Selling a home is a major undertaking, be it your first, second, or tenth house sale. If you are selling a house that needs some repairs, you should choose between selling as-is, which means in its current condition, or renovating before the sale. Like most homeowners, your primary goal is undoubtedly selling your home for the most money.
While renovations can guarantee a price increase, not all renovation projects are equal. You should strategically choose renovation to save time and boost profits. However, before renovating, consider the perks of selling your home as is to cash home buyers.
When to Sell Your Home As-Is
Selling your home as-is means listing it for sale in the same condition. A typical home sale involves a thorough inspection to identify potential problems in the building’s structure and systems. Homeowners are supposed to conduct renovations if the inspection uncovers some damage that requires repair or replacement.
Selling your home as-is means you won’t be responsible for repairs and issues that arise after the sale. Note that most state laws require homeowners to disclose known issues in their homes to property buyers. You should consider selling your home as-is in the following situations:
- If you cannot afford renovations, Home renovation projects are costly. For instance, HVAC replacement costs $10,000, while roof replacements cost $12,000. Consider selling your home as-is if you can’t fund the renovation project comfortably.
- If you want a cash offer: The number of cash home buyers is rising. You should take advantage of the increasing popularity of cash homebuyers to sell your home for cash.
- If you want to dispose of the house quickly, You may need to dispose of your inherited or family home after a divorce. Moving out of state may also force you to sell your home quickly.
- If the house is in good condition: You can avoid renovations if your home’s major systems and structures are in good condition.
- To take advantage of the sellers’ market: A seller’s market occurs when there is more demand for homes than the number of homes listed for sale. Buyers will overlook and ignore problems if properties are at a premium. Renovating takes time; your home could be ready when the market has cooled off.
You can sell your home as-is to cash homebuyers, iBuyers, or list on the open market. However, remember that you may get few offers, spend more time on the market, or be forced to sell at a low price because of your home’s condition.
When to Renovate Before Selling
Fixing your home before selling can increase its value, balancing the renovation costs. You should consider renovating your home before listing in the following situations:
- Your home has major issues: You can’t avoid renovations if significant problems make it unappealing to potential buyers. Potential buyers, including cash homebuyers, will avoid homes that require substantial overhauls.
- When selling in a buyer’s market: A buyer’s market occurs when more homes are available for sale than the demand or potential buyers. Buyers often have an upper hand in this market and will prefer homes with better curb appeal.
- To maximise the selling price: Making the right renovations to your home attracts a better price. Upgrades that improve curb appeal, such as landscaping, don’t cost much but have a high ROI. A fresh coat of exterior paint also significantly increases your home’s resale value.
- You have the time and budget to conduct renovations: Nothing will stop you from renovating your home if you have time and budget. However, you should consult professionals to identify renovation projects that deliver more value.
Scheduling a home renovation makes sense if your circumstances tick most of the points above. However, remember that the best renovation projects for staging your home aren’t the typical bathroom and kitchen remodels. While these projects can add value, focus on projects with better ROI. Prioritise the following renovation projects:
- Garage door replacement: Replacing your garage door is an easy renovation project that can improve your home value. Potential buyers value curb appeal, and updating your garage door leaves a lasting first impression.
- Energy-efficient windows: Fixing broken windows is an energy-efficient upgrade that boosts property value. Besides saving energy bills, some states offer tax credits for such upgrades.
- A fresh coat of paint: Refreshing your home’s exterior and interior paint is an easier way of making your home feel new. You should choose neutral colours as they give your home a unified feel.
Endnote
Renovations before selling have been a norm for most homeowners. However, you don’t necessarily have to renovate to make the most of your house sale. With cash homebuyers becoming prevalent in the real estate market, you can successfully sell your home without making significant changes. Use the tips above to weigh and guide your decision on whether to renovate or sell as-is.
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