My Home Needs Major Repairs and I Need to Sell Fast
What Are My Options?
A homeowner asks: I’ve spent a lot of time trying to keep up with the maintenance on my 25 year old home, and I’ve spent money remodeling the master bath, but most of the interior needs a lot of attention. The exterior shows signs of dry rot and we have had problems with mold in our upstairs bathroom. We have fairly new appliances in the kitchen, but mostly, it could use an update with new cabinets and counters. Should I fix up the house myself, or sell it as it is?
Answer: Well, there isn’t one solution to this equation. There are many factors that would influence this decision: the likelihood of a healthy return on your investment, the time and resources you have to make repairs, and the overall state of the current market (in your area).
Selling a home that needs major repairs:
If your home is in need of some major repairs, there is a chance that buyers will be too afraid to purchase. It’s scary for a traditional buyer to come into an investment knowing that he or she will be investing hundreds of thousands to buy, and potentially thousands and thousands more to cover the cost of repairs. Plus, the chance of your buyer qualifying for their loan reduces as well. Many lending institutions are weary to offer a loan for a home that is falling apart and overall, just too risky.
If years have gone by and some of your small repairs have transformed into big problems, you really have two options to consider:
Hiring a Contractor
If you aren’t afraid to tackle the major repairs yourself, and you have the funds to do so, the first place you should start is by finding a contractor. Focus on repairing the items that absolutely need attention, and don’t be consumed with the smaller cosmetic items. Fixing your counters will mean nothing to a buyer if the foundation is cracking or the home needs a new roof. In order to tackle these tough renovations, do yourself a favor and hire a real professional. When choosing a professional contractor, do your due diligence and ensure that:
- They have a professional license
- Their work is reputable and they can provide references
- Their estimates aren’t higher than other contractors you’ve considered
In many cases, normal people just CAN’T afford the expenses or time associated with major repairs (broken down below). Mortgage premiums are already higher in California than most other areas in the United States, not everyone has the extra $30-100,000 to pour into repairs. If you don’t have the time or money to invest in remodeling, your best option is to not touch a thing…and let professional home buyers take care of it.
How much would the repairs cost me?
The costs (both opportunity and financial) of your potential renovation really depend on the severity of repairs. Before considering the two options above, be sure to do your research and gain a full understanding of just what kind of construction commitment you’re dealing with. Here are some of the “minimum improvements” said to be made before selling your home:
- Fix Faulty light switch ($40-$106)
- Repair Leaky Faucet ($100-$400)
- Adjust out-of-alignment doors ($40-$355)
- Patching up drywall ($97-$286)
- Repairing cracked tile ($35-450)
Is ROI Guaranteed?
Hopefully the data above helps paint a clearer picture of exactly what we mean when we say “major repairs.” Major repairs can cost homeowners upwards of $100,000 here in San Diego County. Facing issues yourself means figuring out how you would benefit in fixing structural defects, or simply selling your home just as it stands. If the repairs cost $20,000 and it results in a sale price of $30,000 higher, go for it. If the post-repair price is only $15,000 more, then definitely don’t do it. Do your research to determine which upgrades and repairs will actually increase your home’s value. The outcome is circumstantial, but one thing you need to remember is that there is no concrete guarantee that your home will sell at all when you list it traditionally.
Do buyers want fixers or fixed up houses?
Some traditional buyers are interested in fixer uppers, but that typically means that they are okay with putting in the money to make cosmetic changes that make a home appeal to their personal taste or style. A “fixer” that could use a cosmetic remodel versus a fixer that needs major repairs are two different stories. Not many first-time home buyers will want to make a purchase that requires them to move walls or make major repairs to the foundation etc.
But, we will. We are a buyer that specializes in purchasing properties that need a lot of repairs, and love. Big repairs and remodeling projects won’t scare us away! Actually, quite the contrary – we welcome the most difficult of repairs. Unlike your traditional buyer, we have hundreds of years in construction and home renovation services experience, so we know how to care for the tough “hard to sell” properties. So if your repairs are “major” and you need to sell, consider selling direct to a buyer who will make all of those repairs themselves. You won’t have to fork out the cash for repairs, or wait to see of the renovations pay off, and you can ultimately enjoy a convenient sale (renovation dust-free).
Once you click “Get an Offer Today”
- A home buying specialist will call you within minutes to learn more about your property
- We submit an offer. If you accept, they will visit your home and explain things further.
- You pick the closing date, and we buy your house in as little as 7 days.