If it’s time to sell your house, you might be wondering if you should make repairs or sell it as is. While it’s true some updates add to the value of your home and may mean more money, they may not be necessary.
Depending on your situation, you may need to sell your home fast. Whether you need to move soon or you’re facing foreclosure, there are some instances where renovations aren’t worth it.
Find out more about whether those upgrades are worth the money of if you should sell as is instead.
When it’s time to sell your home, you should be able to tell whether the repairs needed are cosmetic or serious. Older homes and houses suffering from water damage often need more expensive repairs, for example.
Some homeowners struggle after a major disaster or an accident like a burst pipe or leaky toilet. And while most causes of water damage are covered by homeowner’s insurance, some may not be. When it’s time to sell, this can be a burden on the homeowner.
For instance, flooding or poorly maintained pipes aren’t covered by standard policies. Also, many standard policies don’t cover homeowners that live in a high-risk zone for flooding. If you don’t buy flood insurance and your home floods, that could be a costly mistake when it’s time to sell.
Other major repairs such as roof replacement, HVAC replacement, window replacement, foundation repairs, etc. may prove to be too expensive to do yourself and therefore might be worth to sell as is. Repairs may even cost more than the value of the home. In this case, it would be worth it to sell the home as is instead.
Some homes may only need minor, cosmetic fixes. If you plan on fixing up a house to sell, these cosmetic repairs could make a big difference. If you are aiming to sell for top dollar, these cosmetic updates are absolutely necessary,
Faded or outdated paint jobs are easy and often inexpensive fixes. If you have the money, a new coat of neutral or white paint can refresh the look of your home.
On the other hand, removing old wallpaper takes a lot of time and effort and it may not be worth it. Some buyers can look past dated wallpaper or even ugly paint colors since it doesn’t impact the function of the house. Others cannot. If you are looking to sell for top dollar, these types of cosmetic changes are essential.
If you are trying to “sell for what your neighbor got”, you will need to address the old cabinets in the kitchen, scuffs on the floors, dated light fixtures, etc. While replacing and updating these areas of your home add value and are necessary when selling for what you feel your home is worth, they aren’t necessary if you plan to sell as is.
If you need to sell fast like if you’re currently in foreclosure or facing pre-foreclosure, minor repairs and updates aren’t necessary. You can sell “as is” and receive the money you need.
If you do have the budget, some repairs greatly affect the value of your house. Before you start any significant repair work, make sure you know the current market value of your home. You don’t want to put more into your house than it’s worth.
If you have the chance, visit other homes for sale in your area. This allows you to see the condition of these homes in your neighborhood and compare them to your own. Take note of what the homeowner did or did not do before listing the house.
Go through your homes and make a list of areas that need work. Patching up holes, fixing broken windows, and replacing broken HVAC systems are repairs that make a big difference in the value of your home.
Other issues that make your home look run down include leaky faucets, stained or old carpets, and missing roof shingles or a damaged roof. You can sell your house as is without making these repairs, but you won’t get as much as you wanted.
Many people selling their homes wonder if it’s necessary to update old kitchens and bathrooms. Kitchens and bathrooms are two of the best areas to update if you’re looking for good investments, but you don’t have to renovate them.
While buyers will appreciate a more modern kitchen or bathroom, ultimately these are cosmetic fixes. They don’t impact the function of your house. A cash buyer (investor) won’t care. A retail buyer will.
If you do decide to update one of these rooms, don’t stop halfway through a renovation. If you want to update the kitchen, replace the cabinets and backsplash at the same time as the countertops. This ensures the room looks cohesive and put together.
If you don’t have the money to sink into a big renovation, consider making small and inexpensive updates. For example, switching out the hardware on old cabinets can make them pop.
Is your house similar to other homes in the neighborhood? Even if you’re selling a house that needs repairs, upgrades that cost more than the market value for the house aren’t worth it.
Evaluate other homes for sale in your neighborhood. Do you live in an area with a lot of older homes? If so, you may not get the return you want even if you put money into fancy upgrades.
In this case, spending the money on brand-new appliances or granite countertops might not be beneficial to you.
There are pros and cons to selling a house in “as is” condition. If you need to sell fast because you’re moving or because you’re facing foreclosure, this may be your best bet.
And there are benefits to selling your home as is. It’s much faster than putting your house on the market. Remodels and renovations are also stressful and time-consuming.
Not everyone has the time for remodeling, either. And if you don’t do the work yourself, hiring professionals can take a huge chunk out of your budget.
You may not get as much of a return when you sell your home in its current condition, but in some cases, this may be your best option. This is especially true if the repairs needed cost more than the value of your home.
Now that you know more about which home repairs make a difference and which ones you can skip, you’re ready to take the next step.
Are you in the Austin area and prepared to sell as is? If so, we can help get you the money you need regardless of the condition of your home. Learn more about our process and get your fair cash offer today.
Lisa is a local real estate investor in Austin Texas.