Date Posted: 2012-07-25 03:02:33
Site Posted: Myproperty.ph
When you make the decision to sell your home, one of the things that you consider is whether to sell it the way it is, or to attend to the things that need fixing. The truth is that there is no right or wrong answer to this one; choosing to sell as is or fixed depends on a lot of factors.
People who are looking at houses for sale to live in might consider buying a fixer-upper because their finances can’t buy them a home in better condition. However, keep in mind that no end user will want to buy a house that they’ll have to keep spending on to get it fixed. If given a choice, a buyer would rather buy a home in great condition for a certain amount than spend just as much on a home that needs major repairs.
On the other hand, people who flip houses for a living might not mind so much buying your house, even with its repair needs. House flippers are those who purchase properties with the intent of selling it off quickly, either as is or after they fix it up. They even fix up properties and put them up as houses for rent in order to have a steady source of income. Still, since they’re flipping properties to earn money, they want to make sure they’re not putting more money into the home than they can potentially earn, so they’re going to choose properties with minimal repair needs.
Consider what the real estate market’s like. If you’re currently experiencing a seller’s market, you can probably let some repairs pass when you sell. Keep in mind, though, that even in this kind of market, the property appraisal will still turn up a low price. In the event of a buyer’s market, don’t expect so much as a second look from buyers; unless the property is an REO, they won’t be too keen on a fixer-upper.
How quickly do you need to sell your home? If you’re planning to sell the property as is, you may have to wait a while before it starts attracting buyers. You can always price it way lower than what it would have cost if in better condition, but do it only if you’re prepared to take an amount less than you want for it.
If you’ve decided to do some repairs, think carefully about what you want to focus on. Look at your house and figure out how drastic the damage is. Figure out how much it would cost to repair them and think about how much your home will eventually cost after fixing them. Will the repairs improve your home’s value or set you back financially but not guarantee a nice return?
There are certain improvements that don’t necessarily attract more buyers or justify a high price, such as sky lights and a subzero fridge, so you can skip these. Instead, focus on things that actually matter, such as repairing leaky faucets and wall and ceiling cracks, replacing wrecked roof segments and broken windows and fixing air conditioning and other appliances included in the sale.
Jillian Cariola, Writer
(cover image by Lars Gundersen)
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