Q: What’s a home seller to do when he wants to sell a house but it needs repair?
A: Home sellers who have structures in need of substantial repairs can find a buyer’s market to be their worst enemy. When a housing market favors buyers, buyers want to truly have their pick of inventory. Buyers can find great deals on homes that are in pristine condition.
Most buyers don’t want to be bothered with fixer-uppers, especially when they can see many homes that are in move-in condition for the same price. Also, distressed properties such as short sales and foreclosures are commanding a significant amount of attention from buyers.
A seller will most likely net more money from a property sale by completing repairs and placing the home on the market in good condition. A buyer takes a look at the condition of the property and assesses the repairs needed. Then, an estimate typically is
doubled to ensure room for any surprises. In other words, a need for repair will substantially reduce the offer price below the estimated cost of repairs.