If you are planning to sell a home, we bet you have already heard a thousand times that your home should look at its absolute best before you list it for sale and you need to spend thousands of dollars on repairs and renovations. You should stage your home to make it more desirable to prospective buyers and hold open houses. It will help you sell your property faster and for the highest price, you are told.
Have you ever wondered how true these claims are? Even if you manage to sell your home for a higher price, will you be able to recoup the money spent on unplanned repairs? What about the time you wasted undertaking renovations and upgrades?
Repairs don’t always make sense
Let’s say for example you spent a couple of months and $20,000 on making repairs and staging the property. And bingo! Your home gets sold within a week. Everybody congratulates you for your wise decision to invest money and time in repairs. But ask yourself – did you recoup $20,000? The old wisdom says that it is the land that appreciates in value, not the structure sitting on it. So the possibility is that you will be able to sell it at the market value even after spending thousands of dollars on repairs. To top it all off, it actually took you two months and a week to sell.
Now in a different scenario, let’s assume you sold the property without making repairs nearly $20,000 below its market value. It took you nearly a month to sell it. How much time did you save? It’s nearly one month and three weeks! And you didn’t have to bear the stress of hiring contractors and skilled workers and ensuring that they completed the job on time and within your budget. You also didn’t have to stage your home and hire photographs, home inspectors, interior designers etc.
We are not saying that you should never make any repairs, but you need to determine which repair will add value and which repairs and upgrades are nothing, but a money pit.
Why to sell your home as-is
Selling your home as-is makes sense, particularly if your home is not in good condition. If you try to renovate a property with major defects, you need to have experience with construction work and access to a trusted team of contractors, skilled workers and material suppliers. You need to prepare a Scope of Work with all the microscopic details of the projects. It is very difficult for homeowners inexperienced in construction work to follow these obligations. The chances are you would end up spending more money and time than you had expected.
Most buyers who will buy your home ‘as-is’ are going to be real estate investors. Since their offer won’t be contingent on a successful home inspection, they will be able to close the deal quickly. There won’t be any last-minute surprises about buyers demanding repairs after a final-walk through. These disputes can even cause the deal to fall apart at the last moment.
Now that you know why it can be a wise decision to sell your home ‘as-is’, you should evaluate your individual circumstances and determine whether this strategy is a right choice for you.
E2F Properties is Westchester County’s premier real estate redevelopment company. We would love to help you sell your home anywhere within Westchester. If you have a home that you need to sell or if you know of a property in your neighborhood that you think needs renovation, please call us to discuss your options! We are a solutions company and are available to help! (914) 999-2293