This is a common response I get from homeowners who really want to sell, but for some reason think that in order to get your house listed with an agent, it needs to be repaired.
Being someone that has bought and sold houses that needed everything, I think that it isn’t worth it to put the time and money in repairs to possibly get incrementally more money. If you’re selling your grandma’s house that hasn’t been updated in decades:
a) Clear the clutter. Get the house cleaned, make the house look its best WITHOUT the repairs, allowing the buyer to see the house for what it is.
b) Get good comps of move-in ready houses that sold in the area, on a similar block, in a similar area, and same school district.
c) Can you expect someone to buy your house and live in it in the condition that it’s in? If it needs new electric, has super outdated bathrooms and an unusable kitchen, you can’t expect a homeowner to live there- unless they are willing to do the work. You are likely looking at an investor who will buy it and fix it. If that’s the case, you not only have to consider the amount of work that it will take to fix your house, but also the costs that the investor will take on, to do the work AND CLEAR A PROFIT. Whether or homeowner or investor buys the house, you need to consider the time/expense they are taking on by buying something that isn’t move in ready.
For example, if brand new rehabbed homes in your area sell for $350,000 and your house needs everything, let’s just say that costs $125k to fix, just for repairs. You can’t expect anyone to pay $225k for your house just because that’s what a repair estimate is. You’ll need to consider what will make your property worth while for the buyer. The homeowner will pay more, because they don’t have to factor in a profit to sell the house like an investor would. But you still need to consider the costs that either the homeowner or investor would take on.
Lastly, many times I have people come to me with an appraisal, set on thinking that is what they can sell their house for. Just like there are good real estate agents and bad ones, there are good real estate appraisers and bad ones as well. I’ve seen appraisals where the subject property was in completely different condition than a property that was included in an appraisal. I’ve also seen appraisals where the house that was included in the appraisal was something that sold over 6 months ago. Don’t let an appraisal be the end-all be all deciding factor of what your house should be listed at. If the area where your house is listed in doesn’t have properties that recently sold (within 3 months, no more than 6 months), then consider what is currently listed for the same price range and go from there.
Do you or someone you know have some hesitations on listing their house because of its condition? Don’t. As long as the house is priced right, it should sell. As someone who has bought and sold houses for both myself and for my clients that needed tons of work, I have a good understanding of what buyers will pay for a place- both homeowners and investors. Before putting in the time and money to make those repairs, reach out to me. It may be worth it to put a fraction of the time and money to get your house listed and sold!