Home Selling in 60426>Question Details

Sandra, Home Seller in Harvey, IL

Is it better to fix up a house for sale or give the buyer money to repair a house and sell it as is?

Asked by Sandra, Harvey, IL Mon Oct 22, 2007

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16
Jim Walker’s answer
On the other hand....

Funny, in my past 15 years, Most (over half ) would be buyers that approached me suggested they would like to look at Fixers and Repos. - This was becasue of their perception that they will save money by doing so.
If your area is typical, then you are competing with Fixers and Repos, - you will have to price your home competitively with them just for your house to be seen. - Then your house has to be in better condition than the repo or fixer (or cheaper), for it to produce an offer.

You should take care of Debris Removal, cleaning, and inexpensive fixes. - Appliances that are not repairable should be removed as debris.

If you have a median value house or below, it is usually better to do the above light fixes, and save your major repair money to lower the asking price. --

On the third hand...... if you already have an existing offer, and the buyer asked for the repairs, you may be better off just doing the repairs... if the existing buyer has already made it clear that they want the repairs and are willing to pay the list price.
2 votes Thank Flag Link Mon Oct 22, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Making the homes as competitive as possible, i.e. doing the fixing up that is required is a very big plus when it comes to impressing the buyers of today's market.

Thoughts:
1. If your home is in a neighborhood that is known for rental units you probably do not have to fix anything up to sale the home.
2. If your home is in a neighborhood where the majority is owner occupy, you will need to fix the home up as the new owners will desire a turn key property.

Best of Luck,

Josh Barnett, Realtor
Metro First Realty
Web Reference: http://www.SoldOKC.com
0 votes Thank Flag Link Sun Dec 9, 2012
I think you can do both. Fix some of the major things that may need repair. A repair credit an be given for minor cosmetic items. The home should be priced comparable or better than the competition on the maket. Price it well and let potential buyers know you are willing to give a repair credit for cosmetics.
0 votes Thank Flag Link Sun Dec 9, 2012
I'M LOOKING FOR A FIX-UP HOUSE TO BUY
0 votes Thank Flag Link Tue Apr 7, 2009
Mixed emotions on this question, as a listing agent if I see something that needs to be repaired, I let my sellers know to fix it (that broken interior door won't cost as much as a buyer thinks it will). On the other hand if the look is just dated, I wouldn't fix it up, but would consider the remodel value when pricing the home. If you do decide to fix up the home, keep it neutral. I have seen sellers who over personalized their remodels and the buyers just didn't like their choices. What sells homes? Location, Price and condition. The three have to make sense for buyers to want to purchase a home. Have your Realtor show you the comparables in your price range that you have selected. How does it compare?
Web Reference: http://www.janmcnulty.com
0 votes Thank Flag Link Wed Oct 24, 2007
It usually pays to fix it. It really depends on your area though.

If you have a home that needs work, but you live in an area where teardowns are occuring you may be better of selling as is (the value will be in your lot anyway.

I would check w/ a local Realtor & find out what the trend is in your area.
0 votes Thank Flag Link Wed Oct 24, 2007
This depends upon the market where you are selling. i.e. In one area, we sell to a lot of NYC commuters who have little interest or time in fixing or repairing. Our market for fixers might be limited to builders or investors. Travel 15 miles away and we have a different typical buyer demand.

Speak w/ your Realtor about what buyers are demanding in your specific neighborhood. Local, at a micro level will be an important guide for the best decision.
0 votes Thank Flag Link Tue Oct 23, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
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Hi Sandra, this question would depend on what needs to be fixed. I would fix it as it will sell quickly and for top dollar.
0 votes Thank Flag Link Tue Oct 23, 2007
In today's market it needs to be a cut above the rest in condition. If you do have the budget to make some change, there are plenty of low cost repairs that can add up big when it comes to selling your house. However, if you make considerable changes, I wouldn't expect to earn those renovation expenses back dollar for dollar in the sales price. It is unbelievably important to have it priced right from the start.
It will probably get shown if you do not make the changes IF the home is priced accordingly. Basically, buyers will accept big chunks in reduced pricing to fix it up themselves. For every imperfection visible to their eye, start subtracting, because they will. It won't get shown if it's priced near the non-fixer-uppers in the current condition because those searchers will gravitate towards the one in best condition. Again, if it's drastically reduced in price and in the range of other fixer-uppers (but in slightly better condition) you will do better but at the cost of a slash of your would be sales price.
Web Reference: http://homenashvilletn.com
0 votes Thank Flag Link Mon Oct 22, 2007
I have to agree with the consensus. People want move-in -ready. More interested eyeballs = more offers= higher price!
0 votes Thank Flag Link Mon Oct 22, 2007
Sandra,
The majority of buyers like homes in move in condition. I have a lot of buyers that come to me wanting to look at "fixer uppers' then after going through a few ask to see nicer homes. Most people don't have the time or knowledge to fix up a home so you miss a lot of the potential buyers. The ones that do are looking for bargains and they offer much less then asking price.
Michael
0 votes Thank Flag Link Mon Oct 22, 2007
Sandra
NAR (National Association of Realtors) surveys indicate that home buyers prefer homes that are "move in ready". That doesn't mean that you have to fix it up, however you'll probably net more if you do.

In other words the amount that you give an allowance is more than it would cost to do it yourself. Also, listing time (Days On Market) will be longer, so you will net less.
0 votes Thank Flag Link Mon Oct 22, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
As a Professional Home Stager, with lots of sold homes under my belt, it has been my experience that some of the most important things you can do to sell you home are to declutter (have all of the shelves, closets & cabinets only 50% full) and make sure your house is sparkling clean regardless of any other factors. Make sure the yard is, at the very least, clean and neat paying particular attention to the front yard and the entry area. Paint or refinish your front door and the molding around the door, as this is the first part of your home potential buyers will get up close and personal with. The first thing I would spend money on would be to give the house a fresh coat of paint, interior first and then if you can afford it, do the exterior. Restoration Hardware has a wonderful palette of very pleasing colors. You can have those colors matched at your local paint store or Home Depot type store to save money. Once all that is done, I suggest you hire a professional Home Stager to work with you to rearrange your furnishings for the most advantageous layout. A good Professional Home Stager can look at your home with "buyer's eyes" and help you to remediate any trouble spots and play up your home's positive points.
Even if you are selling your home "as is" you still want potential buyers to fall in love with your home as soon as they walk in the door. They can't do that if the home is messy, disorganized or has obvious maintenence problems.
0 votes Thank Flag Link Mon Oct 22, 2007
think it completely depends on where it is located & what is the best use for the property. If you have the funds and the time to deal with it, wat are the comps in the areas etc.. It is a very subjective question...
You would be best served by speaking with a local Realtor.
If you're in the Bergen County Area I could help...201-446-6363
Web Reference: http://www.bparkes.com
0 votes Thank Flag Link Mon Oct 22, 2007
Usually better to fix it up. Start with the kitchen and bathrooms. Landscaping in the front of the home is very important...that first impression counts everytime.
Web Reference: http://www.iansellsnola.com
0 votes Thank Flag Link Mon Oct 22, 2007
In this market it is better to fix it up. That is if you can do it without investing a lot of money in to it. Is it a matter of decluttering, painting, sprucing up or is it major updating that needs to be done? If that is the case and you want to sell as is ,then that will need to be reflected in the asking price. The price will need to be much lower selling as.
Web Reference: http://www.northropteam.com
0 votes Thank Flag Link Mon Oct 22, 2007
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