Is your home in condition to sell? Sell your house as is
Need to sell your house now? Not so fast. Learn why the condition of your home might make it impossible to sell.
Many homeowners find themselves in a position where they need to sell their house fast. There could be a myriad of circumstances prompting the owner to make this choice. Regardless of the events, the property condition is a major hurdle that prevents a homeowner from getting their house on the market. Repairs must be made before most homes can be sold or even be listed.
In some situations, the condition of the home is the reason that the homeowner wants or needs to move. The burden of maintaining a home or the daunting task of repairing expensive issues can be too much for some homeowners.
The types of maintenance tend to fall into one of two categories: cosmetic repairs and deferred maintenance.
Cosmetic repairs refer to repairs that are mostly superficial in nature and tend to be less expensive than deferred maintenance issues.
Examples of cosmetic repairs include:
and other treatments
These types of repairs aren’t required to list a house on the market. If the repairs are minimal, then the cost of these repairs could become a point of negotiation with a potential buyer.
Deferred maintenance is maintenance involving repairs to significant systems or infrastructure, usually the result of homeowners postponing repairs to save money.
Many times the failure to perform needed repairs leads to asset deterioration and ultimately, functional impairment. As a result, these repairs will get flagged during a standard home inspection, and if the repairs are bad enough, they will need to be remedied before the home can be sold.
Property Condition and FHA Loans
Everything is negotiable in some sense, but homebuyers looking to buy a property with an FHA loan will need to purchase a home that meets minimum property standards.
The property is used as collateral for a mortgage when a potential home buyer takes out a loan. That is, the loan is secured by the property in case the borrower stops making payments. Consequently, if the borrower does, the mortgage lender will eventually foreclose and take possession of the property. The lender will then try to sell the house in order to recoup as much money as possible.
Requiring that the home meet minimum property standards protects the lender.
What are the minimum property standards anyway?
The U.S. Department of Housing and Urban Development (HUD), requires that properties financed with an FHA loan meet the following minimum standards:
Safety: The home should protect the health and safety of the occupants.
Security: The home should protect the security of the property.
Soundness: The property should not have physical deficiencies or conditions affecting its structural integrity.
Examples of Deferred Maintenance
Untreated roof damage can cause significant issues. Furthermore, it can lead to leaks that persist through the attic and into the interior of the house. These leaks can often remain unnoticed for some time, that is until they have accumulated considerable damage. Water leaks can cause both mold and wood rot that when left untreated, can cause serious health issues, or impair the structure of the house.
The average new roof can cause anywhere from $1000 to $7,000, depending on the size of the house. Mold remediation can cost anywhere from $400 to $15, 000 dollars.
Gutters are meant to capture water runoff from your home’s roof and channel it away from the house. When gutters aren’t operating correctly, they can cause severe damage to both the house and the foundation.
Clogged gutters can cause water to pool up against the exterior of the house, which can lead to wood rot. Water not channeled away from the base of the home can also pool up and cause cracks in the foundation.
The cost of foundation repairs can cause anywhere from $5000 to $12,000, depending on the size of the house.
Termites and Other Pests
Bugs and other unwelcome pests in your home are at the very least, an annoyance and an inconvenience; however, termites can do an unusual amount of damage. Termites can cause wood to buckle, floors and ceilings to swell. When left untreated, termites can also cause some significant structural issues similar to those caused by wood rot.
Termite removal can cost anywhere from $700 to $7,000.
Electrical issues, when left unresolved, can result in a fire. These are issues you want to fix immediately, instead of waiting for a home inspector to tell you. Signs of electrical problems include flickering lights, circuit breakers tripping regularly, and appliances that shock you. These are repairs that aren’t very easy for most homeowners to address as the wiring is located within the walls and require a certain level of expertise.
The cost of electrical repairs can range from $300 to $600 depending on the type of issue and where the location. To rewire your entire home, it might cost up to $15,000.
Other commonly neglected areas and systems that lead to significant repairs when not adequately maintained include:
Heating and AC
Plumbing and leaking pipes
So What Are Your Options?
If you are a homeowner facing an uphill battle with repairs as a result of deferred maintenance, you have several options to consider.
Option 1: Pay Out of Your Pocket to Fix Up Your Property
While paying professionals is usually the most expensive route, sometimes it’s unavoidable. For example, mold remediation and foundation issues need to be completed by licensed professionals. A benefit of paying these professionals is the peace of mind you’ll get knowing that the problems are dealt with correctly and promptly.
Several, specialized contractors might necessary to address any issues depending on the extent of the repairs and whether or not they are cosmetic or deferred. Using multiple contractors might require you to hire a general contractor to coordinate and oversee the work of numerous dedicated professionals.
Option 2: Do It Yourself
As mentioned, not all issues can and should be handled by yourself; however, some can be approached with some elbow grease and a few Youtube videos. Painting, replacing fixtures and installing tile, for example, are all jobs that can be managed by most individuals with an aptitude to learn and work. It comes down to your level of comfortability and how much time you’re willing to dedicate.
Option 3: Sell Your House As Is
In instances where time is critical, and the cost of making repairs is overwhelming, a home-buying company like ours can be a viable option. Homes that require repairs are our specialty – we’ll purchase a home in any condition. Our process is simple: we’ll make you a fair cash offer and close within 30 days.We aren’t agents, so there are no listings, showings, and no hidden fees.
If you’re looking to put your house on the market, you have several options for making the necessary repairs and cosmetic updates. You can do it your self, higher contractors to do the work for you, or even a combination of the two. In instances where neither is an option, consider selling your house as is!