Sell House As Is or Fix It Up?
As you drive through your neighborhood and see sold sign after sold sign, you may be tempted to put your home on the market and make the move you’ve been dreaming of for so long. However, when you remember all the repairs and home improvement your house needs before you can list it, a thought occurs to you: what if you forego the fixing and list your home “as is?”
Whether to make repairs before selling your home depends on the state of the housing market, your timeline for selling the house, your budget and other factors. Here’s what to consider before you invest in home repairs.
When deciding whether to fix up your home or sell it as is, consider the condition of your home, the state of the housing market and other factors. Here’s when it makes sense to sell your home “as is” and when it might be wise to make repairs first.
What Does Selling a Home As Is Mean?
A typical home sale includes a home inspection to uncover any problems with the home’s structure or systems. When an inspection uncovers something that needs repair, buyers may negotiate a lower selling price, ask the seller to make the repairs or request a credit to cover the cost.
Selling a home as is means you’re not responsible for repairing any issues that pop up after buyers submit their offer. That could range from minor issues like cosmetic repairs to major problems like a cracked foundation.
When Might You Sell Your Home As Is
- You don’t have the budget to complete repairs. Home repairs are costly. A full HVAC replacement costs between $5,000 and $10,000, while replacing a roof runs from $5,000 to $12,000, according to HomeAdvisor. You may also find out some hidden issues that cost extra money during the repairing process.
- You don’t have the time and experience to manage repairs. Did you inherit a home from your parents? Are you transferring out of state? Are you the landlord tired of dealing with the rental properties? Are you behind on the mortgage payments? Does the house has major issues that make it unappealing to buyers? Does the house has safety or structural issues that could hinder getting a mortgage? The process of getting your home ready to sell is overwhelming. There is clearing the clutter, endless amounts of cleaning, organizing, and essentially inspecting every corner of your property with a magnifying glass. You’re overwhelmed by the quantity of work before you.
- You want a cash offer. Most homebuyers need a mortgage loan to pay for a house, but some can pay cash. Mortgage approval and funding can take up to two months, while cash sales can be completed within days.
- You’re willing to accept a lower price. As-is homes appeal to house flippers, investors or homebuyers on a budget. In return for accepting the home as is, however, buyers generally insist on a bargain price so they can profit from their knowledge on house renovation and risk management.
There are several situations when it may make sense to sell a home as is.
When to Fix Up Your Home Before Selling It
Fixing up a home before selling it can boost the sale price, balancing out the cost of repairs. Here are some scenarios where you might want to make repairs or upgrades before selling.
- You want to maximize the purchase price. Eight in 10 Americans would choose a home that’s move-in ready over one that needs updating, according to data from Coldwell Banker. Making repairs or replacing outdated systems can garner a higher price for your home. Enhancing your home’s curb appeal can help too—and doesn’t have to cost a lot.
- You have the time and budget to complete repairs and think it will ultimately be cost-effective. An experienced real estate agent can advise you whether repairs make financial sense and what changes will deliver the biggest bang for your buck.
The Bottom Line
Only you can decide if repairing your home or selling it as is makes sense to you. If you want to sell your house as is, please contact us at (757)-504-3022