Thursday, October 31, 2019 / by Ariadne Gold
If you’re thinking of selling your home, and you know that there are some repairs needed, you may be wondering if you should complete those repairs before you list. There are layers of answers to that question, so here are some tips to help you decide!
The biggest thing to remember is that you’re required to disclose any defects that you are aware of. If they are large defects (foundation issues, needs a new roof, etc.) this may scare off potential buyers who are looking for a move-in ready home. It may also make it un-financeable. What you do in this case will depend on your financial position. Do you have the funds to fix the issue? Do it! This will raise the amount of buyers who will look at your listing, and will also raise the amount that you’re able to sell it for. Don’t have the funds on hand, but have some wrapped into equity in the home? You could offer a credit for the repairs. Some companies will also do the work and allow you to pay it out of closing (just remember that you will have to pay this even if the sale falls through!) If you don’t have the funds at all, you will most likely need to list for cash only, which will cut down on the amount of buyers and the price of your home.
Are the defects small? In this case, its best to complete those before listing. If the buyer has a home inspection they will find the defects anyway, and the buyer may ask for them to be fixed before closing. Just make sure you have them professionally repaired! You don’t want to have to re-do it later. There are also some things that, although they may seem small, FHA or VA lenders will require to have repaired to approve the sale. These include any peeling paint (interior and exterior), missing handrails, earthquake straps for the water heater, and the roof must have at least five years of life left.
I hope this helps! If you have any questions, I’m always happy to help. (509) 217-7172