Should You Fix Your Home Or Sell As Is?
Mar 22, 2023
Selling your home can be one of the most significant decisions you may have to make. There are several things that you need to consider. One is whether you should sell your home as is or fix it before putting it on the real estate market. In most cases, there's no specific answer to that question because your decision may depend on many factors, such as your budget, timeline, and financial situation.
So, if you're trying to decide whether to invest in repairs or sell your home as-is, keep reading this article to help you choose the best route to sell your property.
When To Sell Your Home As Is
Generally, selling as-is refers to a process wherein your home is in its current condition without making any repairs or upgrades. Under this arrangement, the buyer understands that you won't make any repairs as part of their offer, even if the home inspector finds some major issues.
Moreover, there are also many circumstances wherein you may want to sell your home as it is. These include:
- You need more budget to complete significant repairs or upgrades.
- Your home's structure and major systems are still working perfectly.
- You have to sell your home as soon as because of some reasons, such you're transferring out of state or just wanting to speed up the sales process to purchase a new home.
- You want a cash offer.
- You're willing to sell your home at a lower price.
These are some instances when selling your home, as it will make a lot of sense. Thus, if you deal with the abovementioned situations, start looking for genuine cash buyers to facilitate the sales process as quickly as possible. Many reliable house buying companies can purchase any house in any condition using their funds and can complete the transaction within days.
When To Repair Your Home Before Selling It
You should fix your home before selling it for many reasons. For instance, it can help boost the sales price to balance the necessary repair costs. But when should you consider making the repairs before selling?
Below are some instances wherein you may want to fix your home first before selling it:
- Your home has significant repair issues, making it unattractive to potential buyers.
- You want to get the most out of the purchase price.
- You plan to sell your home in a buyer's market, which means there are more homes for sale than homebuyers. Because of this, move-in-ready homes are more appealing to prospective buyers, increasing your chances of selling your property as quickly as possible.
- You have enough budget and time to complete the necessary repairs before undergoing the sales process.
If you encounter these scenarios, fixing your home may be the best option.
Pros And Cons Of Selling Your Home As Is
Now that you know when you should sell your home in its current condition, it's time to familiarize yourself with the pros and cons of selling as is. These include:
- More Straightforward Process: Selling your home as-is is simpler because you can skip the lengthy mortgage approval and closing processes. Since most buyers of as-is homes buy in cash, the sale can be completed in a few days.
- Fewer Contingencies: Most traditional home sale transactions have several contingencies, meaning the buyer must fulfill the requirements before the sale becomes final. But when you sell your property as is, you can reduce the contingencies you must comply with to proceed with the sale.
These are the advantages you can get if you sell your home in its current state.
- Low Price: You can't get the most out of your home's market value if you dispose of it in its current condition. That's because you need to lower the price to compensate for the repairs you should do to make it more livable.
- Less Available Buyers: Selling as-is means asking for a cash offer for your property. However, not all homebuyers are willing to buy your property in cash. As such, you'll have to deal with a reduced buyer pool, making the sales process time-consuming if you can't find a buyer soon.
These are some disadvantages you may experience if you choose to sell your property as is.
Pros And Cons Of Fixing Your Home Before Selling
Like selling as is, fixing your home before selling also has pros and cons that you should consider to help you make a good decision. These include:
- Eliminate Buyer Objections: When a potential buyer examines your home, they'll probably look at some reasons why they shouldn't buy it. Hence, if you fix your home before the sale begins, you can remove buyer objections and streamline the process from the start.
- Competitive Edge: Repairing your home before selling can make it a competitor in the real estate market. It means you can compete with similar homes available for buyers and, in turn, improve your chances of attracting a potential homebuyer as soon as possible.
These are some of the best things about fixing your home before selling it.
- Costly: Depending on the extent and severity of the damage, the repairs or upgrades may require a considerable amount of money upfront, which is not readily available, especially if you're on a budget.
- Time-Consuming: If you want to complete the sale quickly, fixing your home before selling may not be a good choice. The renovation can take time, depending on the repairs or renovations you should do to make your house presentable in the eyes of potential homebuyers.
You should consider these disadvantages when deciding if fixing your home before selling suits your situation.
Only you can decide whether it's in your best interest to sell your home as is or fix it before selling. However, to ensure you make the right decision, remember the information mentioned above. This way, you can pick the best method to sell your home.