Real Estate Trends in Pleasant Hill and Beyond
Jul 01, 2019 02:48PM
By Norma Flaskerud
The As-Is vs. Fixed-Up Question
We are often asked, “Should we fix up the house or should we/can we just sell it as-is??
There are so many variables that there is no simple cut and dry answer.
For instance, this past week we met with the heirs to a small Concord home. Their parents bought in the 60’s and the house is owned outright. It’s been well maintained but the interior is dated. The decor, paint, floor coverings and kitchen could all be enhanced. Should they do the usual, like paint the interior and add new floor coverings? The answer would be a simple “yes,” because those two improvements usually net the seller twice what they pay. But wait, the house has two bigger ticket items that may need attention! Popcorn ceilings that probably have asbestos in them, and a very old roof that looks like its on its last leg!
Those last two items are rather expensive to fix and may net dollar for dollar return on fixing them. They are not an easy profit fix. To muddy the waters of the “fix or sell as-is” question, is the fact there are 4 heirs. So IF they increase their value enough to create a profit of $20,000, it breaks down to $5000 each; so, is it worth it? By the time one of them (with our hands-on assistance) manages the fix-up over a timeline of 2-3 months, they might each gain $5000 more. You can see why an as-is sale might be best for this family. Each situation is unique and there is no hard rule. Consult with us. Our years of selling well in excess of 650 homes and seeing every situation imaginable, will play into our answer of how we advise in this scenario. I want to add that there is one intangible I have run across many times. Sometimes it makes financial sense to sell as-is, but the seller fixes it up anyway! Why? Pride! Pure and simply he/she wants to show off their home or their parent's home in its best dressed-up look out of pride for the family. Proud of what it was and pride of what it can be!
We are happy to share our vendors with you; we trust and admire many who do inspections and repairs and are happy to supply their information with you. Just ask!