When The Cost of Repairs is “Too Much”
Even if you have the money to repair your home, is it always a good idea to move forward with repairs?
Not unless you plan on keeping it for a while. It’s almost always a better idea financially to discount your home and let the new buyer spend the money on fixing it over time. After all, the new buyer will presumably stay for a while – something you’re not planning on doing if you’re thinking about making repairs in order to sell your home.
Let’s say your kitchen and textures are woefully out of date. You’ll make more money on the sale by discounting the price and letting the new owner take care of it.
The exception to the rule
The exception to this rule is when you have to make the repairs in order to pass the inspections the new buyer’s mortgage lender requires, like when they’re getting an FHA loan. Depending on what your house needs repaired, your buyer may not be able to secure a mortgage until the work has been performed.
If your house needs extensive repairs, and you can’t afford to do them, you’re generally stuck looking for a cash buyer, someone who has the available capital to buy your house without securing a mortgage.
Repair costs that spiral out of control
Foundations are one of the worst – they can cost up to $30,000 just to repair. The good news is there are great methods for repairing foundations. The bad news is there’s almost no way you’ll be able to do it yourself. The best method going for foundation repair employs the use of hydraulic push piers. This method is widely accepted in certain parts of the country as an inevitability, especially in places where the soil is notoriously unstable.
Roofs can get very expensive, too. And they’re necessary repairs because ignoring them can lead to extensive water damage inside a house. The cost for a full roof can easily exceed $10,000.
What if you don’t have the money?
That’s what we’re here for. If your home needs extensive repairs, and you don’t have the money to do them before you sell, you may want to give us a call to see what your house is worth in “as is” condition. Our fair offer might even surprise you, especially if you’re looking at performing repairs that run into the tens of thousands of dollars before you sell your home.