The housing market fluctuates depending on seasons, supply and demand, and it depends greatly on the economy of area in Houston the home is located. Not all areas have been hard-hit, and some areas sell quicker than others. You want or need to sell in the shortest period of time. Perhaps you are facing foreclosure, you have finally secured a new job and it is out of town, or maybe you have lost one of a two-income household through divorce, loss of employment, or a happy addition to the family.
You have stepped up to the plate and taken inventory of your home as compared to the ones in your neighborhood. You know what needs to be done on the exterior to bring it up to par. Do you know what needs to be done on the interior? There is a difference between need and want.
What need to be done are those items that bring the house up to code. If you are still living in the home you want to repair any broken windows. If the screens are torn and dilapidated you can just remove them and let the new owner purchase those to his liking.
Selling As Is
Anytime you sell a home that needs work, it reduces the value of your home and how much you can expect to receive.
Determine Your Bottom Line
First, determine the bottom line for the amount of money you absolutely need from the sale of your home.
For instance, you have surveyed the homes on your street and they all have fairly decent roofs. Yours definitely needs to be replaced because there are leaks coming in during a hard rain. You have asked a real estate agent to do some comparables for you and she said that the last three homes that have sold in your neighborhood went for an average of $135,000. The cost of a new roof might be around $8,000. A prospective buyer will deduct the cost of the roof plus the cost of the inconvenience to replace it from the final offer.
If you have $8,000 to repair the roof in time to sell, you would be able to recoup the expense plus a few thousand.
When you are selling to an individual who will be getting a conventional or FHA/government mortgage, there are certain items that are a must before the home can be sold. There are also state and county requirements. You want to be knowledgeable of all of these items and make any and all repairs that could be code violations.
You have decided that the rock bottom price you can accept for your home is $110,000. The repairs that will bring your home up to code will cost $12,500. Your new bottom line is now $122,500. (Don’t forget the agent’s commission if you are going through an agency.)
Think About What Byers Want
Second, remember that potential buyers see what they want to see. If your house is a fixer-upper, the person purchasing the home may want to flip it. However, there are many first time buyers who want to make a good buy on their initial home and spruce it up the way they want. They will want to make general cosmetic renovations like the kitchen and bathrooms. These are the hot commodities in the market today and are the areas in the home where updating can bring the best return on investment.
You may be selling your home as is because you are in dire financial straits. This means you have no money to make many alterations, if any. If you have a small budget, begin with the things that are the most noticeable. Make sure you have working light bulbs everywhere in the home. Although it may take some money and a lot of elbow-grease, cover all walls with a fresh coat of neutral paint. It is best to use off-white rather than an institutional bright white. Be careful if you select beige. Make sure the color doesn’t just make the walls look dirty. Prior to painting, seal any chips or cracks for a seamless finish.
Even if your carpet is worn, make sure it is clean. You can rent a carpet cleaner at virtually any super market or hardware store. You may have a small, outdated kitchen, but if it is clean with no messy grease in and on the oven, it will give the impression that those who live in the home gave it loving care. Just because you are temporarily poor does not mean you have to be messy and shabby.
Alternatives for Selling As-is
The third thing to remember is that you can sell your home in the Houston area for quick cash to Big State Home Buyers. When you sell your home for cash you can almost throw out all the rules. Companies who purchase your home for cash do not have to go through the traditional lending process so you do not have to worry about bringing your home up to code. You do not have to worry about replacing windows, screens, carpeting, paint or any other problem. In many instances you do not even have to worry about cleaning the house after you move. When you sell your home for cash it is a turnkey process.
Selling for cash takes a fraction of the time of a conventional sale. If you need to move immediately or get out from underneath mortgage payments as quickly as possible, it can be a blessing. Do not expect to get as much cash as you would if you had repaired all the problems with your home.
Also, if you choose to sell your home for cash, the buyer will have his own professional inspect your home. You still need to disclose any major problems as you would to a conventional buyer, you just do not have the responsibility of fixing everything yourself.
Selling your home “as is” can give a person who needs a quick home sale an advantage. When a prospective buyer sees an “as is” sign in Houston it often means the same to them as a going out of business sale. They know they will get a bargain and you will get out from under your obligation as quickly as possible.
For more information on how we can help with your home, call us.