Selling a house as-is can be one option to consider if your house needs significant repairs. When a homeowner gets ready to sell their house, there are many things to consider when determining a price. Cracked walls, dingy paint, and outdated fixtures are just a few of the more common items that need attention.
But what happens if the repairs are major? After all, paint, carpet, and outdated fixtures are on the lower end of the budget. Higher priced repairs can often be a deal breaker for a new home buyer. When higher priced repairs are needed, selling a house as is may be a faster and easier way to sell without all the hassle. Below are a few of the pricier repair items that can break the budget, but also some solutions that can help in the selling process.
1) Roof Replacement:
An old roof can be a deal killer for a prospective home buyer. When a house is contracted, a series of processes are set in motion before the bank will loan on a house. Inspectors must approve all major systems, or if repairs are needed, provide a punch list of needed repairs. A roof is a common, and expensive, repair item that some homeowners must consider before selling a home. Most home buyers know that a roof that is older than ten years it will need the be replaced sooner rather than later. Missing or curled shingles are one sign that a roof is questionable. Even more obvious is evidence of leaking through the sheetrock, like water stains on the ceiling.
Solutions: If the roof is questionable, consider selling the home as is at a discount. A Cash or Conventional buyer is likely the best bet if a new roof is not in the budget. However, one note of caution is that just because a roof costs $10,000 does not mean someone will pay that much less than market value. Rather, buyers will discount further for the time and hassle involved with installing a new roof. After all, they can go elsewhere and buy a similar house with a good roof with no hassle. An easier solution is to find someone who can pay cash or use conventional financing. Or another solution is to contact a home investor that buys houses for cash. A company that buys houses as a business will pay cash and close with the least amount of hassle.
2) Central Heat & Air:
Another costly item that can spell trouble is the air system. This is a critical item because it affects the quality of life for a new buyer. A dysfunctional heat & air system is a red flag for a home inspector also. With FHA and VA approved buyers, these systems are critical to passing the required home inspection before the bank will fund the loan.
Solutions: Here again, selling the home as-is can save a lot of out-of-pocket expense on the front end. Certainly having the items repaired can net a higher sales price, but after considering the time-on-market, additional mortgage payments, real estate commissions, and hassle involved, it becomes a cost-verses-benefits scenario. And if funds are not available for repairs, selling the home at a discounted price to a cash buyer or home investment company can save a lot of money, time, and hassle.
Before deciding to sell a house, consider all the costs and potential benefits involved. Even if no repairs are needed, there are still costs associated with selling a house the traditional way. And if significant repairs are needed, these costs can get out of control quickly. With buyers having control of the market, virtually all buyers’ agents are asking for closing costs. And this does not come cheap. Then there are Realtor® commissions, and seller’s closing costs.
If you or someone you know have a house in need of repairs, call us today and find out how we can help you. We offer a free consultation to homeowners, and we can help you with solutions for selling your house as is. Call us today at 405.259.2488
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We buy houses in the Oklahoma City area for cash. Contact us today for a free estimate.