When you are making considerations about selling your house, there are a few defining questions to ask yourself first before your put up the for sale sign. One of these questions to ask yourself is whether you will make repairs to your home or whether to sell your home as is. This is a very important question to consider because the buyers will be different, your marketing strategy will be different, and the prices that you will be able to command will also not be the same. This article will detail what you can expect when consider these two scenarios.
The Types of Buyers
There are three types of buyers that fall into the different repair categories of your home. The majority of home buyers will be buyers that are families, couples, and people who know very little about making repairs or who want to move into a home that they know is in good condition. They do not want to worry about things going wrong, needing repairs, or more complications during the move in process. Thus, they are only looking for homes that are in good to excellent condition and will pay a higher price to do so. As stated, this is the majority of the real estate market, so if your home is being sold as is, you will have a smaller amount of buyers to choose from.
The second category of buyers is the ones that will be willing to fix small to medium repairs on the home. This is the type of buyer that is going to be looking for a fixer upper home. This could be someone that doesn't have a lot of money, or maybe a new family that is buying their first home and they are willing to put in some extra work to make the home their dream home. This category will also include the new investors that are looking for a home with some minor cosmetic repairs that they can flip for a quick profit. These buyers are out there looking for as is homes that only have minor repair work needed.
The third type of buyer is one whose business is purchasing homes to repair. These include real estate investors and contractors. These people are not interested in moving into the home and are not daunted by the repair process. In fact, they make it their business to purchase badly damaged homes and then renovate them. Since they purchase home on a professional basis, often they will be able to make a deal quickly and pay for the house using all cash.
Your Asking Price
When you are looking at the price of comparable homes, then the average of the sales price will be close to the market value of your own home. However, the market value is the price of your home when sold in good condition without the need for repairs. It does not reflect the price reduction because of repairs or damage.
If you are going to sell a house as is you are going to have to lower your asking price to below market value if you are going to get it sold. You are not going to be able to ask the same price as your neighbor who's house is in great condition because buyers are going to choose that house over yours home every time because it is in such better shape.
Tips on Making the Decision
If you do not know the extent of the repairs, consider hiring a home inspector to evaluate the repairs that are needed. He may also be able to give you an idea of the cost and timeline of the repairs to bring your home up to good condition.
If you can afford the money and the time, then it is good idea to have the house repaired and sell it since you will receive the highest sales price for the home.
However, if you need to sell your home quickly or cannot afford the repair, consider going to real estate investors directly. They have the most flexible options and they can purchase a home regardless of the amount of damage.
Article Source: http://www.abcarticledirectory.com
I had my house on the market for way too long and I had to sell now. I just could not waste anymore time trying to do it and then I stubbled upon a great real estate blog that was full of great information.
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