Home Selling in Bensalem>Question Details

kayellash, Home Seller in Bensalem, PA

Preparing to sell and unsure whether to complete EXTENSIVE upgrades required or sell as is

Asked by kayellash, Bensalem, PA Tue Sep 25, 2012

House was built in 1974, original kitchen and baths, water damage on exterior wall, need new windows, carpets, and paint - possibly a roof. Should we sell as is or are upgrades worth the cost which I estimate to easily be more than $50-$75K, especially if we remodel the kitchen.

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Hi, what you need to look at is the other home values and condition in the area. It sounds like you need to do a lot of work to bring the home up to value. You have to see where you will be able to price the home if you invest the money in upgrades. Depending on the condition of your market you may not realize the return if the values are low to begin with. Have your agent work on this with you....

Chris
0 votes Thank Flag Link Thu Oct 18, 2012
Investors will look at your home like this:

1. What is the actual sale price they will get AFTER all the repairs are made? (As Repaired Value - ARV)

2. Take 80% of that (to leave a profit).

3. Deduct the cost of repairs.

4. Deduct the cost of holding the home while repairs are being made - including insurance, taxes, utilities, security, HOA fees,

5. Deduct eventual selling costs.

What is remaining is what they will offer you for your home as a fixer-upper. If you can afford the repairs, START with the ARV and determine if it is worth the hassle. IF you do the repairs right, and bring the home up to better condition than 2/3 of the neighbors (but not over-improved for the neighborhood), then you get to keep that 20% profit for yourself.

Here is a link to the best book available on the subject: http://www.kellerink.com/products/flip-how-find-fix-and-sell…


Good luck,

Doc Stephens, REALTOR
0 votes Thank Flag Link Thu Oct 18, 2012
If you have the money, the NECESSARY repairs should be done, as potential buyers will "charge" you more for them than a contractor would. A coat of paint is also inexpensive and goes a long way toward the mental state of potential buyers. Kitchen renovation is a different story. It can VERY OFTEN provide a big return on investment, but it can also be a bust. As suggested by the other responders...a local agent with "eyes on" will be of great benefit to you. Best of luck...
0 votes Thank Flag Link Thu Oct 18, 2012
There are some things that need to be done. The roof and water damage have to be addressed as if it takes long to sell your home there will be further damage. You may have to make sure there is no mold. The single most important factor that can affect the sale of your home is mold damage.
0 votes Thank Flag Link Thu Oct 18, 2012
The best thing to do is have a Realtor meet you at your house, and let them walk through. They can do a CMA and give you basically two potential sale prices - one with the repairs, and one without. Of course, the one without the repairs will be significantly less, but the real issue will be looking for the right buyer. Depending on the extent of the needed repairs, it may be hard for a potential buyer to obtain a mortgage for your home, and since most buyers will need a mortgage, it is usually best to make the repairs now. Your house will sell faster because there will be a larger pool of buyers able to consider it.

Please feel free to call me if you have any questions.

Loretta Leibert, Realtor, GRI
Prudential Landis Homesale Services
Fine Homes International Specialist
Office: 610-372-3200 ext. 3049
Cell: 610-488-7482
Cell/Text: 215-514-4872
E-mail: lorettaleibert@comcast.net
Website: http://www.lorettaleibert.com
0 votes Thank Flag Link Wed Oct 10, 2012
I suggest you contact a realtor and have them come out and do a CMA. They will be able to tell you what homes are selling for in the area and what yours in "as Is" condition is worth. From there I would suggest you go by the numbers if you can get $100k extra by doing $75K in work do it. If you get $25K back then it isn't worth it.

I do this all the time for people and would be happy to help you out. Give me a call at: 717-858-2075 or email me at: AnnaDomzalski@kw.com
0 votes Thank Flag Link Wed Oct 3, 2012
Kaye,
It really depends on a number of factors. If you were my client, we’d look at the market for homes “as is” and updated. We’d analyze the cost of doing basic updates, the time it would take, your available resources to accomplish the work and your timing. Based on all the information we’d map out a plan.
If the real market return would be less than the cost of updates, and you had the time and resources, it would make sense to do them. If it looked like a break even or money loser, it would be obvious to just get the house on the market and hope the right buyer comes along. If you don’t do the updates, it critical to prepare your marketing to the right audience. A buyer looking for a move-in ready home is not your target. Cosmetic fixer, build instant equity, make your own choices for color & finishes are some suggestions.
0 votes Thank Flag Link Tue Sep 25, 2012
This kind of answer is difficult. It is something that needs to be viewed first. I work with three different investment groups that flip homes. My job for them is to preview the homes and list the approximate repairs/cost. I cando this for you....do comps and help you make a logical decision.

Get back to me with your schedule so we can meet and discuss this further at the property.

Debbie Confer
HomeStarr Realty
3333 Street Rd
Greenwood Sq #1, Suite 235
Bensalem Pa 19020
office: 215-355-5565
cell: 267-688-5368
debra.confer@yahoo.com
0 votes Thank Flag Link Tue Sep 25, 2012
Kayellash,

Every situation is different. Sometimes it makes sense to do the repairs/upgrades, and sometimes it doesn't. We actually specialize in this type of situation. I work very closely with a Contractor who does renovations for my clients and for my own properties. I start by doing a very detailed written analysis of your home which will include the "as-Is" value, fully renovated value, and if applicable, the market value with just some of the renovations done. The report will also include the cost of the renovations and we can even help you with financing the work.

I have had clients who befitted greatly from doing renovations prior to going on the market, but there are situations where you will not get the money back out of the home. I would be happy to give you a free evaluation to see which way is best for you. Feel free to call, text, or email me anytime

Sincerely,

Bud Silcox
Keller Williams Real Estate
(215) 757-6100 Ext 175
(215) 813-6828 Preferred
Bud@SilcoxTeam.com
http://www.FindBensalemHomes.com
0 votes Thank Flag Link Tue Sep 25, 2012
kayellash,

Any experienced agent should be able to give you a good idea of what a "sale in current condition" versus a sale after improvements would net you. That would let you be in control of how much you want / need to do in repairs and upgrades (if any), and give you a good idea of where you stand..

In many cases, upgrades like kitchen , bath etc do add value - no question about it. Repairs of damage / worn out systems etc are not considered "upgrades", however something like new roof and other systems do add value (and are expected by most buyers).

What I like to do is: Sit down with a potential clients and go over values of similar homes in both "categories" - both updated and not updated / as/is , needing work etc. That way my client can decide which route to take. (In fact, I'm working with a client right now about a mile from Bensalem in the exact same situation).

I've done work in / and am familiar with Bensalem and I'd be glad to help.

Brian Luce ABR, SRS
Weidel Realtors
215-348-5600 Office
609-225-4630 Cell
http://activerain.com/brianluce
(or use the trulia contact button to contact me anytime).
0 votes Thank Flag Link Tue Sep 25, 2012
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