Home Sellers: Fix it up or Sell it as is?

There are benefits and drawbacks to every decision you make in life and the decisions you make surrounding the idea of selling your home are no different. We call it “The Home Seller’s Dilemma” it’s the question that we get asked the most by home sellers, “Should I fix up my house first and then sell it? Or would it be smarter for me to sell it ‘as is’? The short answer: it depends upon your specific goals and current circumstances. Not surprisingly, there’s a lot more to it than that. We have to point out that talking to a good real estate agent who will walk you through all of this is the very best way to navigate this situation smoothly- we’ll get into that part later in the post. For now, let’s unpack this heavy question, shall we?

A few questions to ask yourself

1. Why do I want to sell my home?
   Is it a big life change like getting married, or a new job and you have to relocate, perhaps you ran into hard times and just need to get out from under the mortgage, maybe you saw the market is doing well and you want to capitalize on it or use the money to payoff other loans, you could be retired and downsizing, or upsizing with a growing family. It could be any number of things, and getting clear about WHY you are selling will be a key part in determining your path. In fact, you’ll notice the next two questions are somewhat part of this first one, because the more clear you can be with yourself in the beginning, the more clear your answer will be in the end.

2. Do I need to sell quickly?

3. Do I need to get top dollar out of the sale?

4. What are my neighbors houses selling for and what is the condition of their homes?
   This is important. Again, a good real estate agent will be able to walk you through this effortlessly, but you can get a pretty good idea for yourself by doing a simple search on Zillow, Trulia, or Redfin which will allow you to see homes currently on the market in your area, and if you’re lucky, the listing will include photos so you can get an even better idea for comparison to your own home. It is important to note that the prices you see on Zillow, Trulia, Redfin and the like are LIST PRICES which may end up being different than what the home actually sells for, but for your preliminary research, this will suffice.
   
   side note: it is worth pointing out that while the estimates provided on the sites mentioned above can sometimes be good indicators of a home’s value, they can also be way off. This is especially true in situations where an owner has owned a house for a number of years. Just something to keep in mind.

5. Are there any homes similar to mine that recently sold or are currently on the market?
   If so, these are the ones you will want to hone in on. Look for homes in your area with a similar number of beds and baths, similar square footage and yard situation etc. When you find a couple homes similar to yours, use them as benchmarks. Take several items into consideration including the list price and then look at the aesthetics and compare it to your own home. For example: do this home have an updated kitchen and/or bathroom? Are the paint colors neutral and pleasing? What you are essentially looking for is whether or not this home is in similar condition to your own and if so, would you be happy with selling it at a similar price? If you would not be satisfied selling it at that price, consider making improvements to your home. On the contrary, if you think that your home is already in better condition than that home, and you are happy with that price range, you will likely be able to get away with doing nothing and possibly listing your home at a higher amount (although, be careful here because it may also be the case that the seller of that home has priced it too high. Only time will tell.)

6. Is my home falling apart?
   Does your home need a lot of work? As in, are there mold issues, peeling paint everywhere, ceilings caving in, holes in the roof, severe water issues in the basement (or elsewhere?) If the property in question cannot be easily or economically repaired, you may want to consider selling it ‘As Is’ and pricing it to get as many offers as possible.

Many sellers make the mistake of putting too much money into fixing up their home before listing it for sale by repairing what they believe are the biggest flaws, when in actuality, those ‘flaws’ may be things that a buyer wouldn’t even notice or just won’t pay extra for. This is part of why we always tell sellers that it’s never too early to consult with us- we’re here to guide you through the entire home selling process.

Before you decide to paint the dining room bright pink and install skylights in the master bedroom, understand this: kitchens and bathrooms carry the highest value and return. This does not mean that you have to gut the kitchen and bath and start from scratch. In fact, you may be able to get away with a coat of paint and new hardware on the cabinets or updating the backsplash and some light fixtures.

A good place to begin is with a list

Walk around your home and make a list of everything that is worn out (including carpet or cracked tile), grungy, super outdated, or broken. Also note any cracks, holes, or dents in the drywall or on the ceiling, along with leaky faucets and cracked windows, or broken gutters. If you are trying to maximize the value of your home when you sell it, repairing and replacing the items on this list is a good place to start. From there, consider light kitchen and bath updates where it makes sense.

And most importantly: talk to a good realtor. We have a finger on the pulse of the market, we know what sells and what doesn’t. Talk to us. You will be glad you did.