When you are facing the need for speed in the sale of your Billings house it’s natural to consider just sticking it on the market, as-is and hoping someone will take it off your hands.
Natural, yes, but wise? Not really.
Yet many Billings homeowners are doing just that. Recently, I’ve shown a number of homes to my buying clients that could have and should have been repaired prior to listing. I often wonder if these homeowners have any idea how much money they’re leaving on the table with this tactic. Are they wondering why their homes aren’t selling?
Let’s take a look at three reasons you should reconsider putting your home on the market in “as-is” condition.
1. Financial Consequences
Have you ever sold your car or turned it in for a newer model? Did you wash it and clean the interior before putting it up for sale? Sure you did -you knew that to get the most money possible the car had to at least look good. Why would you treat the sale of your home any differently?
Home shoppers today are looking for turn-key properties and the more that they find wrong with yours, the less money they are likely to part with. That is, IF they even bother to place an offer on the home.
There is a very real possibility that it will be more cost effective to make the repairs that will bring in a higher price. Otherwise, be prepared for rock-bottom offers from buyers.
2. Lenders may balk
Many conventional lenders hesitate loaning money on a home that needs substantial work. Items like a roof at the end of its life, necessary pest work and others will bring down the value in the eyes of the appraiser and may even prompt the lender to require the repairs be made as a condition of the loan.
FHA-backed loans, a primary source of loans for first-time homebuyers, require certain repairs be made prior to closing. If you insist on selling the home as-is, FHA loan recipients won’t be among your potential buyers.
3. Buyers may not have the Money
If a buyer has the money to pay for repairs why wouldn’t he or she use that money to buy a home that’s in move -in condition? The fact is, the buyers that will be interested in your home, because it’s priced so low, will be those on tight budgets. This means that they won’t have the disposable income after the purchase to replace your ratty carpet or make needed repairs. Again, you’ve narrowed your buyer pool and, at this point, your home may appeal only to investors. These are the savviest members of the home buying population and you’ll end up selling your home for far less than you imagined.
I get that certain home repairs may be budget busters for some homeowners and there is just no way of getting around selling the home “as-is.” But for those homeowners that can afford even basic cosmetic repairs, I urge you to make them. It is money well-spent.