Should you fix up your home to get it sold, or sell it as-is?

Now that it comes time to sell your home, you realize that there are some things that you should have done over the years, but chose to do others for one reason or another.  You may have focused on the interior, and now your home is missing curb appeal, or you may have focused on the exterior, and the inside needs updating. So what do you do?

The answer will depend greatly upon a number of variables including your available funds, estimated time frame of completion of any work to be performed and whether or not that work can be completed while the home is on the market, the likelyhood of the return on your investment, the current real estate market climate and the number of competing homes in your price range. Your agent should be able to guide you as to what would make the most sense in your situation.

If fixing up your home seems to be the best choice: Make a list of everything that needs attention, whether it is defective, broken or worn out. Don't be afraid to ask your agent for assistance on this. It is important that buyers do not spot problems or issues before you do. If a buyer sees a number of minor issues, they may think that there are more issues that have gone undetected, and pass on your house.

Here are a few improvements to make before selling your home:

Remove and replace dated light fixtures and make sure EVERY light in the home is working properly, and that there are no dim areas.
Remove excess furniture, clutter and personal effects. (see staging articles )
Paint walls that need it, and if any room color is dark, paint it a neutral color.
Make sure that your heating and cooling systems are operating properly.
Note any plumbing issues and repair (including leaky faucets)
Replace worn or outdated carpeting. (If there is hardwood underneath your carpet  in good condition, just remove the carpet)
Replace broken windows, rotted wood, and make sure all doors and locks are working properly.

Weigh the cost of individual proposed improvements against the home's estimated market value after the repairs or upgrades are completed. See my prior post on Return on Investment for Home Repairs.  Improvements should not be warranted if the cost of that improvement outweighs the return. Before you decide to change the carpet, or re-roof your home, look at this prior post regarding return on investment percentages. You may also want to view a few homes that your  home will be competing with- if most of these homes have amenities or upgrades that yours does not, take that into consideration as well. If the kitchens are upgraded, you may want to consider an improvement, just don't overdo it. If you will be replacing appliances, there is no need to go top-of-the-line. Mid-range is fine. Remember, those appliances would be brand new, and that's a bonus within itself.

Selling your home in as-is condition: If you are considering  selling  as-is route, just make sure you have carefully thought out the following: Is it that cumbersome, or costly to do any repairs whatsoever?
Have you priced it correctly for the repairs, improvement that it needs?

Fixer-uppers have some appeal to  a general market, it just depends on the scope of repairs, or improvements that are needed. Minor cosmetics won't scare a number of buyers away who are willing to do some work by themselves, however when the minor repairs or cosmetics get to be too much to handle, they, too will pass. Limiting your market if you don't absolutely have to is not the best idea.  Remember, if an upgrade or repair costs $3,000 for example, you can expect the buyer to want to reduce the price by about $4,500 , just for the inconvenience of doing the work themselves. It's not a rule of thumb, it just seems to be a pattern that I have seen. When you price your home, and your agent creates marketing materials for the home,  you may want to note that you have reduced the price accordingly to offset the work needed, and hopefully that will head off any lowball offers.

Truly, you need expert guidance in any circumstance, and the advice that I would give you  is going to be different than the advice that I may give your neighbor. You have twoo different houses, and two different sets of circumstances regarding yoru proposed sale. When you are ready to make a move, and need a professional, call me. I'll be right to the point, and guide you in the best direction possible.

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