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.
