Tips for Selling a House That Needs Repairs
Selling a house that needs repairs is no easy feat. You have to make the difficult decision between selling the house “as is” or absorbing the cost and time involved in property renovations.
It’s important to carefully weigh the options, based on your budget, timeline and desired list price. For example, if you have a specific figure in mind, you may want to fix up the house to reach it. However, you have to also consider whether that investment will be worth it in the end — and if you have the funds available to pay for it up front.
Here are three options to consider when selling a house that needs repairs.
Option No. 1: Sell the House “As Is”
The first option is to sell the house “as is,” which means that the buyer is purchasing it in its current condition, without any changes being made to it. It’s essentially a “take it or leave it” situation for the buyer. It’s important to note, however, that the buyer can still request a home inspection. If they do, it’s up to your real estate agent (or you if it’s for sale by owner) to set the expectation that no major repairs or upgrades will be made.
Homeowners who sell their property “as is” often have to accept lower offers, as a result of foregoing major repairs or upgrades.
Option No. 2: Complete Major Repairs and Upgrades
If you’re hoping to put your house on the market at a higher list price, consider completing repairs and upgrades that will make it more marketable. To do so, you’ll have to have enough funds to cover the costs up-front. For instance, you can expect to pay between $2,142 to $7,419 to repair your property’s foundation, according to HomeAdvisor.
Property upgrades can also help make an old house more desirable. Before making any major updates, compare the cost of the job to how much you might recoup in the property sale to determine the ROI. The Remodeling 2021 Cost vs. Value Report compares the average costs for 22 remodeling projects with the value those projects retain at resale in 150 U.S. markets. As one example, asphalt shingles cost an average of $28,256 to replace and have an average resale value of $17,147, according to the Remodeling 2021 Cost vs. Value Report (www.costvsvalue.com).1 That’s a 60.7 percent ROI.
For those with restrictive budgets who still want to make a profitable sale, there’s a third option.
Option No. 3: Sell Your Property to a Homebuying Company for Cash
Sometimes, it can be difficult to sell an old house that needs work. Thankfully, there’s an easier option that allows you to both sell your house “as is” and get a great price for it. Consider selling your property to The Buy Guys. As a homebuying company, we pay cash for properties “as is” in Florida, Georgia and Alabama. You can also receive payment as quickly as five days from receiving a signed contract. No inspections, closing costs, or brokerage commissions. You don’t want to jump through hoops to sell your property and we don’t want you to either.
Call us today for a free, no-obligation cash offer: (855) 947-5145.
Source:
1. © 2021 Hanley Wood, LLC. Complete data from the Remodeling 2021 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
