Every home show on TV is highlighting the magical power of renovation, but is your house worth renovating? While renovating offers some perks, so does selling a house as is. In this article, we are going to discuss four major benefits of selling a house as is and discuss the biggest disadvantage.
4 Main Pros of Selling a House As Is
It’s no surprise that the four main reasons for selling a house as is revolve around time and money. Renovations take money, and only a fraction is usually seen in return. And as our most precious asset, time is always of the essence when selling a home, especially one in financial distress. Here’s how selling a house as is can save you time and money.
No Spending Money You Don’t Have
While the adage “It takes money to make money” may hold a nugget of truth, it is problematic when it comes to home selling. For starters, it implies that you need to spend more money on your home to make money from selling. It doesn’t take into account the purchase of the home, all the mortgage payments you’ve made, and maintenance costs over the years. All of those expenses may be enough for you to have enough equity in your home to sell as is.
Secondly, spending money does not guarantee you will make money. And if you are spending money you don’t have, then the only guarantee is you are now more in debt than you were.
No Unexpected Repairs
TV home shows do highlight remodeling magic, but don’t forget the mid-episode drama. When you start tearing down walls, lifting up floors, and so on, you are more likely to uncover a hidden problem than not. Now, it is your ethical duty to report or repair any known problems within your home. As a good person, you need to uphold that duty. However, you need to be careful not to go looking for problems, especially if you’re already under financial distress.
No Negative Return on Investment (ROI)
Did you know what the average return on investment for home remodeling projects is? According to the 2019 Cost vs Value Report, the average ROI is only 68.6%. A less-than 100% ROI may be appealing if you plan to stay in the home for a while to enjoy the upgrades, but what if you want to sell now? Is it worth only getting $68.60 back for every $100 you spend?
Property Immediately Available for Purchase
Repairs and remodels take time. Potentially, a lot of time. Selling a house as is enables you to sell immediately. Immediately selling a house as is comes with three big benefits:
- Potential profits come in sooner
- Get out of financial distress faster
- No more mortgage payments
The last benefit is one many homeowners forget to consider. Every day you are making repairs or remodeling is one day closer to your next mortgage payment. Selling immediately could save you another month’s mortgage, if not more.
#1 Con of Selling a House As Is
The biggest disadvantage of selling a house as is comes back to our most valuable asset: time.
May Sit on the Market Longer
Selling a home as is on the traditional real estate market may take longer than if you remodel or make repairs. The main reason it could take longer is the lack of “curb appeal” for conventional buyers. They may see it as ugly or potentially a money pit.
Now, you may be thinking that this con cancels out the fourth benefit we discussed, but that is not the case. The keywords in the previous paragraph are “traditional real estate market” and “conventional buyers.” There is a huge market that lies just outside of the traditional market that is filled with unconventional buyers. Investors and savvy homebuyers are actively looking to buy houses as is. They want to buy immediately and close fast.
Companies that Buy Houses for Cash
You’ve likely seen advertisements for companies that buy houses for cash. While they may seem too good to be true, there really are legitimate companies and people who buy houses for cash. We know this to be true because we work with those legitimate entities.
At Tropic Coast Homes, we can help you with selling your house as is without any cost to you. Our job is to connect you with an unconventional buyer that is ready to give you cash now for your home. To learn more, check out our FAQ or Contact Us today.