Are you thinking about selling a home that needs work? If so, you have two primary options. You can sell your home after making some updates and repairs or sell as-is.
Of course, each option has its pros and cons. Making renovations will help you sell your home for more money, but is it worth the time and effort? Selling a home as-is, on the other hand, may save you time and money, but is it possible?
Your answers to these questions depend on the condition of your home and the circumstances under which you are selling it. We’re here to provide some guidance on the topic. Keep reading for everything you need to know about selling a house.
The Pros and Cons of Renovating Your Home
First, let’s take a look at making repairs and renovations to sell a home traditionally. This is the most common choice for homeowners in any real estate market.
Pro – Increase the Value of Your Home
When someone lists a house for sale on the market, they want to get as much money for it as possible. Making renovations, repairs, and updates will make that goal a reality.
However, homeowners must exercise caution and do some research to learn about their potential ROI (return on investment) for each renovation. Some people put more money into renovations than what they get out of them.
Additionally, some repairs or updates may be required by the buyer or their lender. Certain conditions or damages can disqualify a home depending on the lender and the type of loan.
Pro – Appeal to More Buyers
One of the biggest benefits of selling a house that’s been renovated is that it will attract more buyers. Most home buyers are looking for homes that are move-in ready. Minor issues and cosmetic repairs aren’t a big deal, but the traditional home buyer isn’t looking for a fixer-upper.
Completing repairs and renovations means gaining mass appeal for your home. If you’re selling your home traditionally, it will result in more offers from interested buyers.
Con – Costs
Did you know that the average home seller spends over $21,000 between realtor fees and renovations? That’s a lot of money to invest in a home you’re no longer going to be living in. And this figure applies to the average home seller.
If your home is in particularly rough shape or you have major repairs to complete, your costs will be much higher. And, as noted earlier, homeowners don’t always see a complete return on these types of renovations. You could end up spending way more money than the amount of value you add to the home.
Con – Time
If you make repairs and renovations, rather than sell as-is, it’s going to take a lot longer. Depending on the amount of work you want to do and what types of damage your home has, it could take months to complete.
If you need to sell your home quickly or are trying to take advantage of a hot market, every day your house isn’t on the market is vital. And it’s not just about how fast you can get things done. You’re also relying on contractors, appraisers, inspectors, and more.
The Pros and Cons of Selling Your Home As-Is
Now, let’s take a look at some of the pros and cons for people who decide to sell as-is. Selling a home as-is means avoiding repairs and renovations.
This obviously means saving money. But is it the right call?
Pro – Save Time
Deciding to sell as-is can save you a substantial amount of time. However, you have to go about it the right way. If you try to list an as-is home on the traditional market, it could sit idle for weeks or months waiting for the right buyers.
Instead, sell your house to a cash home buyer. We will buy a house in any condition. You won’t have to take the time to make repairs, schedule inspections, schedule appraisers, give tours, or wait for offers.
Pro – Save Money
Making repairs and renovations costs money. Sometimes, homeowners are lucky and their insurance pays for some of the damages. However, it’s more likely that you would have to front the bill yourself, especially for updates and renovations.
You can save even more money if you sell as-is to a cash buyer. This way, you can avoid realtor fees, closing costs, inspection fees, and appraisal fees.
Pro- Solve a Difficult Problem
Sometimes, selling a home as-is to a cash buyer is the perfect solution to a complicated problem. Because cash home buyers operate so quickly, they can help homeowners who:
- Are facing foreclosure
- Are being relocated for work in the near future
- Are going through a divorce
- Have inherited a home they don’t want
- Have a rental property they need to sell
- And more
We can close on your home between 5 and 15 business days but have closed in as little as 4 days in the past. If you need an immediate sale, selling to a cash home buyer is an easy option.
Con – Potentially Earn Less for Your Home
If you decide to sell as-is, you must accept that your home will be worth less money. Buyers won’t spend as much money on homes they’ll need to put work into. They’ll also try to walk the price down during negotiations.
Con – Limited Buyer Pool
Finally, selling a house as-is will significantly restrict your buyer pool. As noted earlier, most buyers are looking for homes that don’t need a lot of work. They want something that’s move-in ready, clean, and updated.
In the traditional market, you can find couples looking for fixer-uppers as project homes. You’ll also find individual people who want to fix and flip the home to earn a profit. However, your house could sit on the market waiting for the right buyer for a long time.
Are You Going to Renovate Your Home or Sell As-Is?
As you can see, there’s a lot to think about when you’re considering whether you should renovate or sell as-is. What is the right choice for you and your family? What is the right choice for your budget?
If you’re interested to see what a cash buyer can do for you, we can help. Contact John Buys Houses to get a free cash offer on your home today. We would love to buy your home in exactly the condition it’s in right now.