A fresh coat of paint and a deep cleaning can go a long way when it comes time to try to sell your home. But what if you just don’t have the time—or money—to invest into other seemingly necessary home repairs? If you can’t afford to fix up your home before you sell it, you may be wondering whether it is OK, or even feasible, to attempt to sell it as is. Maybe your kitchen and bathrooms are extremely dated, or perhaps your roof shingles need replacing. Can you get away with putting your home on the market in such condition?
The answer is, it depends. It depends on the market and competing inventory, it depends on your timeline for selling your home, and it depends on your expected return on investment. Before making a decision either way, you first need to evaluate whether or not you can practically afford to fix up your home, and what your budget would be for home repairs. FHA and home equity loans are options for certain eligible home improvements.
If you’ve determined that you can’t afford to fix up your home before you sell, here’s what you need to be prepared for.
Settling for a lower price
If your faucets are leaky, your wiring is on the fritz or your house is not structurally sound, then you obviously will have to settle for selling at a lower price than you may have originally hoped. If a home is not move-in ready, then you’re going to have to incentivize buyers by offering it at a lower price. Also, buyers often overestimate the cost of home repairs, so they may not be willing to offer anything but a price that is lower than the home’s actual value.
Selling to an investor
Depending on the degree to which your home is in need of repair, it may only be attractive to contractors and flippers. If you’re the type of seller who does not care who ends up with your home, then this may not be an issue. Some sellers, however, prefer that their home is not sold to an investor; but, depending on the physical state of your home, you may not be in a position to be picky. In general, the more repairs you need, the smaller the chance that it will be purchased by a traditional buyer and the larger the chance it will be purchased by an investment buyer.
Benefitting from a pro fixer-upper market
If your home has fallen into the “fixer upper” category, this could also work to your advantage (depending on the severity of the situation). Some traditional home buyers are specifically looking to buy a fixer upper home—whether they consider fixing up a home a hobby, or whether they just prefer the look and feel of older homes. Or, the fixer-upper buyer may not be able to afford a newer home in need of fewer repairs. Most buyers who fall into this category are looking for homes in need of light repairs, or they will offer a much lower price to account for larger repairs that need to be made.
Working with a Realtor
You may think that it is unnecessary to work with a Realtor if you are planning to do a quick cash transaction on you home, but doing so could hurt your chances of maximizing the amount you receive from your home sale. Without a Realtor to guide you, you could end up getting scammed by one of those fast cash home-buying companies, who will almost always be looking to buy at a significant percentage lower than your sale price.
Waiting for the best offer
If you can’t afford to fix up your home before you sell, you may also be looking to make the sale a quick one. However, that does not mean you should jump on the first offer you receive. If your home is priced low, you will likely be receiving multiple offers. With this type of buyer competition, you should wait as long as you are able in order to vet the best offers and get the most money you can, which may end up being closer to your desired price than you originally thought.
If you can’t afford to fix up your home before you sell, it’s not the end of the world. As long as you are willing to settle for a lower price and are flexible as to who purchases your home, you can still have a successful home selling experience.
For more real estate advice and guidance, continue to follow the Ryan Roberts Realtor blog! And for your real estate needs in Auburn, Opelika and Lake Martin, contact Ryan Roberts today at 334-750-9872.
