Question of the Day: Upgrade or Sell As-Is?

by Jennifer Herman Lloyd 02/22/2019

 


Upgrade or sell "As-Is"? That is a loaded question and one that many people have. If spending money to make money on your property seems counter-intuitive, you might attempt to sell your home “As-Is” and keep your money for the new place. We've all watched those Renovation Reality shows and most of those homes which are featured are in way worse condition than yours (and those buyers intended to gut the place for a complete makeover anyway!).

I always advise my Sellers to just keep in mind that the offers you receive will reflect the needs of the buyer, so you typically won’t get top dollar unless the property is in an extremely desirable area. If your situation is difficult or you're strapped for cash, it might make sense for you to sell "As-Is" or at a discount. That being said, be aware that selling a home that isn't up to code not only reduces your buying pool, but FHA & VA loans require a home to meet minimum property standards inorder to secure the loan.

Another consideration is how much you still owe on the property. In the long run, it is probably worth spending some money to bring your property up to code, an exception to this would be if the investment for repairs and upgrades is more than your remaining mortgage. 

So, Who buys "As-Is"?
Investors often purchase "As-Is", "TLC", and "Fixer-Upper" properties intending to “flip” them; that is, to renovate a distressed property and quickly resell it to recoup expenses and make a profit. Typically, investors want the “bones” of the property to be sound, so foundation and structural issues are less appealing to them.

Another type of investor wants the property for its proximity to business or industry. Their goal is to have the property rezoned for commercial purposes or to build multi-family structures on it instead. If the area around your home is transitioning to commercial or multi-family dwellings.

Less common is the buyer that wants a project or fixer-upper on which to put their own stamp. Some fixer-uppers buy for nostalgia (they lived in the home/area as a child) and others for what they know the area can become. Their goal is to restore the home to its former glory while adding newer amenities. Unlike flippers, these buyers often intend to live in the home while working on it, or once the work is complete.

Ready to determine whether selling "As-Is" is the best option for your situation? Let's talk! I can help you understand what to expect for offers with your home in its current condition, plus set a fair asking price based on its location and market trends in your area. With 23 years of experience, depending on what you decide works best for you after we review your options, I can market your home properly to those buyers looking to renovate, investors looking to flip, OR assist you in prioritizing your repairs that are necessary to get it SOLD!  Contact me at [email protected] or 267-446-0667. Buy, Sell, New Construction, or Investment, I can help! It's ALL about Real Estate with Integrity AND HEART! Let's GO! ~ Jen

About the Author

Author
Jennifer Herman Lloyd

“Real Estate is not only in my blood, it’s my passion!” ~ As a third generation Realtor, who has been a licensed and active local agent since 1996, I am available to address all of your Real Estate needs. My philosophy is that there’s so much more to Real Estate than just the sale. Real Estate is about Building Relationships…these are strong and lasting relationships with my clients, my fellow agents, and my community. Never a "one-size-fits-all" mentality, I offer a customized approach for each individual client. I am passionate about all facets of Real Estate and believe in the importance of providing my clients with first-class service which includes a high level of professionalism, along with superior negotiating skills, service, and expertise. Having been a Premier Agent with local Home Builders including The David Cutler Group and Guidi Homes, I provide over 16 years of New Construction knowledge & experience. Selling all price ranges and specializing in new construction & resales in Montgomery, Bucks, Delaware, and Chester counties, I believe in the importance of conducting my real estate business with both Integrity AND Heart. As an alumni of Germantown Academy, I continue to be an active member of my alma mater. I currently reside in Lower Gwynedd with my husband of 20+ years and our two daughters.

I LOVE WHAT I DO!! It’s not just Selling Homes, it’s BUILDING Relationships with INTEGRITY AND HEART… and I look forward to working with you!