Does it pay to fix your Chicago home before you sell? Homeowners in the Chicago area looking to sell have asked themselves this question repeatedly and as Chicago real estate professionals we are constantly seeing homeowners making the wrong choice.
There are two circumstances that favor fixing your home up before you plan to sell. The first scenario is where there is a large variance in the cost of the repairs and a potential buyer may likely over-estimate the cost of doing the repairs themselves. In the case of a septic system, for example, the cost depends on the soil and the size of tank needed. If the seller knows that the soil is favorable and the cost to do the work is low, it makes sense to make the repairs before selling.
The second and probably more common scenario happens when potential Chicago homebuyers have a limited or small down payment, and are therefore not in a position to fund the cost of major repairs after they purchase the home. By making the repairs before you sell your home you potentially have the ability to increase your asking price. In this scenario a homebuyer is in effect financing the improvement in the mortgage. If a buyer with limited cash had to make the improvements after purchase, the financing costs would be substantially higher. Remember that fixing structural defects before selling your home takes more time, which you as a seller may or may not have. In addition, depending on the type of repairs needed, the value to a buyer may be less than the cost to the seller if the repairs involved deal with aesthetics.
When does it pay to sell your Chicago home as- is? The first scenario happens when you are a homeowner in the Chicago area that needs to sell your home quickly. Making repairs will only slow down the sale process, so selling your home as-is is the best solution.
The second scenario happens when the house has a lot of expensive repairs and the seller cannot afford to make the repairs themselves. There are homebuyers like Great 2 Be Home that have the financial capability to pay for all needed improvements and can make you an all cash offer for your property. This solution in beneficial to the seller because they can sell their home quickly and avoid any home inspections that may lead to last minute repair requests affecting sale of the home.