If you are deciding whether to sell your home as is versus remodeling your home and then putting it on the market, it is important to take a look at the market itself before you come to your final decision. Houses, like stocks, are best bought at the lowest price and then sold when the stock is high. If you don’t remodel, the stock will be technically low and if you remodel, you will be effectively be raising the home’s valuation. However, there are a lot of variables to look at before you decide one way or the other. So, should you sell your home as a fixer versus fixing it up? It certainly depends.
No matter if you are looking to put your home on the Philadelphia real estate or Los Angeles real estate market, you have to look at your property and the desirability of the location, and style of your home. Of course, a nice home in a nice neighborhood – especially if it is near the beach – will sell in less than perfect condition with relative ease. In another neighborhood, however, it may be difficult to sell a fixer upper.
When it comes down to it, you also have to look at your own finances. Do you have the upfront capital to invest in major renovations? If the home you are selling is in particularly bad shape – with a sliding foundation and mold issues – you may need a major remodel before you can sell. In this case, you may want to take out a loan against the future sale to remodel the property. There is a good chance that if you fix up the home, you will have potential buyers. In most cases, buyers don’t want a fixer upper in that bad of condition.
Yet, like mentioned above, you may be sitting on a goldmine even though you are sitting on rubble. If your home is in an ideal location, you may be able to sell as is and still make a profit. People with deep pockets are willing to invest in a property – even if they have to raze the home and build anew. For instance, if your property is near the beach or a body of water, a fixer upper will be no big deal to potential buyers and you’ll have no problem getting a slew of offers.
Lastly, homebuyers with modest means want to purchase a home that needs only minimal fixing up. If all your home needs is a fresh coat of paint and some light cosmetic work, there is a good chance that you can sell your home pretty easily in the “fixer-up” state. In today’s economy, homebuyers are looking for solid properties that aren’t too old and that don’t have any big construction jobs ahead of them. If you are trying to sell your property, you may not even want to touch your home, because you could be wasting your money. If this is the case, you may want to put your home on the market sooner rather than later.