The Pros and Cons of Selling A House As-Is

The Pros and Cons of Selling A House As-Is

Anyone who is looking at selling their home is usually faced with one really big decision: Should you put some money into upgrades for your home to entice buyers, or should you be selling a house as-is and take what you can get?

When trying to make an informed decision on whether to try selling a home as-is or renovate parts of it, it’s important to look at all the pros and cons of both sides. In this article, we hope to give you information about the upside and downside of renovating before selling.

What Does it Mean to Sell a House As-Is or Renovate?

When you sell a house “as-is” that means you aren’t going to do anything specific to upgrade or make repairs to any part of the house. It tells buyers that it’s a fixer-upper in some ways and what they see is what they get.

Common renovations some sellers may do before trying to sell can range from simple to more involved depending on what the house needs. Renovations that are done more often before putting a house on the market include putting a fresh coat of paint on all interior walls, gutting and updating the bathroom and updating the flooring.

What are the Pros and Cons of Selling a House As-Is?

Some reasons you may decide to lean toward selling your house as-is include:

  1. You have no time to waste. Not every move is preceded by months of planning and discussion. Sometimes moves have to happen now because you have a new job or a family emergency that requires you to be somewhere else quickly. Selling a house as-is will ensure you are where you need to be quicker since you don’t have to wait around for renovations to be completed.
  2. Renovations are not in the budget. When you hear words like “gutting” or “upgrading,” a lot of people immediately think of the dent it will make in their wallet. Sometimes an upgrade just isn’t financially possible before selling. (If this is your reason, our Property Concierge program can help.)
  3. You don’t want the stress. Renovations under any circumstance can be both exhausting and stressful as you juggle contractors, bills and everything else. Selling as-is is definitely the least stressful way to sell.

However, there’s a lot you need to take into consideration before you decide on selling a house as-is. Some reasons this may not be the best path for you include:

  • You will attract few buyers
  • It will be harder to show potential buyers why your home is worth the money you’re asking
  • In the long run, you will get less money for your home if it’s in an “as-is” condition.

Why Should You Consider Renovating Before Selling?

Some benefits that you’ll experience if you decide to do some renovations and updates before selling include:

  1. You’ll attract more buyers. According to Coldwell Banker, the majority of every generation – 70% of Millennials, 71% of Generation Xers, and 63% of Baby Boomers – would sacrifice home size for a home that’s move-in ready.
  2. You’ll sell it faster. It’s a misconception that the only way to get your home to sell quickly is to sell as-is. With even the most minor upgrade or renovations, those interested in your home will quickly convert to buyers of your home.
  3. You’ll get a better return on investment. Depending on the renovation you choose, your home and property will increase in value and help you get that higher asking price. According to Canadian Mortgages, Inc. renovations that could get you between 75% – 100% ROI include upgrading plumbing fixtures and repainting or wallpapering.

According to The Spruce, kitchens and bathrooms sell houses. Updating these two areas could help your chance of selling at a profit making the investment worth every penny. Some other things you can do to spruce up your home to boost its selling potential include:

  • Upgrade fixtures and hardware
  • Replace doors
  • Enhance curb appeal with landscaping
  • Reveal or restore hardwood floors

If you’re wondering what renovations will give you more bang for your buck when it comes to selling your home, we can help guide you. Contact one of us today for a free consultation to discuss your renovation needs and ask about how we carry the cost of those renovations until you sell, making sure you are never out of pocket.