Before you ever put your for sale sign you have some serious considerations to make and some questions that you will need to ask yourself. One of the biggest choices that you have to make is determining if you are going to sell your home as is, or if you are going to do the repairs first. This question is very important because it will affect quite a few other choices that you make in the future.
When you are making considerations about selling your house, there are a few defining questions to ask yourself first before your put up the for sale sign. One of these questions to ask yourself is whether you will make repairs to your home or whether to sell your home as is. This is a very important question to consider because the buyers will be different, your marketing strategy will be different, and the prices that you will be able to command will also not be the same. This article will detail what you can expect when consider these two scenarios.
The Types of Buyers
You have three types of buyers that fall into one of three categories for repairs on your home. The biggest group is the buyers that either don't want to, or don't have the ability to, repair the home so they want to buy a move-in ready home. They don't want the added headache of worrying about fixing other things, or things breaking after they move into their new home to make the process more confusing. These people are only looking for homes that are good to excellent and they will also be willing to pay a higher price for them. As already mentioned this is the largest percentage of home buyers so if you are planning on selling your home as is you are going to lose out on most of these buyers.
The second type of buyer is one who is open to fixing light repairs. These buyers are in the market for "fixer upper" type of homes. This is perhaps is a family who is purchasing a house for the first time and do not have a lot of money to make the sale, but they are willing to put in the time and effort to making the house their dream. This also includes people who are new to investing and want to do some cosmetic work on a house in order to flip it quickly for a profit. Regardless, these buyers are on the market to purchase as is homes that only need light repair work.
The third type of buyer is one whose business is purchasing homes to repair. These include real estate investors and contractors. These people are not interested in moving into the home and are not daunted by the repair process. In fact, they make it their business to purchase badly damaged homes and then renovate them. Since they purchase home on a professional basis, often they will be able to make a deal quickly and pay for the house using all cash.
The Sales Price
When you are trying to figure out the right price for your home you will want to look for the average sale price of the home in the market to determine fair market value. Keep in mind that the fair market value is based on homes that are in good condition and don't need a lot, or any, repairs, and it does not include any reductions you will have to offer because of the damage to your home.
If you are going to sell a house as is you are going to have to lower your asking price to below market value if you are going to get it sold. You are not going to be able to ask the same price as your neighbor who's house is in great condition because buyers are going to choose that house over yours home every time because it is in such better shape.
Tips on Making the Decision
If you do not know the extent of the repairs, consider hiring a home inspector to evaluate the repairs that are needed. He may also be able to give you an idea of the cost and timeline of the repairs to bring your home up to good condition.
If you have the extra money and time you would be wise to make the repairs so you will be able to get the highest possible price for your home.
However, if you need to sell your home quickly or cannot afford the repair, consider going to real estate investors directly. They have the most flexible options and they can purchase a home regardless of the amount of damage.
Is It Possible For Vacant Houses To Hurt An Entire Block?
The process of selling your home can be a very complicated thing, and if you have distressed homes in your area it will make it even harder because they can lower the value of your house. Sadly, in today's market, it is a very real possibility even if your house is in great condition, if you are in an area that has a high number of foreclosures and short sales, that your house will suffer right along with those houses.
Do You Know What Happens During The Foreclosure Process
There are not a lot of people that think about the possibility of losing a house to foreclosure when they first purchase the home. The process of foreclosures is not something that happens right away and in the following article we will talk about the various steps that a lending institution can take during the process.
What Repairs Should I Make To Get The Highest Return On Investment
You can tell that home repairs shows have been gaining in popularity due to the large number of shows that show off expensive, over the top repairs. Even if the upgrade is able to get the buyer to say wow the real question is if the expense will actually garner you more money? You do not want to put lots of cash into upgrading something only to find out that you have actually caused your home to be less marketable to home buyers.
