Are you ready to list your home for sale but are worried it won’t sell due to its condition? Maybe you’ve taken steps to update the exterior but the inside still needs a lot of work. From serious issues to simple outdated cosmetic updates, it can be hard to know whether to spend the money to fix it up or sell a house as is.
It comes down to a variety of things. You’ll want to look at the conditions of competing homes for sale, the current state of the real estate market, and the likelihood that you’ll actually make more money if you invest in repairs. We see it all the time, a lot of sellers put way too much money into fixing up their home and the buyer doesn’t want to pay for those repairs
Keep reading as we talk about everything you need to know before you sell a house “as is,” including the pros and cons.
Before You Sell A House “As Is” – Here’s What You Should Know
There are plenty of people who are selling homes that are in need of some repairs. They aren’t always easy to sell, but they do appeal to certain buyers. Talk to your realtor to determine what your best option is. They’ll help you take into account the extent of repairs that should be made and tell you the state of the market you’re trying to sell in. Here we describe what it actually means to sell a house “as is” and whether or not you should make some repairs, and the pros and cons of the entire process.
What It Means To Sell A House “As Is”
Basically, when you list a home “as is,” you’re telling the buyer that you are aware of the state of the house but aren’t taking responsibility for the repairs it needs. Usually, buyers who choose to move forward with one of these “as is” homes have an understanding that negotiations regarding repairs will be extremely limited. They know that they might be taking a bit of a risk, but that’s why these fixer-uppers are listed for less.
When it comes to getting buyers to choose your home, though, you’ll have to be strategic. You want to price it well so that you make a profit, but also list it low enough that buyers will be interested. Your agent will most likely market your home to those interested in fixer-uppers. There are plenty of buyers interested in buying cheap homes and doing all the renovations themselves – just turn on HGTV and you’ll see what we mean!
You’ll most likely have great luck if you’re in a popular neighborhood, even if your home isn’t very updated. Those people who are ready to design their dream home from scratch will jump on the opportunity, and so will those investors who flip homes for a living. Our advice is to just keep your expectations in check – a fixer-upper is worth its current condition, and shouldn’t be priced for it’s potential.
Should You Do Some Basic Repairs?
Any agent will tell you that you should consider the cost of proposed improvements against the current market value after the repairs/upgrades have been completed. If the repairs you make won’t actually increase the value of your home, then it won’t be worth the effort. Consider what repairs other people selling in your area are making. Visit other open houses and see what amenities are being offered. Again, your agent will be able to give you comps for your neighborhood.
If most of the other homes for sale have a newly updated kitchen or have more bathrooms than you currently have, these might be the areas that you focus on first. These homes are your competition so you want to be able to stand out or match the value. However, we want to remind you that you don’t have to go all out and spend thousands upon thousands. A minor remodel can do wonders, even just simply painting the cabinets and updating the hardware can completely transform your space.
We suggest making a list of everything that’s defective and decide what might be worth it to fix. If buyers see just a couple broken or worn out items, then they might wonder what else is wrong. There are a few minimum improvements your agent might suggest you make, like patching holes, removing popcorn ceilings, updating broken appliances, fixing leaky faucets, etc.
At the end of the day, we suggest getting your home inspected before listing it so that there are no surprises when potential buyers bring it to the negotiation table.
Pros and Cons of Selling “As Is”
Let’s break down the pros and cons of selling a house “as is.”
Pros
Definitely the biggest advantage of an as is sale is the fast closing. Plus, the average time from beginning renovations to selling can be anywhere from 6 months to a year, depending on the condition of your home. Selling a house without the repairs process can happen in just a few weeks. It also saves a huge amount of money and saves you the headache of going through a renovation while also searching for your new home.
Cons
There are several cons to selling a house as is. One, an ugly house really isn’t worth as much as a freshly updated one. Second, when you renovate an old house you can build market value. Buyers will pay more for the benefits of renovations without having to spend the money themselves. Not surprisingly, they will pay much less when they have to spend their own money for renovations. The biggest con is that the majority of home buyers aren’t interested if you’re selling your home that is falling down or in really poor condition.
Contact Harbor Realty – We Can Help
We know that figuring out how to sell a home that needs a lot of repairs is not a decision that can be made overnight. Hopefully, we’ve given you enough information so that you can carefully weigh the pros and cons and determine the best route for you. You’ll want to weigh all the pros and cons and talk to your real estate agent about what the best course of action might be.
When you work with us at Harbor Realty, you’ll get advice throughout the entire process, and we will walk you through how to get the most bang for your buck. Making repairs isn’t always the best idea, but sometimes it works out in your favor. Give us a call today and let us answer your questions about whether or not you should sell a house as is. We are here to help!
