Considering whether to sell your home as is or invest in repairs? Your decision will depend on factors such as your house’s condition and the housing market’s state. Before listing your home, it’s crucial to understand which home improvements can increase its value and enhance the likelihood of a quick sale. Some enhancements yield a high return on investment, while others may not be worth the time and money.
Many sellers overspend on frustrating home repairs before selling their homes. They fix issues that buyers might overlook or not be willing to pay extra for. Before investing in improvements, consider the following checklist.
What Is the State of the Real Estate Market?
In a robust real estate market, homes may sell quickly and attract multiple offers. You can often sell with fewer repairs in such a seller’s market. However, a home needing repairs will still fetch a lower price in any market. In slower markets, buyers may overlook homes requiring work.
What’s the Condition of Comparable Homes for Sale?
A comparative market analysis (CMA) provides insights into recently sold homes in your area. Your agent can furnish you with a CMA, helping you gauge whether your home offers more or less than similar properties.
What’s the Likelihood of a Return on Your Investment?
Certain repairs and improvements are more likely to pay off than others. For instance, even a minor kitchen remodel can increase your home’s value by over $18,000, while replacing the garage door can boost resale value by over $3,000.
Consult your agent before making repairs to weigh the pros and cons based on your specific situation and home.
There are instances when selling the house as is makes more sense. When a seller lists a house as is, it typically means they won’t make any repairs before the sale or offer credits to the buyer for post-transaction improvements.
For a property requiring extensive work, such as major structural issues or widespread damage, it may be more practical to price the house low to attract multiple offers. In such cases, only contractors and flippers are likely to make offers.
Do Homebuyers Want Fixer-Uppers?
While some homebuyers express interest in fixer-upper homes, they generally seek properties needing only minor cosmetic repairs. Buyers keen on fixer-uppers often can’t afford a pricier home or aim to profit by renovating the property themselves.
Most fixer-upper buyers are willing to undertake simple repairs like painting walls and installing new carpeting but prefer avoiding major structural work.
Before Making Home Improvements
Smart sellers should weigh the cost of proposed improvements against the home’s market value post-repairs. Some upgrades may not provide a good return on investment. Kitchens and bathrooms typically yield the highest returns, along with other improvements like replacing siding windows, adding a deck, or installing a steel front door.
Fixing Up Your Home
Create a list of all defects, damages, or wear in your home. Buyers may doubt the home’s overall maintenance if they notice risky points for their business during the viewing.
Consider minimum improvements before selling, such as patching holes, fixing broken appliances, and repairing leaky faucets. Replace worn carpeting, repaint walls, and update outdated fixtures.
The Bottom Line
Before deciding to sell your home as is, gather information about the housing market and other homes for sale in your area. Then, assess which home repairs will likely yield the highest return on investment.