Should I Sell My Home as Is or Fix It Up?
Did you know that more than seven million houses sell each year in the US? Real estate moves quickly in this country, especially in recent years.
The market is hotter than ever and real estate is flying off the shelf faster than it came onto the market. If you want to cash in on high home values, now is the best time to sell.
Should I sell my home as is, or fix it up first? That’s the question everyone is asking.
The good news is that even if your home is ugly, outdated, and in disrepair, there’s a good chance you can sell your house “as is” and get decent money for it.
But it might be worth the effort to fix it up first if you want some extra cash in the bank. Keep reading below to determine what the best option is for you.
Understanding the Current Market
In 2022, the market is still sizzling across the US. Real estate shut down during the first month or two of the pandemic back in 2020.
But it quickly exploded, as the nation saw massive demand for homes and surging home prices. Since then, we’ve been in a two-year-long seller’s market.
Most homes are sold in days, not weeks. Many sell in hours. Bidding wars are common. And those with great houses in good neighborhoods can make well over the asking price.
No one knows how long this trend will continue. The appreciation may be slowing down a bit, but it’s still hot. Some think the market will crash and correct, others think it’s only up from here.
Knowing the state of the market is critical for deciding what level of home sale profit to take.
In this market, a house in great condition can net you at least the asking price. In many cases, you can get over the asking price, putting more money in the bank. But if your house isn’t in great shape, you’ll need to spend quite a bit to make this happen.
On the other end, even crappy houses are selling fast right now. There’s such little inventory that buyers are acting fast on ugly houses, knowing it’s their only option.
You won’t make the most money, but you can sell fast and be done with it without having to do any work to it.
Look at Comps
Comps are sales of other similar homes in your area. You want to see what other houses like yours are selling for.
This will give you a good indication of what to expect for your home. Are outdated houses selling quickly, or are they sitting on the market? It’s largely due to your neighborhood.
If people want into a particular neighborhood, they’ll buy anything they can get. But if the neighborhood is mediocre, the only chance of you selling would be to make at least some cosmetic home repairs to attract buyers.
Do research to see what all of the other houses in your neighborhood are selling for and determine if they were recently updated or sold as-is.
Understand Home Repairs Costs vs ROI
If you’re lucky, your house might only need deep cleaning, a fresh coat of paint, and yard cleanup. These are all inexpensive tasks that can make a bland home look more appealing.
If you aren’t so lucky, then you might have an outdated kitchen, an ugly bathroom or two, or damaged flooring.
In these cases, your cost to make upgrades will be much higher. You’ll have to calculate your potential return on investment.
Adding a new roof to the house might cost you $15,000. But it might only boost your home’s value by $5,000, making this expense a hard pill to swallow.
Certain tasks might be worth the expense, however. If you can update the kitchen without rebuilding it completely, you can boost the value of the home without spending too much.
You can do this by replacing appliances and painting cabinets.
Likewise, repairing or replacing a broken garage door would do the same. The value you get s worth more than the cost.
Before spending any money on upgrades, you need to know what the potential ROI is.
Home Repairs Worth Making
So what are some of the upgrades and repairs that are almost always worth making? If there’s anything that’s damaged that would only cost a few hundred dollars to fix, it’s probably worth the work.
For example, if there’s a leaking toilet or sink, having a plumber take care of that will help.
Or if you have a cracked or broken window, having the glass replaced will make the whole house feel better.
Painting the house, either inside or out, is usually worth it. Most buyers want a neutral-colored house, so if you have any worn-out paint or bright colors, you should take care of that.
Any inexpensive tasks that would improve curb appeal are also worth it to attract multiple offers. This could be a new front door, minor landscaping, tree pruning, a new mailbox, new light fixtures, and so forth.
Sell My Home As Is; The Benefits
If you aren’t handy and do enjoy doing home remodeling projects, then now is actually the perfect time to sell.
In a regular market, you might not be able to sell your house at all. Or if you did, you’d only get lowball offers from investors.
But in a hot market, you can likely sell your outdated house without lifting a finger. You can likely get close to the asking price. And you can walk away and be done with the headache of the house.
You can make the process even easier by not having to deal with a real estate agent and property listings. Just find companies that specialize in buying houses for cash.
They can make you an offer on the spot, and provide you with the cash in just a matter of days, saving you weeks of effort.
Making the Final Call
So should I sell my home as is? Only you can answer that. If the home is in good shape but could be a bit better, then making a few upgrades might be worth it to hopefully cause a bidding war.
But if the house is too outdated, and fixing it up would cost tens of thousands of dollars, it’s probably best to sell it as-is and be done with it, before dealing with a potential foreclosure.
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