In many areas, homes that have been recently updated or renovated are flying off the market, often at a nice profit for the sellers. But what about a fixer-upper—a home that you list “as-is”? There are pros and cons to this approach. You save the money you would spend on major repairs or upgrades—and the home could sell fast, since “as-is” properties typically attract flippers, developers, and investors looking for properties they can turn into single-family rentals. However, you’ll be listing your fixer-upper at a lower price, for a smaller profit, since buyers expect homes sold “as-is” to be below the price of comparable homes that require little work. If you decide to do no repairs and sell “as is,” here’s how to proceed.
Keep It Clean. Have professionals give your home a top-to-bottom deep cleaning. This is often dismissed—if the property is going to be remodeled, why bother? But one study showed homes that underwent a deep cleaning before listing saw a marked increase in resale value.
Do an Inspection. Next, it’s a good idea to do a home inspection before you list. Being upfront and letting buyers know what the home’s potential flaws are can avoid deal-breaking surprises down the line. Remember, disclosing known defects upfront does not obligate you to make repairs if it is clear from the start that such repairs are non-negotiable
Tailor the Marketing. In marketing a fixer-upper, we like to focus on the home’s positives. This could be its location in a highly-desired neighborhood; its proximity to transportation or amenities; or simply its great features, such as mature landscaping or original hardwood floors. About one in three millennials say they’d prefer a fixer-upper, and almost half are willing to do the upgrades themselves. People who want to live in an area whose average home prices are beyond their reach may be looking for “the worst house on the best block.” They seek a low cost of entry to a home whose value they can increase over time.
Should You Make Some Small Repairs? Before you list your home “as-is,” think about spending a modest budget on some repairs. We can advise you on whether small fixes could boost your home’s value without having to put substantial time and money into renovations that may not yield a return. Minor upgrades that can increase the value could be as simple as fresh paint, new flooring, or freshened-up landscaping. Plus, you could make small repairs, such as:
- Patching holes in drywall
- Fixing leaky faucets
- Repairing torn screens
- Replacing worn-out caulk
- Updating older light fixtures
- Decluttering the entire home
