significant is running correctly. For structural fixtures
like a broken-down HVAC system, or a leaking roof, you may want to consider
fixing these before putting your house on the market. Remember, a house buyer
already has deposits and legal fees to worry about. An additional cost of
repairs to factor in may be more off-putting than it would be enticing.
Neighborhood
It is important to tour around your
neighborhood as you check out the condition of the properties around and know
what's trending. Pay keen attention to added fixtures like an
upgraded kitchen, for example. Look out for For Sale signs and Sold
signs and compare the state of those properties with yours. Suppose your
kitchen design is outdated. Then it may be inevitable to fix yours as you
upgrade before selling.
General
Cosmetics
Selling an empty house is sometimes
more difficult than selling a furnished one. With furniture, it gives the
prospective buyer a feel of what the property would actually look like. This,
therefore, means that if your furniture is old and worn out, you may want to
replace it to upgrade the general feel of those who walk into your home. After
all, you can carry this with you after a successful sale, so don’t count this
as a fix-up expense.
Before
Fixing Up Your Property
Despite all these pointers to
consider, and before fixing up your property, it is advisable to consult your
real estate agent and seek direction as they are well versed in these matters.
By doing so, you will also be able to get an estimated value for your property as-is.
With this figure in mind, identify the costs of renovating, and see if it makes
sense for you in the long run. Get access to property cash buyers, who will, at no cost to you, give
you a cash offer if they find the property feasible. These will help you
determine if you need to do the repairs or if the cash offer is acceptable.
