Selling A Home As Is Or Fixing It Up, Which Way To Go?

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.

The Secret to Selling Your Home in 14 Days

So do you need advice on selling your home? Here it is. I went to a home the other day that sold in 14 days. This is in a market that usually takes 200 days or more to sell a home, and this is if it is priced correctly. Here’s what I noticed about the home that sold in 14 days.

Make sure that your home is priced correctly. I mean really priced correctly. Look the Realtor in the eye and tell them you want your home sold in 1 month. It does happen, but only if your home has all of the right stuff. This means that your home must be priced correctly. First, find out what your Realtor thinks your home is worth and find out the WHY. Most comps that I’ve reviewed from Realtors will take an average of the sales in your area. DON’T do this. Have your Realtor find recent sales (within six months), pending sales and active listings and really look at the comps. Use homes that are really comparable to your home. Now that you know what your home is worth, you want to sell your home and fast. Read on.

Get your home ready for sale. This is when your Realtor will shine. First look for any noted or needed repairs that make your home ugly. If your home needs paint, paint it, paint everything that you can. Paint makes things look good, so don’t be cheap here. If you have to, paint your dog. But make sure you use neutral colors and make sure you paint correctly. I went to a foreclosure the other day when they couldn’t figure out how to paint and they slopped paint all over the new trim, the carpet and the flooring.

Check the major items (such as plumbing, lights, furnace, air conditioner, hot water tank) around your home and make sure that are in good working order. Clean the moss off of the roof. Replace the roof, if it shows signs of being at the end of its life cycle (curling shingles). Replace any broken windows or fix any windows that have broken seals and are showing fog or water build up or mildew in them.

Mow the grass. Plant lots and lots of colorful, smell good, flowers. Remove all of the clutter in your home. Act as if you are going to buy your home. Now start cleaning, removing and organizing. It is one of the cheapest ways to be sure your home sells. The home that sold in 14 days was spotless. The landscaping was new and crisp with new. The grass was dark green. There was a new concrete drive to the new two car garage. Next to the garage, there was a nice play area with a separate play area from the grass. This is before I went into the home. This is my first impression and sometimes this can sell your home. Now let’s go inside.

While the cabinets were not new, the counter tops were new. The home was updated with all new bathroom, interior paint, lighting and electrical and new flooring. Now it was clear that the home owner spent a ton of money on this home. I wouldn’t do this without consulting a professional, because there is a good probability that you will not get all of your money back out of these improvements, but if you’ve made these improvements over the years, all the better.

Make sure that your home has all of the correct permit history, because this is one of the biggest deal killers in this area. Major items need permit history. When the appraiser finds out that you added a second story, but didn’t get permit history, the deal stops and you will not get to sell your home until you sort this out. Now that you’ve got your home ready to sell, it’s time to market.

One of the things that Realtors will tell me is that a home owner has a better chance of selling their home if they are available to let the Realtor show the home. Bend over backwards to be sure that the Realtor can have access to your home any time he/she want to. They are trying to sell your home! If you are a difficult person, they will just go to the next home. And the next home may be the one the buyer buys. Don’t give the Realtor a chance to go to another home.

Now ask the Realtor what they are doing to market your home. You want them to be aggressive and list at least ten things that they will be doing to sell your home. If they tell you they will only be listings the home in your local MLS and that’s it, run and find yourself a Realtor that is willing to work and list your home in every on-line directory, newspapers, multiple MLS databases, classified ads in every city and State, high traffic websites, open houses, airports and magazines just to name a few.

If you’ve done all of these things and with a little luck, you’ll sell your home like the owner above did. 14 days, that’s all it took. Now go find a buyer.

First-Time Home Owners’ Must Read Checklist

As first time home owners, you now have a much wider array of choices than you had as a renter. When first stepping into your new home, you need to take in all the changes that must be employed to make the new house the perfect home. Such changes involve furnishings, flooring, carpeting, and you will also need to check for inappropriate changes made by the building contractor. The following checklist will help you get started.

