About 5.34 million existing homes were sold in the United States in 2018. Some were in perfect condition while others required a full remodel.
As home sellers, the traditional school of thought is to do some upgrades in order to get the most money for your home. But some people are purposely in the market for a fixer-upper.
In fact, home remodeling tv shows like “Fit or Flop” and “Fixer Upper” are extremely popular on tv right now.
If you’re wondering, “should I sell my house as is or sink some money into remodeling,” keep reading. We’re sharing with you everything you need to know to make the right decision to sell your home quickly.
When You Should Sell Your House As Is
Selling a home as-is means you do not plan on making any repairs to the home. Any prospective buyers will purchase your home in its current condition.
However, in some cases, all you really need to do is to make some low-cost fixes to amp up your ROI (return on investment).
Consulting with a licensed real estate agent can help. They can give you their expert opinion as to whether an “as is” sale is the right decision.
When it’s Not Worth Making Repairs
There are certain items you shouldn’t bother repairing or replacing such as:
If your appliances are outdated, don’t bother investing in new ones. Buyers will probably have different tastes than you. These items are also not that expensive a buyer to purchase on their own.
However, outdated appliances are also a distraction for buyers.
It is worth it to give them a deep cleaning so buyers can see you’ve taken good care of the appliances.
You may want to invest in stick-on panels or appliance paint to improve the overall look.
Again, buyers will have different taste in colors and style. You probably don’t have to waste your time repainting rooms and updating outdated light fixtures.
Let the buyer deal with design-related improvements instead.
When Not to Bother Making Big Improvements
Keep in mind that without making major repairs, you won’t end up making as much money selling your home.
You may not be able to sell your home fast either.
Price Low to Attract Buyers
If the home inspector concludes that you have a roof on the verge of collapsing and/or the foundation is shaky, it may not be worth making such expensive repairs.
Keep in mind seller also won’t get any credits to make up for any necessary repairs.
If your home needs a lot of work such as fixing holes in the walls and completely redoing the electrical system, you may prefer to just price your home low enough to attract a few buyers.
In instances of large home repairs, most likely only contractors and flippers will want to make an offer.
If you need to sell your home fast, consider looking for companies that advertise, “we buy houses“.
Just make sure to do your homework so you find the ones that are reputable home buyers.
Buyers Can Customize the Home
It’s also possible to find a buyer who is purposely looking for a fixer-upper so they can get a great deal on a home. They then plan to customize the home to their own specifications.
This is especially true if your home still has good bones but the exterior is in shabby condition.
This allows buyers to end up with their dream home for less money than they’d spend if they built it from the ground up.
When to Make Repairs
There are times when making repairs is worth it.
If you have a little time on your hands and some extra money in your pocket to fund the repairs, you can end up with more money in your pocket in the end.
Start by listing what needs to be fixed in your home. Identify the ones that will add the most value.
Fix Major Structural Issues
Major structural problems such as replacing a collapsing roof should always be at the top of your repair list. Other repairs that will up your ROI are:
- Fixing holes in ceilings and walls
- Replacing broken appliances
- Repairing the HVAC system
- Replacing carpet
- Getting electrical systems up to code
- Fixing any code violations
- Replacing broken windows
You may also want to invest in replacing your damaged carpets or just putting a fresh coat of white paint on your walls.
If you’re looking for top dollar, these items can quickly and easily improve the overall look of your home for very little cost to you.
Fix Up Anything that Makes Your Home Easier to Sell
The general idea is to fix up your home so that it’s easier to sell. If you have wacky paint colors, it could be off-putting to potential buyers.
Giving buyers the sense that you carefully maintained your home while you lived there goes a long way toward getting a higher offer.
How to Calculate if it’s Worth it to Make Home Improvements
You want to calculate the ROI before you get started. The increase in home value must outweigh any home improvement costs, including holding costs.
Begin by getting an estimate of how much the improvements will cost. Factor in any extra time.
Compare Your Home to Similar Properties
Next, subtract this number from the amount you expect your home to increase in value. You can estimate this by comparing your home to similar properties.
If you find that the added value after all costs are factored in is a negative number, renovations are not worth the work.
However, if you find you get a positive value, it’s usually worth the time and effort to make these improvements.
Get More DIY Tips
If you choose not to sell my house as is, find ways to save money by doing some of the work yourself.
We have tons of helpful DIY tips on our blog. Check out some more of our posts today!