Most home buyers look for a house that is move-in ready.

Buyers who buy houses “as is” often want to make a profit by fixing the house themselves. They will expect a discount on the price of the home to allow for repairs and for their inconvenience while doing the repairs. You need to consider a few questions to decide whether or not it will be worth your time, effort and money to fix up your home before selling it or not.

1.       How quickly do you need to sell your house?

Repairing your house takes time, especially when you have structural defects.  If you need to sell because you cannot afford the mortgage or because you have bought another home, you should sell your house “as is” to reduce the money you need to pay each month.

If you have more time to sell your house, you may be able to fetch a higher selling price if you do some renovations.

2.       What repairs should be done? Are they large or small?

Before deciding which repairs should be done, look at other homes in your neighbourhood. What is their condition compared to your house? What renovations have they done? If they have all upgraded their bathrooms, it might be worth upgrading yours as well.

If your house has significant defects it will take more time and money to fix it.

There are, however, small repairs that you can do that will increase interest in your home.

These can include:

  • Patching all the holes and cracks in walls and ceilings
  • Repairing leaking faucets
  • Replacing worn carpeting
  • Repainting walls with neutral paint
  • Replacing broken windows
  • Replacing old window coverings

Sometimes reinvention, not renovation is needed. Focus on showing your house in its best light. This can be done by thoroughly cleaning every corner of your house, eliminating odors like pet odors and putting yourself in the place of the buyer. Walk through your house and pretend that you want to buy it. What would make it look more attractive? What puts you off? Likely your buyer will react in the same way.

3.       Can you afford to fix it up?

Find out exactly what contractors will charge you to make the necessary repairs. Compare this to your budget. If you cannot afford these repairs, you can sell your house “as is” without having to spend more money.

4.        If you can afford to fix it, what is the return you can expect?

Smart sellers will weigh the cost of the proposed investment against the home’s market value after the repairs are completed.

Most major renovation projects don’t show a return on investment quickly. The cost nearly always outweighs the immediate benefit.

Also keep in mind the neighbourhood homes. Projects and renovations you make that are much higher or lower than the neighbourhood average won’t make back their investments.

It is a good idea to only invest in improvements that will add at least twice their cost to your house’s value.

5.       Are you willing to accept a lower offer?

A lower offer on selling your house “as is” will enable you to sell the house quickly as your buyers will perceive it to be a bargain. However, if you fix up your house you will get a faster response from buyers looking for a ready-to-move-in home. Buyers are willing to pay more for a move-in ready house.

If you decide to sell your house “as is” for cash, you are welcome to fill in this form for an immediate quote for your house and a potential quick sale.

 

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