April 1st, 2022
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.
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 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.
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.
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.
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?
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)
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.
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.
Billy Sutton was great to work with on the purchase of our poultry farm. He provides a wealth of knowledge and we were completely blown away with how resourceful he was. Anytime an issue came up or we were worried about something, he had an answer. He is direct, kept us updated, and made it an enjoyable purchase.
Eddie P.❉April 27th, 2020
Billy contacted me one day and said he had found my way into the poultry business. I had never used a realtor before so this was all new to me. He was very helpful with every question I had. He made sure I was stress free every step of the way, always made sure I had everything done that needed to be so that we were always a step ahead, and always informed me of things to be done that I didn't know about. I would highly recommend using Bill Sutton as your realtor.
Dylan P.❉April 22nd, 2020
A very trustworthy and professional agent. I would definitely recommend him.
Brett D.❉March 9th, 2020
Billy was a fantastic realtor. Being a first time home buyer I was a little stressed and nervous, however, Billy made it stress free and was always wiling to come whenever I needed to show me a house, or answer a phone call to explain something to me. I would definitely recommend Billy to anyone that is buying a house, first time, or fifth time!
Patrick C.❉March 6th, 2020
It was great working with Billy, He is very dedicated to his clients and will go out of his way to satisfy your needs. So if your looking for a hard working realtor Billy is your guy!!!!!
David W.❉November 1st, 2019
If i could give 10 stars I would. Billy was a perfect fit for us. He is a true professional and was very understanding of our concerns. Billy was a great listener. He was with us the entire way. You can call him anytime with question and you will get a very prompt answer. We will definitely use Billy in the future with any real estate needs that might arise. You cannot go wrong with Billy.
Dave K.❉October 26th, 2019
I've heard horror stories over the years in regards to realtors, I guess those people didn't have the right realtor because Billy Sutton did an amazing job, I was looking at houses 2 1/2 hours apart and one way or another he would always show up full of energy and full of knowledge. It's been two years and we still communicate with one another and I recommend him 100%
Jorge V.❉October 9th, 2019
Billy was a pleasure to work with. He's knowledgeable, hard working, and sold my home quickly for a great price. I highly recommend!
Andrew M.❉October 2nd, 2019
Billy is a very knowledgeable real estate agent. If you have a home to sell, give him a call.
Patricia S.❉October 1st, 2019
Billy is incredibly knowledgeable in real estate and talked me through every step of the home buying process for my first home. I went into the process well informed and confident in my decision to buy, and would recommend Billy to anybody looking to purchase a home.
Nick M.❉September 29th, 2019
Lacey is an amazing person she listens to what you want in your dream home and takes the time to find the home that is perfect for you and your family. I totally recommend her to anyone.
Tanya C.❉April 17th, 2020
Lacey was a amazing realtor she worked tirelessly to find us a house that our family would love and she knocked it out of the park. Thank you so much for the hard work you put in.
Larry G.❉March 6th, 2020
I couldn't of asked for a better person helping us with our home! She's highly professional and made sure we found our dream home. Lacey always made time for us as clients and worked so hard to make everything go as smoothly as possible.
Stephanie D.❉March 5th, 2020
Lacey is amazing! She is so patient, understanding, honest and fair! She is everything you would want in a realtor but rarely find. The home buying and selling is a whole process that can be overwhelming and almost impossible if you don't have the right person on your side. She is so caring and pays attention to details you couldn't ask for anyone better to be there with you as you make such an important decision.
Cassi P.❉September 25th, 2019
I have known Lacey for over 15 years. She is one of the most detail oriented and hardworking people I know. I have watched her help people and over again!! I would recommend her to anyone!
Amanda B.❉September 25th, 2019
Whether you’re selling or buying a home for the first time or the tenth time, we’re here to help the process go as smoothly and quickly as possible. Just let us know your real estate goals and we’ll make them happen.
We’d be happy to discuss your home for sale and answer any questions you may have about buying or selling homes in Maryland. Drop us a line or fill out the contact form today – we look forward to getting to know you!