So, you’ve just discovered that the foundation of the house you’re looking to sell is cracked. Yikes! Or maybe your home inspector has told you that the only way to stop your roof from leaking is a complete roof replacement. Or most of the home’s wooden frame has been eaten up by termites.
Now, regardless of the size and nature of the calamity, there’s nothing that can’t be fixed. However, is it sensible to get the house repaired before selling it? Well, that’s another question entirely.
Selling a Fixer Upper As Is
The good news is that it’s definitely possible to sell a fixer-upper as is. In fact, if you watch HGTV, you know that people have made TV show careers out of buying broken down, derelict houses, fixing them, and reselling for a profit.
However, whether you should sell your fixer-upper as is depends upon various factors. These include your equity in the property, your financial situation, and its potential sale price after renovations and improvements.
The best course of action is to consult an experienced home valuation expert. They’ll be able to determine if the difference between the repair costs and potential sale price is worth investing your time and energy to repair the property.
Now, even if you’re not interested in repairing the property, you can come out on top with the sale if you can get a price that’s higher than the remaining mortgage balance on the property.
Minor Improvements Will Help—Even If You Can’t Afford The Larger Repairs
Offloading a property that’s in need of significant repairs can be tough. However, if you invest a little money in minor improvements, such as a fresh paintjob, new light fixtures, and baseboard repairs, it can make the property a lot more attractive to potential buyers.
Full Disclosure Is Vital
In whichever condition you decide to sell your property, remember it’s vital that you come clean about all the issues it has. In fact, you’re legally obliged to fully disclose all faults and issues to potential buyers. So what are the things that you have to disclose? Well, the laws vary from state to state, but sellers are generally obliged to disclose major issues like flooding, sinkholes, or lead paint.