Property Repair - Worth It OR Should You Sell "As Is?"
To fix up your house before listing it or sell it as is. It’s an age old debate for a reason—the answer is complicated and case-specific. It depends on multiple factors, including your personal reasons for listing and the features of the real estate market you’ll be entering. For clarity’s sake, selling your home “as is” means that you have decided not to make any further repairs once it's on the market. This kind of listing means that, regardless of a home inspection’s results, your prospective homebuyer would be buying the home in its current condition. Considering its final nature, it’s important to make an informed decision by considering three key aspects: what kind of market your listing will enter into, who buys a home “as is,” and which home improvements (if any) are most worthwhile.
What’s The Market in NE Ohio?
Ready for the truth? We used to have a seller’s market. Pre-Coronavirus, we enjoyed a flaming hot real estate market where sellers could get away with fewer repairs prior to listing their home. Now, we’re entering an age of buyer empowerment, and it has implications for the nuances of your house sale. Of course, a property in need of repair will net a lower price than its flawless counterpart in any kind of market. But, in a buyers market, a home that is not comparable to surrounding listings will receive even lower offers than before the market downtick. This doesn’t mean you can’t list your property in “as is” condition. It just means you need to be intentional in your strategy for repairs.
Who Buys an “As Is” Property?
House flippers buy properties in need of repair at far below market value and then perform the work themselves or subcontract it out. Then, they’ll turn around and try to sell the house for a profit. You can expect an investor like this to make an offer on your “as is” listing, but it won’t be anywhere near market value, especially if there are major repairs that need to be made. Even still, it might be the right decision for you if you are trying to avoid foreclosure or need to offload the house immediately for another reason. A second group of potential buyers for this kind of listing is that of homebuyers looking to create their dream home on a budget. These buyers are sometimes willing to purchase a home with a shabby exterior if they think they can make it their own, but major structural or systemic issues won’t appeal to these buyers, either. It seems that, unless you’re experiencing severe extenuating circumstances, it’s logical to consider making some repairs prior to listing, especially if you’re planning on listing your house in “as is” condition.
**Note: Local home liquidation services exist that can provide a quick cash solution. They’ll purchase your home and all the unwanted items it holds for cash and provide a stress-free experience. More on that at blog’s end!!
Which Repairs Are Worth It?
If you’ve decided that you’re willing to evaluate a list of potential repairs, start by writing down everything that could possibly be done to the home. Once you do that, a discussion with your real estate agent will help you prioritize the most important ones, since the repairs you make should, at least partially, be guided by the ever-dynamic real estate market. Your agent will likely tell you that major structural problems should be at the top of your list, as buyers sometimes project costs far above what you would actually pay if you did them yourself. These false projections can cause you to lose out on potential offers. So, if your home needs major repairs, like a new roof or HVAC system, it’s probably in your best interest to take care of those issues.
Deciding which, if any, repairs you should make before listing your home is clearly a multilayered process. The truth is that the best decision you can make when considering these issues is to consult with a licensed real estate agent. And, whatever your decision, VNTG Place can be of great value. We specialize in home restoration and design and can certainly help you maximize your return on investment if you decide to make repairs. Alternatively, if you’re sure you don’t want to put any more work into the house, we’ll buy your house today, including the furniture! If you’d like more information on how we can create a stress-free estate liquidation for you, check out our website. Then, reach out with a service inquiry request, and we’ll be in touch shortly afterward!
