Should You Rehab Your Home or Sell It?

Many people are faced with the choice: sell your house as-is or fix it up? Making the right choice requires you to consider many factors, including your financial situation, the state of your home and the state of the real estate market.

For example; if your home needs a lot of repairs, but you don't have the time, money and energy to support the repairs, selling your home as-is may be the right choice. However, homes sold as-is tend to be less attractive to potential buyers, and offers are often lower because it means buyers will have to pay for subsequent repairs.

Factors to consider about selling your home or fixing it up

Before making a decision, please consider the following:

How is the real estate market?

In a red-hot real estate market, a home can sell within days, get multiple offers and even start a bidding war. In a seller's market, you can often get a good offer with fewer fixes before selling. But even so, homes in need of repairs will still be offered lower prices than rehabilitated homes in any market. Conversely, in a cold housing market, buyers may not even bother to look at homes in need of repairs.

Know the market conditions and other homes for sale

Comparative Market Analysis (CMA) provides an overview of the most recent homes sold in your area. You can ask an agent to provide you with a CMA, which will help you learn about homes in similar locations to yours, gain a clearer picture of the current market price environment, and help you adjust your expectations and determine the listing price.

Calculate your return on investment (ROI)

Some homes that have undergone repairs or minor home improvements are more likely to earn a higher return than other properties that have not been repaired. For example, according to statistics, even a small kitchen remodel can add more than $18,000 to the value of your home, and replacing a garage door can increase the resale value by over $3,000.

Sell The House

Selling a house "as-is" means what the buyer sees is what they get and you are selling the home in its current state. This tells the buyer two things: there might be some issues with the home, and you won't be doing repairs to the property before selling it or giving the buyer any money to make improvements after the transaction is complete. This means that house sold as-is are often listed and sold for less than renovated houses.

In some cases, it makes more sense to sell the home as-is, for example:

• You can sell your house faster: Selling as-is can get your home to market faster than spending time figuring out the problems, hiring a contractor, and completing repairs.
• You can save money: Repairs cost money, and after you've invested a lot of cash on new appliances, floors or roofs, there's no guarantee you'll get a return on your investment from the sale. When you sell as-is, you don't spend money up front, and if you've paid off most of your mortgage you'll be able to keep more of your proceeds as a profit.
• You can avoid fixing things that don't need repairs: Many buyers want to make changes to the home that are more to their taste after moving in. If you spend time and money replacing broken cabinets with new ones or leaking faucets with new ones, there's no guarantee that buyers will like them. In fact, they may prefer to pay a lower purchase price and do the repairs themselves.
• You can attract cash offers: As-is homes often attract the attention of cash buyers, as the lower price may allow them to not have to rely on lenders for funding.
• However, even if you sell your home as-is, you must still disclose any issues you know of. Each state has its own property disclosure rules, so make sure you work with a real estate agent to understand your state's disclosures and make sure you disclose the required information yourself.

Fix It Up

There are also some advantages of selling after repair:

• May be beneficial for financing: Some lenders require the home to be in a certain condition in order for the buyer to obtain financing. In general, structural or safety issues with the home can prevent lenders from approving a loan. A renovated home will be more favorable for buyer financing.
• Additional benefits Homes that have been repaired are typically worth more than homes that are sold as-is. But the cost of these repairs must also be taken into account, so doing some calculations will help you determine whether you will make a profit by renovating and selling after repairs.
• There are more interested buyers: An as-is home typically only attracts a certain type of buyer who is looking for a deal and is willing to do the repairs themselves, which can shrink the demand. The opposite is true for homes that are rehabilitated and then sold. In fact, most buyers are willing to make simple repairs, such as painting walls, putting in new carpet, or replacing light fixtures, but they don't want to rebuild foundations or move walls.

Contact YouLand for Help

Whether you want to sell your home as-is or fix it up and sell it, you can contact YouLand to help you sell your home in less time or to provide a loan to complete home renovations.

YouLand is a technology-driven digital real estate lending platform that specializes in one-stop home loans and offers flexible solutions for every lending situation. YouLand offers the best rates, an automated process for your bridge loans, fast close times, and access to reliable funding to help you save money and time! You can explore more on our website.

If you are interested, please contact us for a free consultation!