You’ve finally decided to sell your house. However, it’s not in its best condition. Paints are chipped, woodwork is terrible, or the water supply is messed up. You are now stuck between repairing your home or selling it as it is.
Keeping fixed and well-maintained home drives in more interested buyers. Buyers tend to look for homes that need minimal repair. However, others go far from perfect homes as they are cheaper than repaired ones.
Selling the house “As Is”
Selling the house “as is” means selling it in its current condition. This means that there will be no repairs, improvements, and fixing done on the home. People often sell the house “as is” because they cannot afford to make repairs anymore. The bank forecloses some, or the previous owner died that repairs can no longer be made. Other owners also want to get over the house and move on.
These houses are often far cheaper than those with repairs, especially buying a house in California because buying a house “as is” in there is prevalent. Buyers do not need to worry because a house sold “as is” does not change the buyer’s rights. The seller must still disclose any problems in the house. There can always be a negotiation to lessen the selling price.
Since the price is lower than other houses, there will be many interested buyers. This should be okay for you since you no longer need to shell out money to make repairs. Also, buyers like it when they can make their repairs and hire people they trust to repair.
The downside of selling the house “as is” is that buyers want homes in good condition. They will negotiate to have the house fixed before buying or negotiate for a much lower price than what you intended to sell the house for.
Only Fix Important Things
If you cannot help it, then only fix important things in your house. You know that there are things that need to be fixed but only have a minimal budget. Keep in mind that repairing these features can benefit the sale of your house. Many major repairs have a low return on investment.
First, the bathroom. A clean and working bathroom is an important point of the house. Make necessary repairs on a leaky faucet or runny toilet. You can also clean the grout or clean the bathroom’s entirety to make it more pleasing to the eye. Remove dingy wallpaper or repaint the bathroom. The cleaner and brighter the bathroom looks, the better.
Second, the kitchen. Kitchen repair is a big investment. However, you can make as minor repairs as possible. These include replacing the lighting, cleaning the countertops, and installing new fixtures. Also, fix the hinges and handles of the cabinets.
Third, the whole home interior. Make repaints if necessary to brighten up space. You can also repair the nail holes and minor scratches on the ceilings and walls. You can also have your hardwood floors refinished or tiled floors cleaned and bleached.
Fourth, check the electric line of the house. Electric panels and circuit breakers should not be burnt and work well. Hire an electrician to do the repairs needed. A damaged electricity system might hinder the sale of your house.
However, do not repair it if you cannot pay for it
It might be tempting to make as many repairs as possible, especially if you are desperate to have the house sold as soon as possible. However, do not stretch yourself too much if you cannot afford to pay for the repairs.
It’s not smart to take out a loan just to pay for the house’s repair that you’re planning to sell anyway. The interest and additional monthly expense on your part might not be worth it for the selling price.
How to sell “as is”
If you decide to sell the house “as is,” the next step is to know how to sell it. First, clean the house. Even if the house is not repaired and not in its best shape, a clean house can still attract buyers.
Second, look for an agent that dealt with “as is” house sales. They will be in the best position to judge whether selling “as is” is best for you or not. It is best that the minor repair you can do without shelling out a lot of money. They will also find buyers that are willing to buy an unrepaired house.
Third, always disclose to the buyer the problems of the house. Selling the house “as is” is not an excuse to not disclose any roof leaking or chipped paint. Failure to disclose can open you to liability at the close of the escrow.
Selling a house is not easy. You might wonder whether to repair the house first before selling or to sell it “as is.” Always remember the pros and cons of selling the house “as is” or repair only the important things. However, do not repair it if you cannot afford such a repair. Don’t forget to get an experienced agent and disclose any problem to the buyer.