As of March of 2022, the average number of days a home is listed on the market before selling was only 38 days. If you are trying to sell an old house that needs work, then statistics show that your home may be on the market for a significantly longer period of time.
How to Sell an Old House
If you’re hoping to avoid your house sitting on the market for months on end because it’s old and not in the best repair, then you need to make some decisions up front to speed up the selling process. First you need to decide if you want to go with a realtor or work with an investor to sell your home.
Realtors will help you identify repairs that may be needed on your home and make suggestions as to how to make your home more appealing to potential buyers. Investors, on the other hand, will purchase your home as-is and though the selling price is usually lower they won’t require you to take on any expensive repairs or updating.
Working With a Realtor, Pros and Cons
Pros
Real Estate agents are able to negotiate terms and conditions on your behalf and they take care of all the contracts so you don’t have to.
Realtors provide their expertise in preparing your home for sale. They can help you identify where to make changes and updates that could help your home sell more quickly.
Realtors can do the work of listing your home and taking pictures and advertising your home for you.
Cons
Realtors take a commission of the home sale, with the average real estate commission in Utah being between 4.6% and 6.12% of the sale price.
You often have to commit to a contract with a realtor. This means you can’t decide to sell on your own or sell to an investor without a realtor involved if you signed a contract.
You will need to do some work to prepare your home for sale and be ready to vacate the property for showings and open houses.
Working with an Investor, Pros and Cons
Pros
Investors can make cash offers and close quickly. Depending on your situation cashing out and closing soon could save your credit and get you out of a bad financial situation quickly.
Investors usually buy your home as-is — no expensive repairs, cleaning or updating needed.
Investors are flexible. They aren’t planning on moving in to your house so they can be flexible with the terms and tailor their offer to you.
Investors are private buyers who are well versed in contracts and legal processes, you’ll get the benefits of working with an experienced home buyer without the fees of involving a realtor.
Cons
Depending on how much money you need to make from the sale of the home an investor might not offer what you need. They are purchasing the home as-is and will do all the fixing and updating needed to sell the home for a profit so they make a fair cash offer that may or may not be enough in your situation.
Which Option is Right for You?
When looking at the pros and cons between realtors and investors it can still be hard to know what is the best option for you to sell your older home that needs repair. Start by asking yourself: How much work does your house really need? If your home needs any of these costly repairs then you’ll scare off a lot of traditional home buyers unless you have the cash to make the repairs before listing:
HVAC Repairs – $100-$1,100
Water Heater Repairs- $100-$1,400
Electric Replacements- $125-$3,000
Driveway Repairs- $300-$4,500
Roof Repairs- $150-$5,000
Deck Repairs- $250-$5,000
Mold Removal- $400-$6,000
Foundation Repairs- $500-$12,000
Siding Repairs- $100-$16,000
Smaller repairs such as updating a bathroom or painting the walls are not as costly and will make it easier to list your old home quickly and for a good price.
Can You Afford to Make Repairs on Your Old Home?
Some repairs like the ones listed above will cost you thousands of dollars up front, and may not translate into thousands of dollars more in profit when you sell your house. Calculating the return on investment is another important step before making repairs on your old home.
A roof in poor condition is worthwhile to repair before selling, according to the National Association of Realtors, a new roof promises an average ROI of 107% of your cost as the homeowner. A brand new roof means the new owners won’t have to worry about the expense and headache for 25-30 years and people are willing to pay more for that kind of peace of mind.
Brand new flooring, whether it is updating old carpet, refinishing the hardwood floors or putting down new floors shows a good return of investment. According to the same report from the National Association of Realtors, new flooring returns 106% of the investment.
Finally, the only other repair that shows an extremely high ROI is your HVAC system. If the system is old or needs repair or replacing then 85% of that cost is shown to be recouped in the sale of your home.
Other updates, such as renovating your kitchen or bathroom, will make your home look good in photos but do not promise a high return on investment so you’ll be out the cash you put into the project.
Selling Your Old Home As-Is
If you don’t have the cash to make major repairs or updates to your home then selling to a real estate investor may be your best option. You’ll save thousands of dollars up front that would have gone towards repairs and then save time and stress by closing on your home in a week for a cash offer. Skip the fees, time and money of working with a realtor to sell your older home and work directly with a trusted investor like Gary with Gary Buys Houses.
Gary will give you a custom cash offer that will allow you to close on the property in as little as a week. No more waiting, renovating and hoping for a good ROI for those expensive repairs, contact Gary to see how he can help you today.