Q: Dear Matt:
I’ve taken a job in Milwaukee and they needed me there “yesterday.” We’ll be renting a home until we can find one to buy but my question has to do with our current home in Woodbury. I hate to admit it but I’m not the best maintenance guy and the home is showing some wear and tear and it needs some repairs. I just don’t have time to do them and I won’t be in town to supervise the work anyway so I’m wondering how you feel about selling it as-is?
Soren Anderson, Woodbury
A: Thanks for the question, Soren. Whether or not to sell a home as-is depends a great deal on what type of market we’re in. If it’s a buyers’ market (one where the buyer has lots of homes from which to choose) I would advise against it. In a sellers’ market, however, you have a bit more leeway on what you can get away with and still make a decent chunk of cash on the sale. There are other considerations aside from market conditions, however.
A study came out a year or two ago that found homebuyers, by and large, want homes that are in move-in condition and are willing to pay more for one that is. When a buyer is faced with a large selection of homes yours will need to have some pretty compelling features to beat the competition and get the buyer to pony up for a house that needs repairs.
The first consideration is price – depending on what’s wrong with the home, you may need to price it significantly lower than market value to make it an attractive purchase. If this is something your budget can
tolerate, you’ve passed this hurtle. But, there are others.
THE BUYER’S LOAN
Buyers aren’t the only ones that want a home...