Repair Before Listing?

[Paul Allen]

Some financial planning clients of mine have a duplex they want to sell. Real estate agent they are working with suggested they sink about $10,000 in repairs before listing it. What is conventional REI wisdom on this? Is it better to repair and then list or list and then negotiate with potential buyers on the repairs?

[Mike Cumbie]

Hi @Paul Allen,

While each situation will be different. If they have the 10K available and on a duplex, I would recommend sinking it in first. Reason is that Duplex properties comp like Single Family Residences. So they are not based off of cap rates etc. You would not want a bunch of built up little things to give the impression the property has not been maintained.

If it was a 5 plex odds are my opinion would be different.

Just my 2 cents