4 Reason You Don't Have to Repair Your Home Before Selling
Updated: Aug 23, 2018
The important benefits for selling your home "as is" to an investor vs. selling to a traditional homebuyer - saving money.
Eric Luu (Project Manager)
Paulo Pangilinan (Project Manager)
4 Reasons You Don't Have to Repair Your Home Before Selling
Oftentimes homeowners are pushed to believe that they must repair and renovate their homes before selling on the market. While it’s true that homeowners are looking for ready to move-in and perfect structure condition type of homes, it doesn’t mean that no one will buy your home. In fact your home might even sell faster. If you feel like you may not have enough money to afford renovations or repairs on your home, why not look to sell it as it is? Investors like us provide homeowners with all-cash offers. Consider these various factors when it comes to evaluating your decision of renovating before selling or just selling, in order to assess what’s best for your situation.
Can You Afford the Renovations?
If you are currently living month-to-month or struggling with payments, it may be in your best interest to let investors like us take care of the repairs instead of paying out of your own pocket. There are a lot of other costs associated with renovations, but before those costs there are your own monthly and weekly costs to consider. Groceries, schooling for children, funds for retirement, there are a litany of costs and investments we must make personally. Those investments also take time, which makes it harder to afford giving time for renovations. Homeowners inexperienced in home renovation may be overcharged for repairs without realizing it. We have a lot of experience working with contractors, and we know what it costs to renovate homes. Unless you are doing the work yourself, it may not be worth doing the renovations. In the long run, your profits may be lower than what you spent for repairs. If you are currently facing any financial difficulties refer to our FREE financial consultation to determine your situation
Renovations Could Hurt - Doing Too Little or Too Much?
In order to get a return on investment, it is important to make the right choices in repairing specific parts of the property. As we’ve said before, renovations on a home could take up a lot of time and money and it may not be worth it for you as a homeowner. Contractors for various renovation projects are expensive, unreliable, and slow. Even if you were not enlisting the aid of a professional, shoddy work on said renovations doesn’t improve value either. For example, wood and aluminum framed windows with the panes replaced rather than new windows installed, aren’t meaningful repairs that can add value to a house. Overimproving your home could be an issue as well. A large renovation project may not yield the expected results, especially if the neighborhood contains smaller homes. Buyers who are looking into said neighborhoods may not be interested in a newly renovated property. This may result in your listing remaining on the market longer which may force you to lower your listing price below market value. Doing a home renovation is time-consuming in terms of planning and building. If you’re a busy person, planning and paying for a home renovation may not be the most convenient or prudent option.
Selling Your Home As-Is
Selling your Home As-Is, is a more viable option than some may believe. Imagine a home that needs a lot of work, think holes in walls, leaky faucets, creaky floorboards, and a broken electrical system kind. This is a home that can’t be economically fixed; at least not with a budget-saving plan. The costs of fixing these things could amount anywhere from 4-10% or more of your mortgage, per item and may not even improve the cost of your home. You can definitely find investors that are willing to take a house like that off your hands.
Buyers Want Homes Move-In Ready...Which is Costly
Buyers who want property, especially as a primary residence, will want the home to be move-in ready. As a result, the contract with the buyer will specify a minimum number of repairs and other regulations that must be met. To ensure that you are meeting these regulations, various home inspections will be necessary. Pest inspections, visual inspections, and foundation inspections are among some of the more expensive home inspection services. In addition to being responsible for paying for the inspections, they can also uncover other aspects of the property that warrant repairs. This whole process can be troublesome and lengthy, especially for you as the seller. All-cash offers for properties can help avoid the hassle and save time.
Selling your home doesn’t always have to be a difficult process. Repairing or renovating adds to the stress of your overall situation. The various costs and fees associated with repairs such as contractor fees, HOA (Home-Owner Association) fees, material costs, etc. really pile up and overwhelm a homeowner. Your home, regardless of condition can be sold! If the time and money consuming process of home renovation isn’t cost-effective to your situation, then selling would be best for you. We provide all-cash offers for properties in any condition, for your convenience. If you think you may need more assistance with financial planning and consultation, please check out our free financial consultations in order to best assess your situation.