Are you wondering whether to sell your home as-it-is or put some money in repairs? Your decision depends on many factors, including the extent of the repairs and the state of the housing market.
Read on and learn about the factors that should sway your decision. This blog will also discuss whether minor repairs are likely to improve the odds of landing a great deal in no time.
Factors to Consider
Deciding whether to fix up your home or try to sell it as-is is not easy. No one would don't want to put too much money into repairs before listing, but on the other hand, flaws in your home could cost you a great deal. As you ponder about whether to repair or not, consider these factors:
The State of the Housing Market
Right now, and over the last couple of months, the real estate market in Nashville has been a seller’s market. According to a report on tennessean.com, the boom in the housing market is not in a bubble. Rather, it is a correction phase, and pundits anticipate that it will stay that way for a while. Homes that averaged $70,000 to 75,000 in 2011, now go for as high as $235,000.
These are favorable conditions for anyone who is looking to sell. The chances of garnering multiple offers are high. However, you may not get a fair deal compared to other sellers in your location. To learn more about the real estate market in your locality and the worth of your home, reach out to an agent for a comprehensive market survey and a home evaluation report.
Who is Your Likely Buyer
In a seller's market, it is not only families who are interested in your home. Contractors and experienced flippers are often on the lookout for homes they can cash in. They want to buy low, do some repairs, and sell high. Since you are not an expert in housing repairs or real estate, making moves without the guidance of a real estate agent could be catastrophic.
Get in touch with a trusted real estate agent to guide you through the decision.
The Buyer’s Considerations
Put yourself in the shoes of the buyer. The pandemic has caused home buyers to avoid site visits. They rely more on reports by professionals.
A serious buyer will, without a doubt, first ask for an independent inspection report.
Some buyers would enjoy DIY fixing. But most are often only interested in minor or cosmetic repairs. Few are willing to buy a home and get down into extensive fixing (like fixing the roof, faucets, and the foundation). Most home buyers want a place that is ready to move in and settle.
If your home requires extensive repairs, it would most likely attract contractors and experienced flippers.
Next, a serious buyer will rely on their agent’s report. Before the buyer makes a move, they will want to know whether the price is competitive and worth investing in repairs. Look around your neighborhood. How much are homes selling? What is the market outlook?
Lastly, the buyer will rely on the photographer’s report. The buyer will depend on the photographer and other professionals for what he or she cannot see. So, it is not just the price that matters. There are many reasons why a home could fail to attract attention from buyers.
Will Investing In Repairs Give a Return?
Home repairs can cost a pretty penny. When you have considered the market factors and evaluated the sale from a buyer’s perspective, consider if investing in fixes is worth it.
Two aspects come into play: how much will it cost you to repair, and what price are you likely to fetch?
Major repairs such as fixing foundation or roof issues could be costly because you have to engage professionals like engineers. Minor repairs and upgrades, on the other hand, can boost the value tremendously.
If your home requires extensive repairs, Calgary Homes points out that settling for a contractor buyer could be an option. They comment, “But before you do that, get an inspector to investigate the extent of damage and a contractor to estimate how much it would cost to fix it. This way, you can negotiate from a more informed position.”
With this in mind, here is a look at some fixes you can do and boost your home’s value.
Minor Fixes and Upgrades to Boost Your Homes Value
- Repair any electrical flaws. Ensure there are no missing wire nuts, damaged junction boxes, faulty light switches, frayed wiring. It will cost you about $45 - $65 per hour to hire an electrical technician plus materials.
- Fix the grading and drainage. Ensure there are no clogged rain gutters, faulty downspouts, water stains, or signs of water damage.
- Deal with minor roof problems like clogged storm gutters, replace damaged weather strippings and shingles.
- Fix the regular upkeep issues such as peeling paint, worn-out carpets, and damaged tiles. So consider a fresh coat of paint and replace the carpeting. Also, replace broken tiles or loose handrails.
- Upgrade the kitchen and bathroom. These are major selling points for any home. But you do not have to invest in expensive designer ware and fixtures. Just give it a fresh and modern look.
As you consider selling your home as-is, reach out to a trusted real estate agent and learn about the market. Also, get in touch with an inspector and contractor. They will advise you about the damage, the repairs, and how much it would cost to fix it. Consider both major and minor repairs and what you can do to get the maximum return on your home.
The Ashton Real Estate Group of RE/MAX Advantage
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