You hear plenty of stories of people fixing up their homes before listing them or negotiating repairs as part of the closing process. But why do people go through this process? After all, they’ve been living with whatever issues the home has, so does it really make a difference?
Importance of Repairs
Repairs can range from small things, like holes in the wall to larger issues, like replacing damaged floors. When people are looking for a new place to live, they want somewhere that feels new, even though it isn’t a new build. Something that may be a fun memory or a quirk to your family may look like neglect to a potential buyer. Making repairs is a way of putting your home’s best foot forward to fetch the best market price possible. It also speaks to potential buyers about the way you care for your home. If you can point to recent repairs, they are left with the impression that this house is a good investment, rather than a money pit they will spend all their time repairing.
When to Sell As-Is
Just because you can make repairs doesn’t mean that you should or that you have to. If you look at your local real estate market, you are sure to find at least a few homes that are listed in “as-is” condition. This means that there are issues and repairs that may need to be made, but the owner isn’t willing to make those a part of the selling process. This is often employed when there are large-scale repairs needed that the owner can’t handle, the home has been unoccupied for a while, or the cost of repairs is so high that the owner is willing to discount the house to get it off their hands. If you find yourself in one of these situations, you can try to list your home as-is, or you can sell it to a cash buyer. Cash home-buying companies don’t require you to make any repairs, and they will pay you a fair market value for the condition of your home, which isn’t something you are guaranteed in the traditional real estate market.
When to Consider Repairs
If you are thinking of making repairs, there are a couple of things to look at before you invest any money. The first thing to consider is the cost versus the return. If you are going to be spending more money on the repair than it will generate in value, it might not be a good idea. You should also consider your repair skills and whether this is something that you can handle. Your timeline for moving out of your home is also an important factor. If you need to move quickly, you don’t want to spend a lot of time fixing up your home and getting too close to your deadline.
The decision to make repairs or to sell your home as-is is something you should carefully consider. While both are acceptable options, what is best for you and your home will depend on your timeline, financial resources, and the condition of your home.
Need to sell your home as-is? Check out our information on buying your home here!
