One of the most common questions we hear is whether an owner should fix the house before selling. The answer is not automatically yes or no. The right question is whether the money, time and risk of the repairs are likely to create a better net result.
After more than 500 real estate transactions, we have seen sellers make smart repairs that paid off, while sellers spend heavily on improvements that a buyer later changed anyway.
Repairs that can sometimes make sense
When the home is basically sound, relatively small improvements can help. Fresh paint, flooring, basic landscaping or correcting a visible maintenance issue may improve presentation without turning the property into a major project.
Repairs that can become expensive quickly
Roof replacement, HVAC, foundation work, electrical panels, sewer or plumbing problems, pool repairs, fire damage and major water damage can change the economics of the sale. These projects can also uncover additional work once they start.
Do not compare your repair cost to the future list price
That is one of the biggest mistakes we see. If a repaired home might list for $400,000 and an as-is buyer offers $340,000, it may look like there is a $60,000 gap. But the real comparison has to subtract repairs, commissions, concessions, closing costs, carrying costs and the risk that the retail buyer asks for additional repairs after inspection.
Consider your time and tolerance for the project
Some owners have the cash, contacts and time to manage a renovation. Others are dealing with an inherited property, relocation, tenants or another major life event and simply do not want another project.
Get both numbers before you start
Before committing to a large renovation, get a realistic opinion of the home’s retail value in repaired condition and a realistic as-is offer. That gives you something concrete to compare.
Our full guide to selling a house as-is in Arizona explains how we think about repairs, cleanout and net proceeds. You can also request a cash offer from Shrubby without repairing the property first.
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