Repair Your House or Sell As Is? The Pros and Cons
There are two options when selling your home. You can either repair your house before listing it or sell it as is. When you sell it as is, it basically means that you only make major repairs or updates to the property when you get a potential buyer.
In other words, the buyer is responsible for any improvements. Some prospective cash home buyers like this opportunity because it gives them a chance to incorporate their ideas into the renovation process.
However, many people prefer buying a property that no longer requires any additional repairs. As such, you’re likely to attract more clients than someone who listed their property in as-is condition.
Of course, both options have their pros and cons. So, if this interests you, we invite you to continue reading to learn whether to sell as-is or to repair your house.
The Pros and Cons • Repair Your House or Sell As-Is
Pros of Selling Your House ‘As-Is’
There are several reasons that might force you to sell your home without making any repairs. For one, you might face financial or time constraints. That means you can’t afford the expenses that come with home upgrades or don’t have the time to carry them out.
Are you wondering if there are any benefits that you’ll enjoy by choosing this route? If so, the list below shows the pros of selling your house as-is.
• You Avoid the Pre-Sale Costs
Most resales require a lot of interior and exterior upgrades before the home can be listed in the market. The fact that you need to replace some parts during the renovation process may significantly stretch your wallet. However, if you choose to sell a house for cash ‘as is,’ then you avoid all the expenses that you would incur if you repair your home. In fact, all you’ll be required to do is move your items out and prepare the necessary documents.
• Immediate Listing in the Market
Another advantage of selling ‘as is’ is that your property will be listed on the housing market almost immediately. Usually, you’re required to follow several steps before your property can be shown to potential buyers.
Most of these procedures involve repairs done during the renovation process. In fact, you can navigate most of the initial steps if you sell ‘as is.’ If you have limited time to repair your house, then this could be your best option.
• Weeds Out Jokers
Once you list your property, you can be sure that you’ll come across all sorts of buyers. In fact, some of them don’t have the intention of buying the house—they’re just there to enjoy the scene then move to the next property.
However, when the house is sold ‘as is,’ then most people who come knocking are genuinely interested in your house. This, however, shouldn’t be the sole reason why you decide not to make repairs. It’s also worth noting that there’s no guarantee that you won’t still come across one or two buyers who aren’t serious.
The Cons of ‘As Is’ Sales
Of course, there is no right or wrong way to list your property because it’s all dependent on the current situation. However, you also need to carefully analyze both options because the cons can easily outweigh the advantages, depending on your particular situation. Here are a few drawbacks to expect when you decide not to make any repairs:
• Difficult to Attract Potential Buyers
There is no denying the fact that most buyers love manicured front yards and rooms designed to look luxurious. Of course, no one wants to live in a worn-out home. So, most people try to avoid the expense of renovations after acquiring the house.
Unfortunately, if you sell without repairs, it gets difficult to even convince someone to have a look at it.
• Buyers Will Low-Ball
The fact that your property does look quite old gives the buyer a chance to lower their offer. In fact, most of them, especially experienced ones, are likely to start at a very low price.
Therefore, it’s up to you to convince them that the property should cost more than what they’re offering. This can be very difficult and hinders your ability to close a deal.
• You Might Build a Bad Perception
The moment your house is tagged ‘as is,’ the buyers are likely to create a negative image in their minds. Some will assume that there is something seriously wrong with the house which forced you to sell it quickly. They may also think the repairs for the home to be ready are too expensive.
Of course, all these claims could be wrong, but it’ll be very hard to convince someone otherwise. There’s also the idea of buyer or realtor distrust, which can contribute heavily to this difficulty.
Unfortunately, sometimes people selling their homes ‘as is’ don’t share all the information about the house because they’re afraid the value might go down. In these instances, trying to build that trust with a potential buyer is a rough experience.
• Low Selling Price
Regardless of the negotiation, it’s almost guaranteed that you sell your property at a very low price. So, if you plan to list your house without repairs, you sacrifice a significant percentage of the value. As such, it’s recommended that you choose this option only when you’re under pressure both financially and time-wise.
Some homeowners find themselves at crossroads when it comes to selling the home ‘as is’ or with repairs. That makes it important to weigh the benefits and drawbacks of both options before deciding on the best course.
Selling ‘as is,’ for instance, allows you to list the property almost immediately. However, you get to enjoy this benefit at the cost of your home’s valuation. Of course, that is a deal-breaker for some, so be sure to plan accordingly, regardless of what your circumstances are.
If you have any questions or suggestions, please leave your comments below. We also invite you to look through the links below that take you to more fantastic articles about ALL things DESIGN for your home or business.
Images Courtesy of Canva.
Other Posts You Might Enjoy:
8 Essential Tips for DIY Home Repair
Home Repair – 10 Must-Have Tools
8 Ways to Increase the Value of Your Home
Leave a ReplyWant to join the discussion?
Feel free to contribute!