For starters, home selling strategies are always going to depend on local market factors. Although the inventory of homes for sale is currently low across the country, your local market could be considerably different. As a rule of thumb when listing a home for sale, sellers should try and make the property look as desirable as possible. After all, most home buyers do not have a desire to purchase a property and begin a costly and time-consuming remodeling project. With this said, there are instances where selling your home “As-Is” may make more sense.
Reasons for selling As-Is
In many cases, sellers opt for taking out home-equity lines of credit in order to overhaul a home prior to listing it. However, it is important to remember that you typically do not recoup every dollar spent on this overhaul at the time of sale. Below are some reasons for opting not to embark on a total overhaul.
- Save money & time: Home remodeling can be quite an expensive endeavor, particularly with the recently rising prices of materials. In addition to not recovering all of this investment at the time of sale, you could also delay the time that it takes to ultimately list your home for sale. Depending on the time of year, this can present challenges due to less buyer demand during certain times of the year.
- You are able to price your home aggressively: As expected, investing in a home remodel will ultimately lead to a higher listing price. By selling your home “As-Is”, you will have more flexibility in pricing your home to sell quickly. If your local market has a lot of real estate investors that typically flip properties, this may be a good strategy.
- Give buyers the opportunity to customize the home to their needs: Whether or not you choose to remodel a home prior to selling it, there is a good chance that the buyer will make changes upon taking ownership anyways. Although most buyers struggle with having a vision for overhauling a home, some will truly appreciate the blank canvas to work with.
- Appeal to cash buyer investors: As mentioned previously, many real estate investors and investment companies are looking for homes that they can remodel and sell at a higher price. Also known as house flipping, these investors specifically target homes that may be obtained at a lower price. Once again, it will depend on your local market and whether there are many home investors like this.
In closing, the goal of this article is not to dissuade home sellers from preparing their homes for a sale. After all, you don’t get a second chance to make a first impression. Furthermore, it is important to remember that most home buyers are looking to purchase a home as their primary residence and may not have the ability or desire to embark on a home remodel.
With this said, there are instances where it may be appropriate to simply focus on the basics of preparing your home for sale. Items such as removing clutter from the home and having it cleaned can go a long way during home showings. Of course, never underestimate what a fresh coat of paint can do for a home’s overall appearance as well. As always, it is best to consult with your local real estate agent on the best approach for your personal situation. If you are in South Florida, our Live South Florida Realty, Inc. team has local and knowledgeable agents located from Port Saint Lucie to Miami. Feel free to contact us should you need any assistance.
At Live South Florida Realty, Inc. we have assisted many clients build their real estate investment portfolios. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!