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Selling a home can be a daunting process for the average homeowner. You’re probably stuck thinking “How am I going to sell my house without making repairs on it?”
Hiring a reputable realtor, agreeing on a fair market listing price, and having potential buyers inspect your home for possible defects while spending months on the market can cause anxiety.
For sellers owning a property needing extensive repairs, the hardships of selling can be overwhelming. Sellers with pristine homes spend money and time to attract the ideal buyer; sellers needing to sell their home without making repairs need to spend more to compete. For homeowners looking to sell fast, selling your home without making repairs might be the best option.
Before embarking on the selling process, homeowners must weigh their options to determine the most economical solution. Smart sellers will compare the cost of needed improvements to the home’s market value after making the necessary repairs.
If the major repairs won’t provide a reasonable return on investment, homeowners may decide to sell as-is. Homeowners can effectively resell their fixer-uppers on Cedar Rapids’s hot seller’s market at a reasonable asking price and skip making major repairs altogether.
While some minor repairs can be made without much effort, major repairs can require ample time and money before closing. Many sellers are faced with addressing major plumbing and electrical repairs or outdated safety code violations.
Serious buyers will create a list of all defects after an initial inspection; if the seller is unwilling to fix them before closing, buyers will demand compensation by siphoning potential profit from the home’s asking price. For sellers with homes needing major repairs, this requirement can be costly and a much-needed home sale will fall through.
Before signing the final closing agreement, sellers often agree to repair contingencies. These legal and binding contracts state that no sale is final until certain home repairs are made to the buyer’s satisfaction. Should major damage and repairs be unearthed during a home inspection, the homeowners are forced to pay or fix those issues before closing.
Homeowners can often be blindsided by structural home repairs after a buyer’s inspection, causing the seller to fix these unexpected repairs with financial forewarning. While most real estate sales contracts include these clauses, sellers can avoid this unnecessary hassle by selling as-is.
Another common disadvantage of repairing a fixer-upper before selling is the inspection and appraisal process. It’s common for these tools that assess one’s property to favor the buyer. While inspections are necessary to determine the condition of a home, many inspectors hired by buyers will list all infractions a home may have, including questionable, minor repairs.
Buyers will then use this information to request additional compensation at closing to fix these insignificant issues. In addition, any repairs newly discovered during a home’s appraisal must be addressed before closing. Once a home’s issue arises during either the inspection or appraisal process, it becomes a material fact that must be disclosed to any future buyer interested in the property. For sellers seeking a quick and clean close, the home inspection process can be brutal.
There are a few key suggestions to consider before signing a closing contract when selling a home without making repairs. When listing your home as-is, be upfront about the home’s condition. Buyers seeking fixer-uppers will be drawn to the home’s potential for remodel while bargain hunters will gobble up the possibility to resell for profit.
This tactic will ensure you receive serious buyers interested in your property and root out buyers who expect an updated and recently remodeled home.
It’s also important to be mindful of the listing price. While neighborhood comps can give the homeowner a general ballpark about the overall value of the home, sellers must consider the cost of repairs when pricing initially. Prices of fixer-uppers should reflect the amount of time and money buyers may need to spend.
To sell your home without making any major repairs, homeowners must be willing to price the property at its current value and without overestimating its worth.
Remember, selling a house as-is does not relieve the homeowner from disclosing material facts or other known issues with the property. If a buyer proposes a serious offer, sellers are legally obligated to disclose any and all pertinent information about the home, including necessary repairs.
If the homeowner is unaware of the general condition of the home – due to inheriting the property or other circumstances – they are exempt from providing a property disclosure at sale.
When selling a house without making repairs, homeowners will most likely hear from two types of buyers: those interested in purchasing the property for themselves and those interested in making a profit at resell. While the former want to mold a worn property into their perfect dream home, the latter sees a fixer-upper as an investment.
Both buyers consist of people who pay cash for houses, but buyers interested in making a profit are less likely to demand even minor fixes or repair contingencies before closing. In fact, the poorer the condition of the home, the more tantalizing to companies that buy houses.
Real estate investors and we buy houses companies can be found in most major cities and towns nowadays. Their “I buy houses” signs are splayed across public benches and plastered on billboards to offer another option for homeowners wishing to sell fast and clean.
These cash house buyers are legitimate people invested in making fair offers at market value to assist homeowners with the selling process. For owners wishing to sell their house without making repairs, companies that buy houses are sometimes the only viable option.
Before outright dismissing the we buy houses companies, homeowners must consider the difficulty involved in selling a home as-is. Homes without repairs can stay on the housing market or months without a single inquiry. Without lowering the home’s price further, sellers must be willing to consider offers from buyers with the financial means to close quickly.
People who pay cash for houses are serious about speedy sales and can see potential and profitability in homes that are otherwise ignored. Homeowners wanting to sell without making major repairs should consider contacting a cash house buyer to avoid the grueling selling process altogether.
No problem! We are here to help you sell your house in Cedar Rapids with as little hassle as possible.
At Next Home Solutions, we will work with you to make selling your house as simple and stress free as possible! All you have to do is call us at (319) 382-6398! We can have your house closed on in as soon as 48 hours, and will get cash in your pocket. We look forward to helping you!