Is it Better to Sell a House As-Is or Fix it Up and Then Sell It?
The process of selling a house as-is can be pretty simple. There are various options for your property depending on its current condition. You can list it with a realtor, sell to an iBuyer, or sell to an investor/homebuyer.
If Your Home is Distressed:
Assuming the property is in distressed condition with excessive repairs, listing the property may not make the most sense. The typical homebuyer is looking for a move-in ready home, not an investment property.
If you choose to sell to a realtor when your home isn’t in the best condition, you’ll likely be selling the property to an investor and paying a commission to the realtor. You can find distressed homebuyers like Meli yourself by searching online and looking over reviews.
If Your Home is in Good Condition:
iBuyers like Opendoor and Offerpad can be a fantastic option for a seller if the property is in decent condition and only needs small repairs or has cosmetic issues. If the property has excessive repairs, typically iBuyers will not purchase the property.
When selling to an investor or homebuyer, there are a few things to keep in mind:
- Make sure the buyer is reputable. Check online for reviews to see if the company is credible.
- Ensure the homebuyer is working in your best interest. Sometimes homebuyers will tell you whatever they think you need to hear to buy the property.
- Any agreements made need to be in the contract. Every contract will have an “Additional Items” section. Add anything you see fit in this section. No agreements should be made on a handshake.
If you find a company you feel comfortable working with on your distressed property, this will be the best option in terms of time saved. The reputable company will take care of the situation and give you all your options, with you doing little to no work. This is the value added by a distressed home buyer.
Fixing It Up Yourself
If you have experience in the construction and rehab of residential properties and the time to manage the project, it may be in your best interest to repair the home yourself. You can save money by doing and managing the work yourself before listing it. This will be the best way to get the full value out of the home.
The only downfall of this option is the time that it takes to get the property rehabbed, putting it on the market, and getting it sold. It can take a few months depending on the pace of construction and your dedication to the project.
Simply put, if you are needing to sell your property fast with the least hassle possible, it may be in your best interest to sell to a reputable distressed homebuyer. If you are in no rush to sell the property and have experience in residential construction, you will likely get the most value by fixing the property up yourself and listing it.
If you have any additional questions or you’re having trouble selling your distressed home, please get in touch with us using our contact form, or by calling us at (407) 305-5008.
This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal decisions.
