Should You Fix Your House Up to Sell It, or Sell "As-Is"?
With the fall season upon us, change is in the air. For many families, children are growing up and moving out of the house, maybe leaving for college or taking a jump into the working world. Parents are finding themselves as empty nesters for the first time. The question inevitably arises: is it finally time to downsize?
If you’re pondering that thought, you may also be wondering if you should fix-up your house before you sell it, or go straight to the market "as-is" pricing it accordingly or offering an allowance so that potential buyers can do the updates and remodeling they wish. If you’re one of the many homeowners this camp, here are a few tips to help you decide which way to go.
1. Analyze Your Market
A real estate professional can help you to understand your market and the potential level of buyer interest and demand for your home. Are you in a seller’s market or a buyer’s market? This can change based on the price range of your home, too. A professional can also give you some insight on what you can change or remodel, and how to declutter your house to make it attractive to buyers in your area.
2. Get an Inspector
Right now, the average length of time a family stays in a home is between 9-10 years. That’s a little longer than the historical average, so if you’ve been living in your home for a while, it might be time to make some significant improvements. Think: electrical system, HVAC units, roof, siding, etc. An inspector can give you a better idea of the condition of your home, if it is up to current code standards, and recommendations on how to have your house ready before you put it on the market.
3. Decide If You Need to Remodel
You may also be thinking about driving buyer appeal with something like a kitchen or a bathroom remodel. If so, first dig into the market value of your home, and compare it to the actual cost of the remodel. A local real estate professional can help you determine your home’s market value, and you’ll want to get a few quotes from contractors on the potential remodel pricing as well. Once you have those two factors narrowed down, you can to decide if a remodel will give you a return on your investment when you sell. Oftentimes, it is actually more advantageous to price your house to sell, list it competitively, and then let the buyer pick the colors they want for their bathroom tiles and the type of countertop they prefer. The 2019 Cost vs. Value Report in Remodeling Magazine compares the average cost for remodeling projects with the value those projects typically retain at resale (read our blog post on this topic).
Nationwide, inventory is low, meaning there is less than the 6-month housing supply needed for a normal market. This drives buyer demand, creating a perfect time to sell. If you’re considering selling your house, let’s get together to help you confidently determine what will be the best choice for you and your family.
LOCAL UPDATE for the Charleston, SC market: Our real estate market has softened noticeably in the first 10 months of 2019, especially in higher-priced areas like Mount Pleasant, Daniel Island and Downtown Charleston.
Most buyers are comparing pre-owned homes with new construction, which is priced only slightly higher. Buyers expect a meaningful PRICE DIFFERENTIAL to decide to buy a pre-owned home AND they also want the home to be in perfect condition.
If you decide to sell your pre-owned home "As-Is", be prepared to discount the selling price by twice the amount it would cost to fix it. Because most buyers want a turnkey home and are not interested in taking on the renovation/repair projects.
The best route to get top market price and the best return from selling your home is to take care of all deferred maintenance, cosmetic upgrades and repairs BEFORE you put it on the market.
Call/text 843-900-0155 to arrange a confidential, no-cost Seller Consultation.
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