All homeowners who plan on getting rid of their old real estate want to get the most money out of the sale. But what if the house is starting to fall apart? When structural damages are observed inside a home, homeowners are already scratching their heads, knowing it will be challenging to sell it for a good price. But what if you can’t afford to make the necessary repairs? Should you pursue the sale?
The mere thought of a house with structural issues is enough to give homeowners a headache. Rarely will homebuyers be more than willing to buy a home in such a state for a good price. The good news is, you should not let the condition of your home stop you from putting it on the market.
To Sell As-is or Renovate First?
Most property owners are torn between selling the property as-is or let the price flop to entice buyers and sell it for a good amount. To help you decide between the two options, consider your budget, urgency of selling, and the issues at hand.
Check the house for structural damages
First, check the property and list all the structural issues. You might not have extensive knowledge of every possible foundation damage there is. But your mere observation can give you a hint as to how big of an issue you have.
Watch out for the following issues:
- Roof leaks
- Uneven floors
- Cracked flooring
- Separated sidings
- Crumbling concrete
- Sagging floors or roofs
- Signs of mold or mildew
- Long cracks in the paint
- Bowed or cracked walls
- Cracks in ceilings, near windows and door frames
Go for at Least Three Foundation Inspections
Once you know what kind of structural damages your home has, it is time to find reputable licensed contractors to do professional foundation inspection. It is best to go for at least three inspections and ask for their quote. This will give you a rough estimate of how much is needed to pay for fixing the issues.
According to HomeAdvisor, it usually cost homeowners between $1,976 and $6,975 to pay for foundation repairs. This is still dependent on the issues at hand and the severity of the problem. Once you know how much the repair costs will be, you can decide whether you have the budget to renovate and wait for the renovation to finish before selling.
If you think you can afford the repairs, make sure you choose reliable and experienced contractors to get the job done especially if reconstruction is your goal. You want your contractors to have a stellar record and the right equipment. You want them to have the right safety gear, from helmets and face masks to gloves and even safety boots for construction workers if needed.
If there is no way you can afford the necessary repairs, you have the option to tap on your home equity to fund the repairs or skip it altogether.
Selling the House As-is
If you decide to sell the house as-is, be ready to accept your home’s current market value. Work with a real estate agent, and they can help you fairly put a price tag on the house, market it on your behalf, and find buyers interested in buying the property. You will find it easier to sell your home to an investor who can afford the necessary repairs.
The good news is, many people, especially millennials, are interested in fixer-uppers. You have the option to tell the buyer about the structural damages and fix the damage before selling or reduce the selling price to help the buyer pay for the repairs. It all depends on how you will negotiate with the buyer.
One mistake you don’t want to commit doing is lying to potential buyers about the foundation issues you already know. Most mistakes require homeowners to inform potential buyers in writing foundation issues. Your buyer can sue you if you failed to tell them about the property defects, and they had to fix the issue.
Share the home inspection results with your buyers. Don’t simply let them know the home inspection report. Make sure to tell them the estimates of the repair for transparency’s sake.
Be ready for negotiations. Homeowners often think they know the price of their home better than anybody else. But since you are selling it with structural defects, you need to make adjustments and price it strategically so you can finally get rid of your fixer-upper and move on to your new home.
You might want to sell the house at the best price possible. But if you are not willing to fix the structural damages, then it is best to be realistic with your demands. Find the right buyer, be transparent, and negotiate.