If you’re thinking about selling your home, and its fallen into a state of disrepair you have two options. Either sell it in its current condition or undertake some repairs and renovations in the hope that you’ll get a favorable offer. To help make the choice easier we’ve gone over the pros and cons briefly,
Pros and Cons of Renovating The Home Before You Sell
- Get Interest From A Larger Number of Buyers
If you’ve spent tome doing needed renovations you’ll find that once you’ve put your home on the market a lot more buyers will be interested. This is in contrast to selling as a fixer upper where only a few will be interested.
- Sell Quicker
Since you’re reaching more buyers chances are you’ll get more offers and you’ll sell quicker.
- Spend Money Without A Guaranteed ROI (Return on Investment)
The biggest risk you’re taking if you decide to renovate or repair the home before placing it on the market is that you don’t know if you’ll get any of the money back. If you haven’t been up keeping the property and have allowed it to fall into disrepair then trying to spruce it up at the last moment you’ll likely spend more than you bargained to.
If you’re thinking of taking this route you don’t have to do a complete renovation, just focus on repairing the home. In the very least focus on what you can afford. That way when an inspector takes a look at the property there’ll be less noticeable issues.
Pros and Cons Of Selling Your Home As Is
- Less Investment Upfront
If you’re strapped for cash choosing to sell your home in its current condition is certainly the best option. You don’t have to worry about whether you’ll be getting a return.
- Put It on The Market Quickly
Another pro is that you won’t have to wait to complete renovations or repairs to place your home on the market.
- Take Longer To Close
Depending on what crops up during an inspection you might find closing exceptionally difficult. Some lenders may not loan under certain conditions, or buyers may drag their feet and delay the process in a bid to get you to agree to a lower price.
- Less Interest From Buyers
Fewer buyers will be interested in the property as a fixer upper isn’t to everyone’s liking. You’ve also got to consider how your home will look in pictures, as that is usually what attracts buyers to your home in the first place.
- Get Less Than Asking Price
The likelihood of your home selling for asking price is slim. Usually buyers will deduct from the state that your home is in that you’re selling as a result of financial need. They may not be wrong. In addition there are probably faults that came up when your home was inspected, giving you less room for negotiation and the buyer plenty of room.
To mitigate the cons of selling your home “as is” keep it clean, clutter free and ready for buyers to view.
Bottom line, whether you decide to repair or renovate before selling or you sell it as a fixer upper there are significant pros and cons. To decide what to do in your particular circumstance discuss your options with a reputable real estate agent.