There has never been a better time to sell your home. If your property is in need of big repairs, you might be wondering, how much will my distressed home sell for? And should I make those repairs before listing?
The short answer is no.
You do not need to make repairs. But you also should not expect your home to sell for the same amount as comparable properties in your area. Plus you’ll have the hassle of negotiating with buyers. Listing your property “as-is” doesn’t stop buyers from attempting to negotiate. You will also still be responsible for closing costs and your real estate agent’s commission fee.
The long answer depends on your timeline and priorities.
If you choose to make repairs, you may need to invest a significant amount of time and money before your property is ready to sell. This may be an option if you are not in a hurry to sell your property and are able to invest in repairs.
How quickly do you need to sell your home?
If you are in a hurry to move a property, your best option is working with a cash buyer. Companies like GTG Buys Homes can close the deal on your property in just seven days. If you go the traditional route and list your property on the MLS, there will be a number of hurdles you must cross before you can sell.
Most buyers will be working with a lender for their home loan. This means that they will require an inspection of the property before closing. If your home does not pass inspection, the buyer’s lender may not approve their loan for your property. Despite how the buyers feel about the property, their lender may require repairs before they can move forward with closing. They might also decide to move on to the next property.
Kinds of Repairs
1. Do It Yourself vs. Professional Repair
One way to save costs is to do the repairs yourself. If this is your decision, you must be able to finish any jobs you take on. Buyers will prioritize quality workmanship over obvious DIY efforts. Remember that it can actually cost less to pay a professional to do it right the first time.
If you’re not cut out for the job, don’t think you can hide poor quality work from buyers. They are looking for any reason to lower their asking price and get the best deal they can for your property.
2. Functional Repairs and Cosmetic Repairs
The repairs that will determine the value of your home the most are functional repairs. These are things that affect the property’s structural integrity or safety. For example, a leaky roof or cracked foundation is a functional defect. Unfortunately, these repairs often also cost the most to fix.
Another concern is cosmetic repairs. Peeling paint or drywall in need of patching does not largely affect your home’s value. However, these things make an impression on buyers and can reflect in offer prices if your home is not cosmetically appealing.
3. Curb Appeal
In the same category of cosmetic repairs are curb appeal renovations. First impressions are important, and if buyers are no longer interested in the home when they arrive, it will be an uphill battle to convince them of your property’s value. Maintaining the outside of your home is important to make a good impression on buyers.
So how much will my distressed home sell for?
It’s possible to net the greatest income for your home by making repairs. If you are short on cash or are pressed for time, it probably isn’t the option that makes the most sense.
If you’ve decided that you don’t have the time or money to make repairs, your next move is to look for a cash buyer. Ideally, you will work with a company that makes a transparent and fair offer. If you are looking for more information regarding how much your distressed home sells, contact a service like GTG Buys Homes.
Repairs may increase the value of your home, but they also cost time and money to complete. Working with a cash buyer is an option if you need to move your property quickly.