Should I Make Repairs to My Home or Sell It As-Is?

So, you’ve decided to sell your home! But wait—there’s a dent in the dining room wall from when your kids were playing catch indoors. The roof leaks when it rains too hard. And then there’s your ancient dishwasher that only works half the time.

It’s time to decide: Will you pursue those home repairs before listing, or will you sell as-is? Read on to learn about the advantages and disadvantages of each option.

What You Should Know Before You Sell As-Is

If you choose to sell as-is, this means you won’t be making any repairs or updates to the home before it’s sold. The buyer agrees to purchase the home in its current condition, without negotiating any extra funds from the seller to pay for future improvements.

You are still legally required to disclose all known problems in your home before the sale. It’s prohibited to conceal any major flaws in the home or lie when faced with questions. The potential buyer may also opt for a home inspection. Regardless of any problems found, you won’t be responsible for fixing them.

The Pros of Selling As-Is

The main benefit is obvious: convenience. It encourages a quick process from the time you decide to sell to the time the house is listed. On top of time saved, many buyers sell as-is because they simply do not have the resources to repair the home.

Selling as-is can also be a good option if you are trying to sell a house you aren’t too familiar with—maybe you haven’t lived there very long, or maybe you inherited it. That way, you won’t have to worry about any surprise issues that might pop up. If your house is about to be foreclosed upon, a quick sale without worrying about repairs can help you avoid foreclosure.

Keep in mind that while the majority of buyers prefer updated and move-in ready homes, there are some who love hunting for a bargain and doing renovations themselves. House flippers and real estate investors will often purchase in cash, which is a plus.

The Cons of Selling As-Is

From the start, you’ll have to accept that you’ll get less money for your home. Buyers know you won’t be making any improvements so your price will need to reflect that. For example, if you know that your roof requires a $10,000 repair, you’ll need to knock that $10,000 off your asking price.

·        Seeing “as-is” on a listing can be a turn-off for many buyers. They may assume you are hiding a major issue or that the house is beyond repair. Or they may simply shy away from the effort of a fixer-upper.

·        Low offers may come in from non-serious buyers. You’ll have to work hard to prove the value of your home, whether because of its great location, potential to build equity, or bargain of a price.

Things to Consider about Home Repairs

A home sold as-is may be listed quickly, but a home that has been repaired will most likely sell quickly once it’s on the market. In addition, homes that have been renovated will generally attract higher offers and maximize your profit.

What Repairs Should a Seller Make?

Perhaps your home needs simple cosmetic repairs: holes or markings on the wall, chipped paint, broken windows, or dated fixtures. These are relatively easy to fix. And if you consider yourself handy or have a DIY-loving friend who’s willing to help, why not tackle those cabinets that need to be repainted? A simple coat of paint to refresh a room could make a world of difference to a buyer and bump up your selling price.

On the other hand, a home in need of major renovations could scare off potential buyers. A roof that needs to be replaced or a faulty foundation could be a deal-breaker for some people. In 2021, 36% of buyers wanted to avoid potential issues regarding plumbing or electrical.

Whichever repairs you decide to pursue, you’ll want to do your research. Determine the value of your home in its current state. Gather estimates from contractors for larger repairs. If you’re doing it yourself, note the cost of materials—and don’t forget the value of your time. Then have an expert estimate the value of your house after these potential repairs. Would you gain or lose money from these renovations?

What Home Repairs Add the Most Value?

It’s not just important to note the scope of home repairs. You’ll also need to consider the value added, which will vary depending on the project. Renovations that offered the highest returns in 2021 included:

1.      Garage door replacement

2.      Manufactured stone veneer

3.      Minor kitchen remodel

4.      Siding replacement (fiber-cement)

5.      Window replacement (vinyl)

6.      Siding replacement (vinyl)

7.      Window replacement (wood)

8.      Deck addition (wood)

9.      Entry door replacement (steel)

10.  Deck addition (composite)

How to Repair Your Home on a Budget

If you simply don’t have the means for a full overhaul before listing your home, there are other options. A home equity installment loan (HELOAN) or home equity line of credit (HELOC) could help you build the value of your home with improvements you couldn’t afford otherwise. Both use your home equity as collateral with relatively low interest rates. The HELOAN gives you access to funds as a lump sum while the HELOC offers you a line of credit similar to a credit card. These can be great options if used to invest in your home before listing.

Do Your Research with the Help of a Real Estate Expert

Before you make a decision on whether to repair your home or sell as-is, consider the state of the real estate market. If it’s a sellers’ market, it may not matter as much if you repair your home. In a buyer’s market, you’ll have more competition and may want to invest in making your home more appealing.

Research your area as well. As an example, if you’re listing a home for sale in Kent County, MD and across the Eastern Shore - you’ll want to visit a few open houses or online listings and assess your competition. Do most of the other homes for sale have renovated bathrooms and modern kitchens? If so, you might want to consider updating yours.

The best thing you can do is to consult a real estate expert. And once you are ready to list your home, the Sutton Team at Coldwell Banker Chesapeake Real Estate is here for you. Contact us and get the process rolling today!

Billy and Lacey Sutton are Realtors serving Chestertown, MD and the Upper Eastern Shore.