Planning your budget for your new home needs

  • Inspect the new home

Any new home requires a bit of an evaluation before starting working on it in order to transform it into a livable space. Make sure to inspect every single room and write down all that is needed for each of them.

  • Evaluate the needs

The second part is evaluating what is needed for your home to become the nest you are dreaming of. While it may add up to quite an important cash amount, remember that it is all for a good cause.

  • Do the math

Pay attention to the minutest details, and make sure that you have everything you need written down on the list.

Important things to buy before moving in:

  • Locks

Some of the first things you need to change in your new home are the locks. Since other people may have keys to your home, you need to put safety first.

  • Repair tools

Since chances are that your new home is not exactly new, you will need plenty of repair tools, as some of the necessary repairs can be done without the help of a professional.

  • Appliances

You will also need to purchase some necessary appliances, such as a refrigerator, a dish washer, and a vacuum cleaner.

  • Linens and towels

A lot of work will be required as you move in your own home. Some of the things you will need right after will be a hot steamy bath and to hit the pillows. Fresh linens and towels will transform these into a real treat.

  • Floor coverings

Catching a cold is no idea of starting out in a new home. Make sure to cover the floors with carpets for the comfort of the entire family.

Other things to consider for your new home

  • Make arrangements for your kids’ room

The new home must be comfortable for all the members of your family. Consider appointing your kids’ room with all the necessities. Find room for the toys, the clothes, the furniture, and everything else you brought with you.

  • Think about accommodating your pets

Domestic pets also need to be accommodated in your new home. Make sure that they have their own place to sleep and to eat comfortably, and that all their needs are met, so that you do not stumble on them all over the place.

Turning the new house into a home

The little touches make a house into a home. Whether you have a few flower pots brought with you, or you have a collection of rugs from where you stayed before, you will need to employ these finishing touches so that your house can turn into a real home for you and your family.

Furnished or non-furnished?

Advice for already furnished homes:

  • Verify all the furnishings

In case you are moving in an already furnished home, you will need to verify all the furnishings, as many of them may be too old or too damaged to keep. See what needs to be replaced and make a shopping list.

  • Make changes where necessary

Keep in mind that you have no obligation to keep things the way they are. Where needed, make changes. Whether you think a new carpet would fit better in the living room, or some of the appliances are not enough for your family’s needs, replace them.

  • Check for signs of wear and tear

Even furnished houses that look great at first glance have their own skeletons in the closet. It is very important to check for signs of wear and tear, to prevent further complications when you least expect them.

  • Check the lightings

One thing that you may not be very fond of when you set foot in an already furnished house may be about the lightings. Repairs may also be needed, so be prepared to call an electrician.

  • Considering a renovation contractor

A renovation contractor could turn your new house into the home you have dreamed of. Especially if you do not like how the house looks as it is right now, you must employ the services of a professional contractor.

  • Pest control

Another thing that should not be overlooked when inspecting the house is pest control. The little critters can make your life miserable, if you do not take early measures, especially before moving in, when it is easier to use chemical substances to drive pests away.

Advice for non-furnished homes:

  • Inspect the house for any inappropriate jobs done by the contractor

An important aspect to keep in mind when purchasing a non-furnished home is to inspect it for any renovations that are not to your liking or are simply wrong. Doing that first thing is a must as renovation work is more difficult to do once you are installed in your new home.

  • Hiring an interior designer

If you like the house as it is, think about hiring an interior designer. They will be able to give you some great ideas on how to organize the space in your home.

  • Explore the various styles you think should define your home

Your home should define you. Choose a style that you find the most appropriate for you and consult the interior designer about possible alternatives.

  • Things to consider: new furnishings, lighting, décor elements, must-have appliances

Since you have chosen a non-furnished house, you will need to appoint it with all the necessities. Buy new furnishings, if you do not have them already, and install all the important appliances in your home. Lightings are also important, as are décor elements that will make the new house feel like a home for you and your family.