You have finally made the decision to sell your home. The next question is, how do you want to prepare your home to get it on the market?
Selling in As-Is Condition
Repairs may or may not be necessary depending on the scope of the work and the type of buyer you are looking to attract. The pool of buyers able to take on a project can be limited by the type of financing the buyer is able to obtain. For instance, homes built before 1978 that have peeling paint are not eligible for the cleanest form of FHA financing. Fix the issue, problem solved, and your buyer pool opens up again. Major foundation repairs are not only costly, they can also stigmatize the property, which translates into more days on the market. With "As-Is" marketing, you simply don’t want to deal with repair issues however, neither do most buyers. I say “most buyers” to illustrate the fact that there are investor buyers who like to buy for pennies on the dollar, fix up the house and use it for a rental or flip it for a profit. If maximizing the equity in your home is your goal, this may not be the best option for you to consider. On the other hand, if selling quickly without investing money for repairs is more important to you, then this could be an option.
Selling with Major Repairs Completed & Home Clean
This is the choice most sellers make as it gives them the largest return on their investment. Here you are addressing the items that would limit a buyer’s loan options based on lender guidelines. This would include items such as peeling paint, safety concerns or electrical issues. From my experience, when a repair is needed, buyers inherently inflate the actual cost in their negotiations. I have found it best to address the repair up front before it becomes an issue.
Selling HGTV Ready
This is just as it sounds. These owners are adding granite, hardwood floors, smart home features, luxury vinyl tile, updating light fixtures and appliances. The risk here is that after making such a major investment, a buyer might prefer to make choices based on their individual tastes.
A Real Estate Professional can show you where your money is best spent in order to maximize your return. Each of these options have their place in the real estate transaction depending on the motivation, financial ability, and timing logistics of the parties.