After deciding that it is the right time to sell a property the most difficult decision remaining is often whether to do the necessary repairs on the property or to sell it as is. Because of the nature of properties and real estate investment each situation is completely unique and the best choice can vary based on many factors. A property owner should sit down and strongly consider each possibility and its consequences before making a decision.
Why Do the Repairs?
Doing appropriate repairs on the property can increase its selling price by much more than the actual repair cost. A property that needs extensive repairs is not appealing to buyers and it may take a long time to secure a buyer because of this. Even a property that only requires minor repairs may discourage buyers who feel that it is too much of a hassle or who aren’t sure how much the repairs would cost. Having a property that is in fully repaired position means the property is more marketable and will likely sell for much more money. Many repairs can be done by the property owner themselves for less money and many cosmetic repairs are quite easy to do.
Why Sell As Is?
The most compelling reason for a property owner to sell a property without completing the necessary repairs is that they either do not have the time or the money to commit to the project. If a property owner feels that the repairs will not significantly raise the selling price of the property then there is no compelling reason to do it. This can be the scenario if a house is already priced very high above the neighboring properties and the owner does not believe it can get much higher. It can also be the case if the repairs are simply too trivial to deal with and the property owner wants to move the property fast. Sometimes the repairs are just too extensive to be worthwhile.
When to Repair and When to Sell As Is
Property owners should generally do all the repairs that they can safely afford around the unit unless there are external market pressures conflicting with the price increase the repairs represent. However, in the event that the owner does not have the liquid funds available for repairs or wants to move the property more quickly it can be more beneficial to forego any trivial or nonessential repairs and focus on the main issues. If the property is simply too damaged to repair under a budget then the owner may have no choice but to sell it as is.
Whether deciding whether to do the repairs or sell the property as is, a property owner should consider that there are many simple repair and remodeling opportunities that they can do themselves to save time and money. It’s also important that the property owner consult their real estate agent before making the final decision to ask them what they feel is best for the local market.