So, you’ve decided to sell your home but you’re not quite sure if you should make repairs or try to sell it in its current condition. What to do? Let’s further examine the situation before you make your decision.
What is the current market like?
Sellers are often advised to make repairs and upgrades to their home before listing it on the market. What they forget to do, however, is to check if the current market conditions call for it. As a result, it’s not uncommon for sellers to spend money on fixes that won’t yield significant returns (if any) on their investments.
My advice is to assess the real estate market as it is right now before you decide to fix or sell your home as is. Is the market booming or slowing down? Does it favor buyers or sellers, or is it in a neutral state?
In a seller’s market, where demand far exceeds the supply, you can get away with selling a property that requires repairs, no matter how intensive or minor these are. But in a buyer’s market, with supply abundant and the demand not up to par, your fixer-upper might not earn even a single glance.
Consult your real estate agent to understand the market better before you make your move.
What is the state of your house?
Next thing you should take a look at is the condition of your house. Does it really need repairing? Is it really one of the most important things to do before selling a house?
One way to find out is to invite a home inspector to come and take a look at your property, even if it is fairly new. They’ll be able to identify both issues you can leave alone and things you need to address as soon as possible. This way, you won’t be overspending on fixes that are hardly necessary.
It’s an entirely different issue, however, if you are selling an older property. Most likely, you will have to make repairs and upgrades. On the upside, doing so can boost your property’s market value. On the downside, you might have to shell out more money than expected.
The home inspector should be able to make the call if your property needs fixing or otherwise. Ask your real estate agent for referrals.
Fixer-uppers vs. fixed-up homes
Another thing you need to determine is whether there is a demand for fixer-uppers should you decide not to make repairs.
Most home buyers want move-in ready homes, but usually, there is a market for fixer-uppers. There are two types of this buyer, however. There are those home buyers who say they’re open to fixer-uppers and expect only light cosmetic repairs, and then there are those who like to buy to “fix it up” and sell the property to make a profit. We call them “flippers.”
Regardless of the kind of “fixer” buyer your property attracts, you will have to put a low-price tag on it. This is especially the case if your house warrants intensive repairs, but you have decided to sell as is.
Other things to consider
- Your desired outcome
If making a profit is ultimately your goal, making repairs and adding an upgrade or two could prove to be beneficial. If you are selling to be rid of the property without much of a regard to the income you might make, selling the house in its current condition shouldn’t be much of an issue.
- Selling a fixer upper might take some time
As I mentioned earlier, most home buyers are after move-in ready homes. They’re convenient to move into and require hardly any work. Don’t expect to sell your fixer-upper fast, even if you’re selling it at a discounted price.
- Do you research before making upgrades
If you have decided to repair and improve your home, tour the neighborhood and find out what other properties in the area have that yours lack. For instance, if these homes have upgraded kitchens, might as well improve yours. If hardwood floors are a common feature among homes in the neighborhood, perhaps it’s time to invest in them as well. Doing so will help your property stand out amongst the local competition.
When all else fails, ask your real estate agent
Sit down for a proper consultation with a Las Vegas realtor to weigh out the pros and cons of making repairs and selling the property as it is. Contact me today at 702.419.3213 or send an email to loralee(dotted)wood(at)cbvegas(dotted)com to examine your options carefully.