If you plan on moving out of your own home right now, you are probably debating whether you should fix your home or try to sell it as is. The choice you make will depend on a number of factors such as the current state of your home and the current state of the real estate market you are in. So, before you put your home on the market, be sure that you know what you are doing. If you need help, consider consulting a real estate agent. After all, a professional of this kind knows the market well and will be able to tell you what is the smartest thing to do with your home.
Moreover, we are also here to help you out! Keep on reading to find out whether you should sell your home as-is or invest in a couple of very important repairs that will increase the overall value of your home.
First, Consider the State of the Real Estate Market
One of the first factors to consider when trying to decide whether you should fix up your home or sell it as-is is to consider the current state of the real estate market. For instance, if your home is in the so-called hot real estate market (highly wanted and desired by buyers), your home is more likely to sell quicker no matter the condition. Moreover, if you manage to gain multiple offers and end up in a bidding war, your home will sell for a lot more than you planned, again no matter the condition.
However, be sure that homes that are worn out and outdated will always sell for a lot less than they are worth. This is especially important for homes located in the so-called slow real estate markets. There, buyers may not even consider checking out homes that need a lot of fixing up. Thus, if you live in a slow market, better start planning the budget for your home’s improvements – that is the only way you can sell your home there.
Do a Competitive Market Analysis
The next thing you need to do before deciding whether to sell your home as-is or fix it up a bit is to do a competitive market analysis. A competitive market analysis, or CMA, provides you with an outline of all homes that have been sold recently in your area. Doing this by yourself may be complex and maybe even impossible, thus, do yourself a favor and hire a real estate agent. He or she will provide you with a proper CMA that will help you make your decision.
CMA will show you whether your home offers more or less than similar homes in your area, it will show you the approximate price of your home (both when fixing it up and selling it as is), etc. So, if you want to find a buyer soon, a buyer who has already booked A2B Moving and Storage and is ready to move in right away, that is, if you want to sell your home quickly and for the best possible price, be sure to acquire a CMA from your real estate agent.
Think About the Likelihood of a Return on Your Investment
If the CMA has shown you that your home is in desperate need of fixing up, you know what to do. Prepare yourself for renovation. However, keep in mind that some renovations are more likely to pay off than others. Thus, be very careful, especially if you do not want to break your budget. At this point, it would be a good idea to hire an inspector and let him tell you what renovations are necessary. Who knows – maybe you can even get away with some easy DIY home improvements on a budget.
If you do have some money to spare, we suggest investing it in things that will pay off in the end. For instance, remodeling a kitchen or a bathroom can improve your homes’ value and add over $20,000 to its current price. Even smaller updates like changing the garage doors or repainting the entire home can do wonders too.
What to Know When Selling Your House As-Is
Of course, it is always easier to work with homes that are in great condition and move-in ready. Those homes sell out quickly and for a good price. They also make moving fun for the whole family, or whoever is moving in. However, there are cases when it just makes a lot more sense to sell the house as-is than to invest a fortune in its repairs. Let’s say that your current home has holes in the wall, stinky floors, and kitchen cabinets from the last century. Let’s also say that plumbing and electricity are not in a good condition. Homes that have these kinds of problems require a lot of investment. And, sometimes it is just not worth it.
If you have a home in this, or in similar condition, it is much better to sell it as-is. You should offer a lower price for it as that will attract contractors and home flippers who may offer a bit more than you asked. If you offer a higher price, the only buyers you will attract are those looking for fixer-uppers, the ones who will be able to negotiate a lower price from you.
What to Know When Fixing up Your Home
If your home is in a relatively good condition, that is, if it lacks the problems mentioned above, it is a good idea to fix it up a bit. A couple of DIY home renovations and upgrades can increase the value of your home significantly. For instance, you should always repaint the walls and remove the old carpets before selling. If there is broken glass somewhere or a lighting fixture that is not working – replace it. Stage your home so that it looks clean, new, and ‘nourished’.
It is easy to get overwhelmed with these kinds of projects, so we advise you to do only those that are absolutely necessary. Gain knowledge of how much you can spend on different DIY projects, and do only those that you can afford. And, most importantly, splurge only on the projects that will pay off.
Meta Description: If you were wondering whether you should fix up your home or sell it as is, you are in the right place. Keep on reading for some advice.