Fix My House or Sell? 3 Questions To Help You Decide

//Fix My House or Sell? 3 Questions To Help You Decide

Fix My House or Sell? 3 Questions To Help You Decide

 

Due to life changes, you are considering to sell your house. Aware of the current condition of the home, you wonder if you should make repairs or just sell the house “as is.” To help guide the decision, try asking yourself three questions:

1. Will repairs increase the home value?
2. What are the benefits of a sold “as is” option?
3. Is it better to make gradual repairs then sell later?

The most important variable, to the home selling decision, is the knowledge of the current state of the housing market. The Housing Market Report offers both regional and local statistics in pricing, days on the market and number of active listings. Understanding market trends will help determine the right time to sell. Other resources for local market trend reports are Zillow and Movoto. .

For a personal look, drive around your immediate area. Check “For Sale” signs on neighboring lawns. The home offered behind the sign is your local competition.

Take notice of all the “For Sale” signs in your neighborhood. If they are not disappearing, this could be an indicator of the success of the market in your area.

Once you understand the state of the market and want to sell, you can then decide on the approach to get your home listed. Determine your goals by answering the three questions:

1. Will Repairs Increase the Value of the Home?

If getting the best return on your investment is the goal, recognize the difference between repairs and improvements.

Repairs fix broken or worn items. Painting, fixing a leaking roof or replacing worn kitchen cabinet doors with new ones are apart of home maintenance. These types of repairs rarely add value to the home. However, it can help to pass home inspections.

Home improvements may increase the value of a home because the original offering is altered to present a more modern appearance. The value of a home may increase by:

renovations of a kitchen and bathroom
replacing major appliances with modern and energy-efficient models
expanding square footage by adding a room or exterior features, such as a deck

Household repairs are necessary to maintain the foundation of the house. Without a strong foundation, renovations are meaningless. A renovated bathroom will never outshine a leaking roof.

The best way to determine if a renovation will add value is to ask, “Will it make an impact on the buying decision?”

2. What are the Benefits of the Sold “As Is” Option?

The goal of this option is to release the home quickly. Unforeseen circumstances may influence this selling option. Lack of finances, stressful structural issues, and the need for a quick turnaround are just a few reason why a home owner may choose this option.

The advantages may just outweigh the disadvantages in this process. Consider both perspectives to determine expectations.

Advantages
• Minimal expenses in preparing the house for sale
• No waiting for loans to be approved
• Included unwanted items in the transaction will mean less packing
• Process is not as stressful as a conventional method
• Contacting property investors or house flippers may result in a quick sale with cash offers

Disadvantages
• “As is” properties equals problem real estate
• Limited prospects as most buyers prefer to negotiate repairs
• Asking price may be lowered based on current condition of house
• Potential scams due to unlicensed investors
• Must make sure cash offer is legitimate

There may be legal obligations depending on state rules The home owner must honestly disclose all issues with the property. Paperwork and other processes may be required to complete the transaction.

3. Is it better to make gradual repairs then sell later?

This home owner is unsure and may be doubtful of how the house will sell on the market. A plan can be created to make repairs. A timeline will record completion for renovations. The time to sell may need further thought.

In this case, it’s may be best to save money, make repairs as needed, plan for renovations while remaining in the home. Understand the housing market is not an absolute opportunity. It is an uncertain entity that can change at any time.

Today the market can be productive and tomorrow return to the events of 2008.

 

By | 2017-08-15T17:29:39-04:00 August 15th, 2017|Uncategorized|Comments Off on Fix My House or Sell? 3 Questions To Help You Decide