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How Much Will It Cost to Make Repairs Before Someone Will Buy My Home?

 

Who Will Make The Repairs

When you’re about to sell your home, it’s important to assess the condition of the property. Most homes need a few repairs, but some homes need major repairs. It’s important to take these repairs into consideration before you place on the open market.

If you go through the traditional process of hiring a realtor, posting the home on an MLS service, and mounting a sign in the front yard, you’ll have to negotiate with buyers who will want to live in the home directly. Few homeowners want to inherit a numerous problems after buying. For this reason, buyers will take advantage of the needed repairs to significantly lower the price of the home, or they will demand that you take on the cost to fix these items before they agree to make the purchase.

As you may assume, most sellers don’t have cash up front to make these repairs. If you are able to make the costly repairs, it’s still important to examine if investing in costly repairs makes good financial sense for your bottomline.

 

Know The ‘Bank Breakers’

Before deciding if it’s worth paying for repairs out of pocket is to determine whether or not you are dealing with a major ‘bank breakers’.  Bank breakers are expensive and time consuming repair costs that can quickly add up in cost and interfere with the home’s worth, buyer’s perception, or the house resale value. Repairs that can break the bank include:

 

  • Foundation issues
  • Mold problems
  • Roofing problems
  • Termites
  • HVAC failures
  • Issues with outdoor plumbing or sewer lines
  • Driveway damage
  • Faulty fireplaces and chimneys
  • Electrical repairs, especially if your home isn’t up to code.
  • Severe flood damage

 

Any of these repairs could easily add up to thousands of dollars. You can guarantee that most home buyers will want these repairs taken care of before they finalize a contract and move into your home.

 

Get A Home Inspection

Another issue may be problems with the home that you are not aware of. Buyers will hire a home inspector, and discover additional home problems that can add to the list of costly repairs. We advise you to get an inspection as well. This is additional protection, and you will have a comprehensive report of everything your buyer will see.

 

Do The Math

Work with the hard numbers. Get estimates for every item found on your inspection report that you’re not capable of taking care of yourself. Next, consider the average sales price on comparable homes in your neighborhood. You can use this tool from Trulia. Take the amount of the repairs and subtract it from that average sales price. For example, if the average list price is $162,540 and your home needs $18,750 in completed repairs then your maximum profit is only $143,790.

 

This doesn’t even take other expenses into account, such as the taxes, upkeep, homeowner’s fees, insurance and utilities you’ll need to pay while you’re waiting for the home to sell. It also doesn’t touch closing costs, realtor commissions and other expenses which you may end up paying or sharing. You can get a nice, clear picture by adding in these various costs and fees. For the ones that are recurring, like homeowner’s insurance, you should assess how much you will end up paying if it takes 30, 60, 90, or 120 days for the home to sell.

 

Sometimes what happens is your profit ends up being significantly lower than the outstanding balance on your mortgage. Sometimes, the amount of the continuing expenses will overextend your resources. At that point, you may begin to realize that selling your home the traditional way may not be the best solution for you.

 

Research A Reputable Home Investor

If you have major repairs to make, a reputable home investor is a safe, profitable option. You will get to keep your repair money in your pocket. You’ll get a fast cash offer that might be far more generous than the actual money you’d walk away with if you tried to handle the repairs and sell the home yourself. And you will be able to get on with finding and paying for your next home without dealing with all of the upkeep on your old one.

 

Fortunately, contacting a home investor doesn’t incur any obligations. You can get a quote within 24 hours so that you can see how the investor’s offer stacks up against the numbers you’ve already generated.

 

Now, when it comes to Big State in particular, we’ll also give you a spreadsheet with our own assessment of whether or not it’s going to be more profitable to sell your home to us than it would be to sell it to a homeowner. Thus, you will be armed with a great deal of information which will help you determine what your best option is going to be.

 

While you’re making your decision, be sure to consider hidden costs, such as the opportunity costs that you’ll generate for yourself while you deal with the headaches associated with seeking out major home repairs. Consider the amount of time that it will take to sell the house. Consider whether or not you have the time and energy to make the home ready for multiple home showings.

 

Once you consider the hidden costs of selling your home on the open market you’ll have a very clear picture of what your next move should be. Then, it’s simply a matter of making that move with a smile on your face, content that you’ve made the right decision.

 

To get a no risk, free quote from your friends at Big State, call us at 713-574-0570 or fill out our Quick Offer form, and we will have a quote to you within 24 hours.

 

Source: http://home.howstuffworks.com/home-improvement/repair/10-home-repairs-break-bank.htm  and http://www.trulia.com/home_prices/