Is It Better to Sell My CT Waterfront Home As Is or Fix It Up?
There are many reasons why, as a homeowner, you may choose to sell your home. It could be that you wish to move. Or maybe you have fallen upon hard times. Knowing whether to sell your house “as-is” or to make repairs depends on many factors.
Your most important consideration should be why you have listed your home for sale. If you want to sell fast, the house should be sold as-is. You won't make as much profit, but the price is likely to be more inviting to buyers. If your goal is maximum profit, make all repairs before selling. It may take a bit longer to find a buyer, but the profit is guaranteed. This is a basic way to look at it, but many other things will influence your decision.
What Factors Influence Selling As-Is or Fixing Up?
Selling ‘as-is’ simply refers to selling a home without making any repairs or upgrades. The idea here is that the buyer will make any required fixes. This tends to result in a lower asking price.
The conditions of a home can differ significantly. For instance, let’s consider an example of two homes to be sold as-is. One might simply have an outdated kitchen or a single leak in the roof. The other may have mold in several places, holes in the walls, and worse. These houses both need repairs, but the money needed for one home will be much higher than the other. This is just an example of one of the factors that can influence the decision to sell as-is.
The following are some of the factors to consider if choosing an “as- is” sale.
The extent of the repairs. The extent of the repairs in your home is an important factor. It will influence your possible buyers, selling price, and timeline of sales. A house with more extensive repairs will be costly to fix up. In cases like this, it might make sense to sell as-is. Note that most offers will come from flippers, due to the money required to fix the home. Very few buyers who intend to actually live in the house will buy such a home unless the offer is very low. If you plan to sell a home with a few repairs, you might as well fix what you can. Don’t give your buyers a reason to beat down the price because of minor issues.
How quickly you want to sell. Your location can determine how fast houses sell. Some areas are slow markets, and a well-priced home may take months to sell. If you intend to do extensive repairs on your home, this will stretch the time before sale further. If time is a pressing concern, then you may have to take the hit on profits and sell as-is. If there’s no rush, it is worth taking your time to repair and sell at a maximal profit.
Your expected profit margins. There’s no easier way to put this. If your goal is to maximize your profits when selling your home, you have to fix it up. You will find that your returns will be much greater than your expenditure. A home sold as-is will not only have low offers because of the cost of repairs, but the inconvenience as well. If a repair is expected to cost $10,000, a buyer may drop the price by $15,000 or more instead.
Current financial status. This is one of the absolute factors that determine whether a house should be fixed up. Simply put, if the funds required to fix major things aren’t available, it can’t be done. It is possible to take a loan to finance repairs. However, the certainty of sale after repair should be ensured.
Things to Note When Selling As-Is
There’s less that you’ll need to do when selling your home without any repairs. However, you still need to take note of some things.
Your buyers for a home sold as-is will depend on the extent of the repairs required. In a home that has minimal repairs needed, you will likely see every kind of buyer.
When the damage is more extensive, it’ll typically be investors that show up. Flippers are always on the lookout for a home with a low asking price. They will buy it, use their money to make the repairs, and sell it at a much higher price. Of course, in an ideal situation the homeowner would do exactly this, but the factors we discussed above may prevent this.
Some prospective homeowners may show up though. These are likely people looking for their dream home. Considering the extent of repairs required, they can repair the house to their taste. It is cheaper than building a home from scratch.
It is important to state all known issues with the home when listing. If the buyer brings an inspector, any surprise issues may make them lose confidence. After all, they may assume that there are more repairs that you are keeping from them. Price with all the necessary repairs in mind.
Things to Keep in Mind When Fixing Up
If you have the funds, it’s not a bad idea to make all the necessary repairs. You’ll be at peace knowing your sale will have no compromises. However, you may only want to make selective repairs. If capital is low and this is the case, some fixes can add more value than others. These include the following:
Fixing any major damage to the structure. These will cost a lot, but it’s best to start here than with smaller things. A broken roof or a complete hole in the wall will have more impact on price.
Repairing minor damage to walls, ceiling, and floors.
Repairing or replacing a faulty HVAC system.
A fresh layer of paint. A color like gray is preferable as it is neutral and can be painted over without stress.
Fixing light switches and other electrical items.
Make any repairs needed on the plumbing.
However, with a real estate agent by your side, this process will be made easier. Your capital can be assessed to determine which repairs should be made.
Also, fixing up can include making upgrades to the home. If high-end kitchens are common in your market, it will be a smart decision to follow suit. A real estate agent knowledgeable in the area can help you choose the best upgrades to make.
Deciding to sell your house as is or to fix it up can be difficult. With a qualified real estate agent by your side, this can be easier. Deborah Laemmerhirt, REALTOR®, can make all the difference for you.
If you want to sell your home around Candlewood Lake, CT, such as New Milford or Danbury, you can make the right choice of agent. Call up Deborah Laemmerhirt, REALTOR®, at 203-994-4297, to get started.
In case you cannot view this video here, please click the link below to view Is It Better to Sell My CT Waterfront Home As Is or Fix It Up on my YouTube channel: https://www.youtube.com/watch?v=uTt4_vgph1s