Or Sell It to a Company That Buys Houses?
One of the most common questions homebuyers ask themselves after they’ve been in their homes for a few years is “Should I fix my house, or sell it to one of the companies that buy houses?”
Obviously The Denver Home Buyer cannot answer this tough question for you.
But since it’s one of the most commonly asked questions we get, we’re happy to give you a bit of insight into our thinking on this topic.
- First of all, you need to make an honest assessment of the condition of your home. This is probably the most important factor to take into account when you’re considering whether you should fix your home. What is the nature and extent of the damage? Do you have the time, skills and interest to make these repairs yourself? Do you have the liquid cash to pay a contractor to make the repairs. Remember, some repairs are simply so complex and difficult that it requires a professional to complete them.
- Secondly, you should take into account your dreams, goals, and plans for the next few months and years of your life. Undertaking home repairs can be a costly and time-consuming measure. Are you considering these repairs in order to sell the home, or so that it is more livable for yourself and your family, long-term?
If your goal is to sell the house, you may be better off simply selling the home as is. Many home repairs turn out to be much more complex than they seem at first.
If you’ve ever undertaken a DIY home improvement project, you know that even seemingly simple projects can quickly turn into something beyond the abilities of typical homeowners as soon as you climb into the attic or tear into a wall.
- What’s the condition of the other homes in your market? Is your home in better, worse, or equivalent condition to competing inventory in your area? If your home is in better condition than other homes in your market, you may be better off selling the place as is, rather than attempting to fix your house. That’s because these other homes are acting as a stone around the ankles of the local market. In other words, these homes in ill repair are holding down the value of your home, meaning that any repairs you make are unlikely to yield a worthwhile ROI (Return On Investment).
If your home is in worse condition than the other homes in the market, you still may want to sell it as is to one of the companies that buy houses anyway, because it will take a larger investment for you to bring your home up to the standards of the local market.
- So the question still comes down to ROI, only in this case, it’s the initial investment that is too high, as opposed to the ultimate return being too low.
If your house is roughly equivalent to the other inventory in the local market, then you should consider answering yes to the question of whether you should fix your home.
- How is the resale market in your area doing? This is the type of question that may need a professional to answer. But remember, most of these professionals will have some stake in the advice they’re going to give you.
But keep this in mind: in Denver and the surrounding areas, most homeowners today are not interested in purchasing a “fixer-upper.” The new people flowing into our state are either young and drawn by the legalization of marijuana, or tech professionals. In both cases, new residents are looking for a place that’s move-in-ready.
Selling your home as-is to a company that buys houses means that you don’t have to worry about code compliance or inspections. You won’t have to deal with contractor disputes (which are very common in Denver right now, which is rife with contractors who break contracts, do shoddy work, or take your deposit money and disappear).
- Finally, you won’t have to deal with realtors and buyers tramping through your home, judging you and your possessions, and looking at each of your repairs with an intensely critical eye, looking for any reason to make a lower offer for your home.
“Jeff was wonderful to work with. The thing that my wife and I appreciated the most was Jeff understanding of the industry. There is no way we would recommend anybody other than Jeff Corporon for any real estate matters; he’s got himself a client for life. Thank you Jeff!”
~ Jean and Kurt, Brighton, Colorado
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