When you decide to sell your home, you have many different items on your to-do list to make it attractive to potential buyers for a quick sale. Depending on the condition and age of your home, there may be some repairs that need to be done. Some may be simple and inexpensive, but will add significant value to your home, while other repairs may be costly, which may not seem worth it. To decide whether or not to repair your home, there are two main considerations you need to make.
The Cost of the Repairs Compared to the Value Added
In some situations, you can sell your home as-is, which means that the buyer will take care of all repairs. When you do this, you have to set the price low enough that the buyer will be enticed to purchase the home, even when they know that they will have to put in a significant amount of money for repairs. This price typically is not just reduced by the cost of the repairs, but also an extra discount to compensate for the hassle of the repairs. Selling your property “as is” will be more attractive to investors looking to flip property or home owners looking to rebuild and only want the land and location.
Many times, by putting in the money to repair your home, you can sell it for a higher value, so you get the money you invested into the property back when you sell. You may have to take out a loan to cover the repairs, but as long as you sell the home for the right amount, you can pay off the loan, your mortgage, and ideally have some left over. Therefore, when you are trying to figure out whether or not to repair your home before selling, you should see whether the amount of money needed for the repairs will be less than the higher value you will get for your home. You should consult with a sales agent who has a good feel for how improvements will affect buyers interest and your potential price.
The Market Influence
The market will also have a significant influence on whether or not you should do the repairs to your home. If your property is in a hot market, especially in an up and coming area, you will most likely be able to sell it in an as is condition with minimal repairs. However, if you are trying to sell in an area where homes remain on the market for a long period of time, then it will be tougher to sell a home that requires a lot of work, so you may have to lower the price even more. Another way to judge whether the housing market will be open to as is property is to know the condition of the comparable houses on the market in your area and speak to a sales agent.
By taking the time to research the cost of the repairs against the market value of your home, you can make a more informed decision about whether or not to perform the repairs on your home before you sell.
