July 29, 2019
Interested in selling a property that requires some major repairs? Perhaps you need a bathroom renovation. Or maybe you need to completely repair the roof. Whatever the case may be, you can sell a property that needs major repairs, even though it may be a bit more difficult and time consuming. You may decide to renovate, but you should consider the costs and potential returns before making the final call. You could also decide to sell “as-is,” meaning that you won’t negotiate any potential repairs or renovations with prospective buyers during the sale. Here’s how you can sell a home that is in need of significant repairs.
Should You Renovate?
The decision on whether or not to renovate has major financial implications. A successful renovation can improve the value of your home. But not all renovations bring the same return. The top five highest returns come from:
- Bathroom remodeling (average cost of $10,500, average return of 102%)
- Landscaping updates (average cost of around $5,000, average return of 100%)
- Kitchen remodeling (average cost of around $15,000, average return of 98.5%)
- Exterior improvements to the home, such as buying a new front door (average cost of about $7,250, average turn of 93.3%)
- Converting the attic into a bedroom (average cost of about $40,000, average return of 93.2%)
Options For Paying For Home Renovations
The returns above might sound attractive, but the pricing can get expensive for some sellers, especially if they don’t have the cash on hand. Let’s talk about options for paying for a home renovation. Here are the typical options for receiving a loan for home renovations:
- Mortgage refinance
- Home equity line of credit
- Home equity loan
- Credit cards
- Borrowing from your 401k
Refinancing your mortgage can free up some additional money for renovations, and it is the most commonly used option. A HELOC, or home equity line of credit, is essentially a loan that is taken against your equity. HELOCs are similar to credit cards in that you can spend up to a certain amount and pay it back over time. Home equity loans are similar to HELOCs, but have a fixed interest rate and are only for a set amount. Using a credit card may be preferable for small renovations, but borrowing from your 401k may be an option for larger ones. Be mindful-any amount you borrow must be repaid within five years, and the money will come out of your paycheck.
Selling Your Home As-Is
If you want to sell your property immediately, then you should consider working with 4 Brothers Buy Houses. 4 Brothers Buy Houses will purchase your home for cash, and you won’t have to make any costly repairs or renovations to the property. Major renovations can cost tens of thousands of dollars, and there is no guarantee that you are going to get a positive return for your efforts. By selling to 4 Brothers Buy Houses, you can get value for your property right away, without the time, money, and frustration that goes along with home repairs. Get your free, no obligation quote today.