Before selling your home it’s always prudent to take a hard look at the property in question. You should assert whether it makes more sense to fix up a home in its entirety or to sell it. With whatever maintenance and wear-and-tear problems it has occurred over the years of being lived in says Kerri Nettles. For many people, this is a challenging decision, because, as real estate agent Kerri Nettles points out, it depends on a lot of different factors. The main question, however, is if the return on the investment is worth the cost of fixing the house up. Kerri continues with discussing the dilemma.
“Let’s say you have a neglected house.” Kerri Nettles says. “The gutter is skewed, the faucets leak, the front wall needs a new coat of paint and a couple of tiles in the bathroom have fallen down like broken teeth. What you should you do?” The answer, it turns out, becomes largely tied to the prospective buyer. Many people opt for fix-it-up houses, or fixers. They buy a house at a much cheaper rate, invest some time and money into it, and restore it in the hopes of saving money on their initial investment.
If this group is your target audience, then you’re likely to going to be selling at a loss. At least way less than what your home was originally worth. This is because, although the repairs that the house needs may only total $5000. This price, the fixers are willing to pay will be much less than that because they’re also accounting for their time and the inconvenience it will take to fix the property to a serviceable state.
If, however, the house you’re trying to sell is a complete mess and has many holes, loose bricks, and stains. It might make more sense to just put it on the market for a fairly low price. From there you can see what kind of offers you can attract. According to Kerri Nettles, the reason for this has to do with the fact that repairing such extensive damage to a property yourself is likely going to cost as much or more than the profit you would generate after fixing it.
Homeowners such as Kerri Nettles will tell you that it all comes down to weighing up the costs of proposed improvements against the house’s market value after such renovations are completed. But keep in mind that while replacing foundations and entire sections of the house are extremely expensive. This value can easily accumulate with a simple coat of paint or primer where needed.