When you are making considerations about selling your house, there are a few defining questions to ask yourself first before your put up the for sale sign. One of these questions to ask yourself is whether you will make repairs to your home or whether to sell your home as is. This is a very important question to consider because the buyers will be different, your marketing strategy will be different, and the prices that you will be able to command will also not be the same. This article will detail what you can expect when consider these two scenarios.
The Types of Buyers
There are three types of buyers that fall into the different repair categories of your home. The majority of home buyers will be buyers that are families, couples, and people who know very little about making repairs or who want to move into a home that they know is in good condition. They do not want to worry about things going wrong, needing repairs, or more complications during the move in process. Thus, they are only looking for homes that are in good to excellent condition and will pay a higher price to do so. As stated, this is the majority of the real estate market, so if your home is being sold as is, you will have a smaller amount of buyers to choose from.
The second category of buyers is the ones that will be willing to fix small to medium repairs on the home. This is the type of buyer that is going to be looking for a fixer upper home. This could be someone that doesn’t have a lot of money, or maybe a new family that is buying their first home and they are willing to put in some extra work to make the home their dream home. This category will also include the new investors that are looking for a home with some minor cosmetic repairs that they can flip for a quick profit. These buyers are out there looking for as is homes that only have minor repair work needed.
The last type of buyer is the one who buys, and repairs homes, for a living. This will usually be real estate investors and some contractors. This class of people will not want to move into the home and are not afraid to tackle big challenges. In reality it is what these types of people do for a living so it is just in a days work for them. Because they do this for a living they will also usually be able to close much quicker then a traditional buyer, and often they will pay all cash for the house.
The Sales Price
When you are looking at the price of comparable homes, then the average of the sales price will be close to the market value of your own home. However, the market value is the price of your home when sold in good condition without the need for repairs. It does not reflect the price reduction because of repairs or damage.
Thus, if you decide to sell a house as is, then you must lower the price of your home to below market value in order to get it sold. It cannot command the same price as comparable houses in good conditions since home buyers will always chose your neighbor’s home instead of yours because it is in better shape.
Get Help Making The Right Marketing Decision
If you are not sure what repairs need to be done to your home it is a good idea to get a home inspector to come and look at what needs to be done. You may also be able to get them to give you an idea of the cost of the repairs and what it will take to bring your home up to good condition.
If you have the extra money and time you would be wise to make the repairs so you will be able to get the highest possible price for your home.
However, if you need to sell your home quickly or cannot afford the repair, consider going to real estate investors directly. They have the most flexible options and they can purchase a home regardless of the amount of damage.