Out of 10 property sellers, at least 3 ask themselves if they should do major repairs before selling their homes. You can always market your property as a fixer-upper and sell it “as-is.” But that will limit your buyer pool. Depending on the current condition of your home and what your design plan might be, performing these updates can greatly increase your chance of selling your property quickly.
There’s definitely a lot of questions out there regarding home repairs, so let us dive deeper into this subject matter and answer them along the way.
What Can A Major Repair Do To Your Property?
That’s initially the first question that will pop up in every property seller, especially the new ones in the market. What can a major repair do? Will it be beneficial for me? Or will it just be an additional expense that would hurt my finances?
Technically, selling a house that needs repair work will require a budget, and it will need an even bigger budget if the owner intends to do a major repair. However, even with the expensive cost that the owner will shoulder, many are willing to do it because of these significant reasons.
Reason 1: Value Boost In The Market
For typical home buyers, major repairs are laborious and even more so expensive. If you want to find a direct buyer or close a deal quickly, major home repairs can do the trick. It might be initially expensive, but you’ll actually gain more profit from doing it in the long run.
Repaired roofing, renovated kitchen and bathroom, and maintained lawn landscapes would significantly increase your property’s market value instantly. Your marketing technique can also help, such as posting your property for sale with better tagging and description.
Many buyers and real estate agents searching in the housing market are looking for a straightforward and precise description of each listing.
Reason 2: Increase Chance To Attract Buyers
There are different types of buyers out there in the housing market, and you should be able to pinpoint who you are targeting. According to real estate experts, many home buyers want to settle in a home-ready property, and this is where you can take advantage of it.
Nevertheless, doing major repair work on your property doesn’t just attract one type of buyer in the market. There are also other types of buyers, such as cash buyers and first-time buyers.
First-time buyers who used to be long-time renters look for properties that don’t require them to do any hard task after purchase and want to move in immediately.
Doing Major Repairs Now Can Be Beneficial
We have mentioned earlier that major repairs and home renovation are quite expensive. But here’s the thing: if you decide to perform major repairs for your property long before you pre-sell it in the housing market, you could profit from it. Here are the reasons why.
Benefit 1: Gives You Time To Shop For Less Expensive Materials
This is the most crucial part of doing major repair works—shopping for materials. You will have the time to shop around and look for materials that fit your estimated budget. You can even compare prices and layout your costing efficiently.
Pro-tip: Only do major repair works that can boost the value of your property to the level of the neighborhood. Don’t make your home the most expensive one!
Benefit 2: No Rush Jobs
The worst scenario in these projects is if the contractor is caught in a tight timeline. This will lead you to have your repair works done in a rush, and you can expect that there will be flaws, which just means more expenses to incur.
If you decide to have major repair work done now, you should avoid rushing it to ensure high-quality repairs. You wouldn’t want to pay twice because of a bad repair job.
Benefit 3: Total Cost and Final Property Value Difference
Major repair works done before the listing allows a property seller to gain even more significant profit. Look at it this way, the total repair cost done six months ago is way cheaper than the current prices, including the materials used. Plus, the contractor fees before are not as expensive as the current fee today.
Furthermore, the property already gained a value boost. Thus, the seller has the chance to increase its value in the market. If a deal is closed, the seller earns more than what is spent on the repair works, especially if it’s a major one.
Major repairs can be expensive. But when done, the thorough research and wise decision-making give the property seller a competitive advantage. Most of today’s buyers are targeting “move-in ready.” So if that phrase describes how you’re selling your property then you will be well on your way to profit more when closing the deal.