Ideally, selling a house that needs repairs in Utah should be a relatively stress-free experience, even without a realtor. In an ideal world, you’d be able to command the right price from the right seller at the right time. Maybe you’ve already done your research. You know your neighborhood is up and coming and the demand is high. But take a closer look at which homes have sold in your neighborhood. Now take a look at yours.
Have you noticed anything different? You might have. Those “other” sellers have spent thousands of dollars on renovations and repairs. But have you?
Maybe you don’t think your home is that much of an eyesore. Maybe it could use a little TLC, but nothing fancy. You say…Isn’t it a buyer’s responsibility to repair their new home? Shouldn’t you just be able to sell your home as is—at a price which works best for the both of you?
That’s usually not going to be the case. It’s not just location a buyer takes into consideration. Or market value. The cost to repair a home is just as relevant to their decision as the asking price. And if you’re asking for the going price on a home that needs considerable repair, you may find it on the market for longer than you think. A lot longer.
Most people want to buy your home to live in it. They do not have the money to make the repairs, and the mortgage companies will not include the repairs in the new mortgage for a house buyer.
How Much Does It Cost To Repair My Home?
It’s been estimated that the average American can spend close to $5,000 on home repairs in an average year. In fact, many contractors suggest what’s known as a “one percent rule” when it comes to repairs: that each year, homeowners should spend approximately one percent of a home’s value on maintenance. Keep in mind that the average home in Utah sells for approximately $325,000. That’s $3,250 the average Utahn should be spending on repairs and maintenance. Each year.
That’s just for standard upkeep and maintenance. Want to see what some of the national figures look like for a home in need of repair?
- Exterior Paint: Up to $10,000
- Floor Refinishing: Up to $7,500
- Foundation Repair: $30,000 and up
- HVAC Installation and Repair: $10,000 and up
- Interior Paint: Up to $5,000
- Roof Repair: Up to $10,000
With those sort of numbers, no one can blame you for trying to sell a home fast for cash and avoid all the hassle.
Is There A Market For Homes In Need Of Repair?
Believe it or not, there actually is a big market for fixer-upper homes. As is the case with pretty much anything worthwhile in life, it requires a lot of work.
Much of the problem comes from finding a buyer willing to put the time and effort into purchasing a home in need of repair. Let’s assume your home value is worth approximately $300,000, but it’s in need of both an outside paint job and a new roof. Using the averages given above, you can try to list it in the range of $275,000 – $280,000. But there’s still the time and effort that goes into restoration you need to consider. Few buyers are going to consider what could potentially be several months worth of painstaking labor and inconvenience just to save $25,000 off closing costs—especially if they’re going to adhere to the one percent rule and pay an additional $15,000 in maintenance costs over the next five years.
But let’s also assume your house isn’t in drastic need of repairs. Perhaps a quick coat of paint to a room or two. Or a new kitchen counter. You may be able to command at or near the asking price for simple cosmetic restoration, particularly if your house is in an up and coming neighborhood. But how can you be absolutely certain the necessary repairs are going to be simply cosmetic? Remember that both appraisals and home inspection services are likely going to be required from a lender. And if your house is more than ten years old, you simply aren’t going to be certain just what they’ll uncover.
What If I Need To Sell My Home Immediately?
If you don’t have the time or patience to wait for a qualified buyer, there’s plenty of reputable house buying companies to turn to, regardless of the condition of your home. Sadly, there’s also a number of less than savory companies who can take advantage of your circumstances. More often than not, these are one person operations who have neither a background in real estate nor home restoration. They’ll simply give you a quote, ask for a fee upfront and… disappear.
Don’t be taken in by fly by night home buying companies. Work with a home buyer in Utah you can trust. At Gary Buys Houses, we don’t just buy homes regardless of their condition. We work with homeowners to ensure all their needs are met. Our “Sell Now, Move Later” program is a great example.If you need to sell your home immediately but haven’t found a new location yet, we’ll purchase your home as is. You can take as little or as long you need to relocate. We can even offer you the chance to purchase your home back at a later date.
It may be difficult to sell a home in need of repairs quickly, but that doesn’t mean it’s impossible. You just have to rely on luck as much as strategy. Here’s hoping you have the best of both.