If you want to sell your house fast, you have two options: put it on the market as is, thus saving you time and effort in doing renovations, or repair the defects to attract more potential buyers and possibly close the deal quicker and demand a more favorable price.
While time is of the essence with most home sellers who need to sell house fast, coming up with a favorable price is also of great importance. Looking back when I was trying to sell my house fast, as a novice seller my goal was immediate detachment from it, which I have now realized to be an emotional slip-up that cost me a great deal of money. Now, when I need to sell my house fast or I buy homes, I do this with a clear thought thanks to my previous mistakes, particularly those that are “expensive.”
Also, when I feel there is a need to sell my house fast, I would pose for a moment and think about a wide array of factors such as market condition, demographics of my potential buyers, and the surrounding houses.
When Fixing Home Makes Sense
It’s a no-brainer. A house that looks attractive generally appeals to more potential buyers and gives you more negotiating power. Hence, you should address cosmetic defects such as peeling paint, overgrown garden hedge, small cracks and holes on the wall, a loose shingle or two, or a broken window because the costs are fairly minimal despite adding more value to your home.
Other light cosmetic repairs that can add value to your home without breaking the bank include updating your light fixtures, putting in a new carpeting, and even simply power washing your deck.
If you need to sell house fast, it also makes sense to identify your potential buyers. If you think that most of them can only afford a small down payment–and thus you may surmise that they can’t pay for major repairs after purchase–fixing both the cosmetic and structural defects while simultaneously asking for a higher price is the right way to go.
To put this into perspective, a buyer with small down payment will end up financing the improvement through the mortgage.
When Selling As Is Can Be a Good Thing
In some situations, the way to sell home fast might involve zero renovation. Nonetheless, proceed with caution and ask a real estate agent who can give you sound advice.
This is one situation that warrants selling as is: Fixing a structural or other major defect that costs you $15,000 but gives you a post-repair price that is lower than this amount doesn’t do you any good. Simply put, only do renovations that will surely add value to your home, and that value should be visibly seen or assumed to be worth more by your buyer.
Nonetheless, the abovementioned advice is not a hard and fast rule. In slow markets or economic downturns, buyers have the propensity to avoid a home that needs a moderate to significant amount of repair.
Watch Out for Cash Home Buyers
While there are always exceptions to the rule, a good number of cash house buyers do not shy away from fixer uppers provided they come at a huge discount. After all, they think they are assuming the “risk” of the unknown associated with major renovations.
Now that I buy houses on a regular basis, I have come to realize that cash is king as it gives you more negotiating power. But still, I buy homes through other modes of payment.
Another Option to Consider: Isolated or Small Renovation
Before you rip out the old cabinets and window frames to do a major home renovation in an attempt to sell a house fast, why not just focus on upgrading your kitchen instead? After all, most of the houses on the market boast a newly renovated kitchen.
Even a small kitchen renovation might turn into a good investment as a way to sell house fast.
To know more about the ins and outs of home buying and selling, please contact HomeReco. We buy houses at a fair price and assist homebuyers to enjoy favorable deals at the same time. Also, we buy homes ranging from fixer-upper types to spotless abodes.