Selling a Home That Needs Repairs

When homeowners meet with The Boehmer Team about listing a St. Louis or St. Charles County, Missouri home for sale, they want to know what needs to be done to best prepare their home for market. Homeowners particularly want to know what they must fix, repair or update to sell a home for the most value versus the effect of holding off on any repairs. The answer depends on how fast the homeowners need to sell, how much budget they have for repairs, and how much they are hoping to net from the sale. Here we’ll explain three ways that homeowners handle selling a home that needs some repairs. 

Selling A Home Without Repairs At A Discount

Homeowners needing to sell a home quickly without investing any time or money into the home may decide to skip repairs and sell their home at a discounted price. Why the discount? In order for a home listed for sale that is in need of repairs to compete with other similar homes for sale in the area, the home must be priced at a discount compared to the price of the other homes. Otherwise buyers will simply buy the other homes and the home in need of repairs will linger on the market.

In addition to a lower sale price, homes in need of repair are often referred to as “as is” listings. When a home is listed “as is” it alerts potential buyers that there will be no negotiating for home repairs during the sale process and that what they see is what they get for the price the home is listed. This eliminates confusion and even entices investors and handy homebuyers who are looking for a good deal on a home. But it also could mean that the home takes longer to sell while waiting for the perfect handyman buyer unless it is deeply discounted compared to the competition.

Selling With Some Repairs Negotiated During The Home Sale Process

Homeowners that want to net more money from their home sale that have a little time and money to make some repairs to their home have the option to make some repairs and negotiate additional fixes during the home sale negotiation process. In this case we recommend making any fixes that would affect a homebuyer’s ability to gain an occupancy permit for the home.  Items needed for occupancy include working plumbing, heating, electrical and sound structure among others.

For example, does the home need a new roof but there isn’t enough money to replace it? The price of a new roof could be negotiated in the sale process by offering to lower the final sale price to accommodate for the price of a new roof. This type of negotiating could be done for almost any major repair. But homeowners need to keep in mind that homebuyers will usually choose to purchase a home that needs less of their time and effort to move into. 

Also, some loans, like VA loans for veterans, will not cover the purchase of a home where the roof doesn’t meet certain requirements. Loan requirements, time commitments for repairs, and the amount of savings a homebuyer has to make immediate repairs on a home purchase could diminish the pool of potential homebuyers for a home that needs a major repair.

Selling For Most Value With All Repairs Completed

Homeowners wanting to net the most value from their home sale will want to make their home for sale the best option for any buyer looking in their area by completing all repairs to their home before listing the home for sale. Homebuyers love move-in ready homes that don’t need any additional repairs and are willing to pay premium prices for the quality and convenience. 

Really want to make your home for sale stand out? In addition to making sure all repairs are made to the home, implement home staging to make the home’s best features stand out and to make it most appealing to buyers when compared to other homes. Home staging could include landscaping maintenance, deep cleaning, new paint, removing clutter, removing or changing window treatments, removing extra furniture, or updating fixtures. For more information on staging a home for sale check out our article Advice From Award Winning Home Stagers.

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If you are considering selling a home in the St. Louis or St. Charles County area of Missouri, contact The Boehmer Team to setup an interview. We can give expert advice as to what you can do to make the most from your home sale. We have a list of trusted contractors and repairmen that we can recommend to help with any home repairs. Are you also buying a new home in addition to selling your current one? Our experienced buyers’ agents are truly effective at helping homebuyers navigate the current market conditions. Learn more about us at www.TheBoehmerTeam.com.