Do You Need to Repair Your Home Before You Sell It?
You may not need to significantly repair your home before you list it on the market. Unless your home is in a poor state or safety hazards are keeping it out of good working condition, you could stick with minor upgrades before it hits the market.
Most homebuyers are looking to get a home that is the most “bang for their buck,” so some buyers will not want a home that needs a lot of TLC after closing day. A well-maintained home may not need more than a fresh coat of paint and new wall sockets, but how do you know what matters the most when selling your home?
The answer lies in the type of upgrades or repairs your home needs, along with the current market. If inventory is low in your area and we are in a seller’s market, the minor repairs or upgrades (and in some cases, major) may not matter as much to buyers. However, if inventory is stabilized and the market reflects that, you may need to roll up your sleeves or hire a contractor to make some changes before you list your home on the market.
Repairs Vs. Upgrades
It’s important to make the distinction between repairs and upgrades. A repair (whether it is minor or major) is not just cosmetic and it can impact the integrity of the home. Think of a repair as a reactive fix to an issue within your home. For example, repairs can be leaky faucets or roofs, plumbing fixes, etc. Repairs are typically done to prevent more damage to the home and can range from repairing cracks in the foundation to replacing water pipes.
The most common home repairs can be sorted into just a few categories:
- Structural Repairs
- Electrical Repairs
- Plumbing Repairs
- Roof, Foundation, and Wall Repairs
Upgrades, on the other hand, can be cosmetic and are typically done to improve the home’s market value. Upgrades can personalize the home or improve the quality of living for the homeowners. Think of upgrades in terms of replacing appliances for energy efficiency or aesthetics! Other examples of upgrades include re-staining a deck, painting the exterior or interior of the home, and finishing a basement. Upgrades are also known as renovations and typically fall into a few different categories:
- Kitchen, Bathroom, or Bedroom Remodels / Renovations
- Cosmetic Paint Changes
- Basement Remodels or Finishing
- Adding or Expanding Rooms
Both home repairs and upgrades can be expensive depending on the job. But, you don’t necessarily need to upgrade your home before you list it on the market – unless the home is incredibly outdated and we are stuck in a buyer’s market.
Major Repairs Before You Sell Your Home
Before you reach out to a realtor or real estate agent to sell your home, make sure that you are confident about its structural integrity. The foundation of your home and its structure are some of the most “make or break” factors, and if there are cracks or issues with the retaining or stem walls, a buyer may not even consider making an offer.
A home inspector can go through your home before you list it to identify any issues for you so that you can take care of it before it hits the market. A pre-listing home inspection cannot be used to negotiate a lower buying price. In some cases, it’s smarter to have someone come in advance to make sure that your home is in top shape to avoid any hiccups later on.
Besides your home’s foundation and structure, major repairs that should be completed before you sell your home often include the big ticket items:
Roof Repairs
In the best-case scenario, if your roof has been damaged due to weather or wear and tear, all it needs is major repairs. But if your home is older and the roof is falling apart, you may have to bite the bullet and replace it. Roof repairs can cost around $300-$1,755 on average, but major repairs can easily shoot up to $8,000 if you need to partially replace a section of the roof. Full roof replacements typically go up to $40,000 depending on the size of the home and the current cost of materials.
Plumbing Repairs
If there is any significant damage to the plumbing in your home, such as cracked pipes or sewer issues, make sure to get those taken care of ASAP. Plumbing issues can lead to water damage, which often comes with mold issues and other costly problems that will be expensive to deal with in the long term. Many homebuyers will not want to deal with a home that has a history of water damage and mold.
Electrical Repairs
Issues with the electrical work in your home can be difficult to repair on your own, so it’s best to call the professionals if your electrical work is not up to code. Faulty or outdated electrical work can easily lead to fires, so make sure to take care of these issues sooner rather than later, even if you don’t plan on selling your home in the near future.
HVAC Repairs
If you have issues with your heating and cooling system, that is another major you may want to take care of before selling your home to attract potential buyers. The average cost of replacing an HVAC system can range from a few thousand to several thousand depending on the type of system in your home and its size, along with the cost of labor in your area.
Smaller Repairs You May Not Need to Make Before You Sell Your Home
Now that you understand more about the major repairs that you should fix before you list your home for sale, know that you don’t need to fix everything that’s “wrong” with your home before you sell it. While some cosmetic issues or minor problems may lead to the buyer trying to negotiate during the selling process, they aren’t a dealbreaker for most buyers.
Smaller repairs can include cracks in the wall, damaged trim, scratched floors, and old grout in the bathroom. While you can make these repairs before the house sells, you may not need to! The best thing you can do is ask your realtor or real estate agent for advice. They will hopefully know the market well enough to point you in the right direction.
Financing Home Repairs When You Need to Sell Your Home
If you can’t afford the cost of repairs and need to get your house on the market as soon as possible, you can apply for a Home Equity Line of Credit (HELOC) or a home equity loan. If your credit score is not up to par and you can’t meet the eligibility requirements, other options for financing home repairs include secured loans, such as online installment loans or personal loans.
Major home repairs are not cheap, and you may not have a large enough emergency fund to pay for roof repairs or other issues. If you need to bring the electric in your home up to code, you can expect a hefty invoice at the end of the service. So how do you pay for large-ticket items? You can bring out a home inspector to offer advice and ask for estimates before you sign any agreements for work on your home.
