IF you’re in this situation, your question is probably: “Do I need to make repairs?”
The quick answer is “No, you don’t need to make any repairs.” The real questions are — when do you need to sell by and what is your home’s current market value? The time it takes for a property to close escrow, from the moment a seller accepts an offer to the transfer of title, ranges from 21 days to 45 days.
However, this does not take into account preparing a property to list on the market prior to receiving an offer. Once an offer is accepted, sometimes it can be as quick as 10 days with an all-cash buyer and the buyer doesn’t require any contingencies on financing or inspections.
Who will buy my home?
There are two types of real estate buyers: 1) investors and 2) homeowners. If you’re a homeowner, you’re probably thinking that you consider yourself a real estate investor since homeownership is an investment itself. However, there is a difference between a real estate investor and a homeowner. Investors seek out homes and properties that they can “fix and flip (resale)” or “buy and hold” for rental income. Most investors don’t live on the property they purchase. They purchase properties based on their return on investment (ROI) criteria.
In comparison, homeowners purchase homes to live in as a primary residence. They seek out homes because of the neighborhoods, school districts, or actual type of home. A homeowner’s ROI is their lifestyle.
Real estate investors seek out homes that may need minor and major repairs. Additionally, investors will waive off repair or financing contingencies. Finding distressed homes is what they’re good at. If you need to sell immediately within a short period, within two weeks, finding an investor buyer is your best option.
What if the buyer offers less than market value?
Keep in mind that a home requiring repairs, requiring a buyer to purchase in as-is condition, and requiring a buyer to purchase within a short period, is valued under market value. The full market value of a home is based on the comparable of recent homes sold that don’t require any repairs. Most homes at full market value don’t require any renovations at all and are turnkey ready to move in. If you are seeking to sell your home at full market value, then you will need to invest into the required repairs at minimum, and sometimes require renovations to update your property. An advantage to selling a distressed property at less than market value without making repairs, saves you the repair costs and the time required in making the repairs.
What is your goal?
When you need to sell your property, always ask yourself— what is your goal? Do you need to relocate immediately? Do you need the money from the equity? Is it time to reinvest the equity? Is it time to move on? Is it time to finally retire? There are things in life that can’t be bought or replenished, and that’s time.
* * *
Contact me directly 213-608-5837 (call or sms) for a complimentary initial consultation, property value assessment, or other questions you may have in Selling, Buying, or Investing in real estate. Connect with me @jasonarealtor on Facebook, Instagram, and LinkedIn.
* * *
Jason Agcaoili is a realtor with HomeSmart Realty Group, serving the Los Angeles Metropolitan area, South Bay and Long Beach. He is a member of the California Association of Realtors and the South Bay Association of Realtors. CA DRE #01947185. For more information, please visit JASONAREALTOR.com.