Sell As Is Or Make Repairs: Here Are 5 Tips To Help Make The Best Decision

Selling a property without experience can be challenging because you’re unsure of what to do. You’ll read or hear some recommendations, like selling your home as is to save time, money, and energy for a quicker sale. Real estate agents suggest making some repairs before selling to increase your home’s value or prevent its current price from falling.

So, is it better for you to sell your home as is, or would you rather make repairs?  Read this article until the end before making a final decision.

 

     1.     Weigh The Costs

It’s crucial to weigh the costs of repairs against the property’s fair market value when deciding to sell your home as is or make repairs. The fair market value refers to the amount a buyer is willing to pay for a similar property in your local area. 

Minor repairs help preserve the current value of your property. On the other hand, upgrades can make your home more appealing than other houses for sale in your area. They increase the likelihood of selling your property faster than others, at a possibly higher price. If your house needs major repairs because of too many broken fixtures, cracks, holes, and leaks, then it makes sense to sell your property as is to a real estate investment firm, such as Ocean City Development. 

Check the following cost considerations when repairing a property for sale:

     ·     Inspection Cost: This expense goes to paying contractors to assess your HVAC, electric, plumbing, roofing, or electrical system. 

     ·     Material Cost: It determines the budget you need to allocate for the materials, such as replacement tiles and shingles for cracks, holes, and damages.

     ·     Labor Cost: You’ll need to hire workers to finish the tasks. Salary schemes differ from hourly basis to per day or per project.

     ·     Permits: In some cases, you’ll need to obtain permits for major renovations in compliance with building codes and local ordinances. Generally, any major changes altering the footprint of the property requires a permit. Some good examples include additions, high fencing, certain fences, decks, electrical work, plumbing, and siding projects.

 

     2.     Know Your Ultimate Goal

What is your primary objective in selling your home?  Do you want to obtain quick cash to fund a business by selling your inherited property?  Or, do you need an immediate down payment for a new home you’ve been dreaming of? 

If you’re in a rush to cash out your home, selling it to a real estate investment firm is a practical decision. Making major home improvements, such as roofing repairs, would only delay sales and cost you more money. But, if you have some other sources of funding, listing your home on your own or hiring a real estate agent is a sensible thing to do to obtain the maximum payment for your property.

 

     3.     Consider The Sales Process

The property sales process is a lot more complicated and lengthier than retail sales. Mortgage arrangements, inspections, negotiations, and tackling legal matters can take months. You’ll also need to work with a real estate lawyer to ensure all legal aspects of the sale are addressed.

Because not everybody has the same free time, you’ll need to make and answer phone calls and emails to ensure everyone (agents, contractors, inspectors, lawyers, and potential buyers) is on the same page. If you’re willing to take this route, better prepare yourself for the challenge. 

However, if you’re busy and just want to proceed with the sale, it’s best to sell your home to a cash buyer. Check the following advantages of selling your home as is:

     ·     No maintenance and repair needed 

     ·     Eliminate the need to hire real estate agents 

     ·     No expensive home improvements and inspections required 

     ·     No need to hire contractors 

     ·     Obtain quick cash for your property

     ·     Stress and hassle-free

 

     4.     Talk To Real Estate Experts  

It’s a smart move to talk to the experts to determine your options. Give yourself a chance to interview a real estate agent and a real estate investor who’s willing to pay quick cash for your home. Whether it's a phone, face-to-face, or email correspondence, comparing apples to apples is at your greatest advantage. 

Here are some sample questions when interviewing real estate experts:

     ·     How soon is the soonest closing sale?  Whether you choose to work with a real estate agent or sell your house without repairs, closing a deal within two weeks is possible, given the right price.

     ·     What are the requirements?  Completing requirements prolong the sale for legal and tax purposes. Some of the requirements include original sales contract, mortgage statement or payoff amount, professional appraisal form, homeowners insurance records, receipts for capital improvements, homeowners association records, and home repair and maintenance records. 

 

     5.     Consider Your Finances

It’s important to consider your finances when selling your property. Some people want to sell their inherited properties fast to pay off debts, avoid bankruptcy, or save their business. So, why spend money on home improvements if you have money problems already? 

Keep in mind that there’s no guarantee that your property’s value will increase if you spend money on expensive repairs. As mentioned, repairs aim to keep your home’s current market value. For this reason, selling your home to a cash buyer is the best option to get quick cash to help with your finances.

 

Conclusion 

Make the best final decision on how to proceed with selling your property by following the tips shared in this article. Whether you’re planning to sell your home as is or make repairs, consider weighing the costs and knowing your ultimate goal. The sales process of traditional home selling is lengthy and costly because of the paperwork, documentation, permits, deadlines, and procedures. 

If you have money to spend for repairs, you can take this route to preserve your home's current fair market value. While selling your home after making repairs can increase the likelihood of getting a higher price, selling your house to a cash buyer can save you so much time, energy, and money. The latter is highly recommended for those who are in a rush to sell their properties.