What does a house in bad conditions actually mean? In our experience, this means different things to different people. A house can be considered in poor condition if it has not been painted or remodeled since the ‘70s or ‘80s, as its owners might have been an elderly couple that was confronting health issues and understandably has focused on their ailments rather than on keeping up their property. A property can also be considered in bad condition if it is full of junk or smelly, due to the house being vacant for a few years after giving up being a landlord. These are just two examples of houses that represent a small part of the spectrum of houses we’ve seen in bad conditions.
If you’ve inherited or, you just own such a house, it’s important to understand the scope of work and money required to get the property back to market conditions. In some cases, it’s worth making the investment on fixing it up while in others it’s a lost cause and should just be sold “as-is” to someone like The ASAP Properties, LLC who can buy your houses in Cincinnati Cash.
Remodeling the House before Selling
Remodeling magazines make annual surveys to find out which remodeling projects deliver the best and the worst results. The 29 most popular home improvement projects in 99 U.S. markets compared the average cost of the remodeling projects with the value those projects retained at resale. According to this report, there are just a few remodeling projects that actually recoup 100 percent of the cost of the project. Some of the projects that have the highest ROI are:
- Replacing siding recoups on average 103.6% of the cost of the project.
- Upgrading the bathroom with a standard toilet, porcelain tub, and double sink recoups 102.2% of the cost of the project.
- Attic insulation proved to be the remodeling projects that gave the most return on a homeowner’s investment, with a 107.7% return.
Before starting the remodeling process carefully consider if it is worth the headache just to make a “return” of 2 to 7 percent on those projects?
If you actually decide to remodel your house ask at least 3 quotes from general contractors that come with very good references and add a buffer of at least 10% to your budget if your house is older than 25 yeas as the house may have hidden damages or aspects that are no longer up to code.
Time is also a variable you should take into account if you plan to remodel the house. Look at the time frame proposed by each general contractor and add extra time for the unknowns and any permits required to bring the house up to code.
Can you get your money back when you sell?
The truth is you likely won’t get back the full amount. In some cases, spending a significant sum to get a house in poor condition ready for sale is not a very good idea, especially if you have to make a quick exit.
Turn It into a DIY Project
If you want to transform the remodeling project into a DIY the budget might drop but the timeframe will extend by a lot. And a lot might be 6 months to 1 year over the initial deadline you had considered while planning, especially if you are not very experienced and the house needs lots of improvements and changes to compete on the market.
DIY home improvements can be very rewarding, both in terms of saving money and the sense of accomplishment. Choose your projects carefully or you will lose your time, work and you will also end up paying more to have the work redone correctly by a contractor.
Make sure to have all the renovations done correctly, at a professional quality. If a potential buyer notices a less-than-professional finish, they might believe that there are maintenance issues hidden from view.
According to the U.S. General Accounting Office, more than 85 percent of potential home buyers that are looking to get a mortgage also requested a house inspection.
When it comes to structural repairs, anyone planning a sale shouldn’t try to sweep problems under the rug. Before putting your house on the market, make sure there are no major issues that will scare buyers off.
Major repairs, such as cracks in the foundation or leaking roofs can be very expensive and their repairs will disrupt your life. You may want to take a look at some of the smaller repairs so they don’t come up during an inspection. If there are any major issues with the property you need to disclose them to potential buyers. As in most states, sellers have a duty to disclose known defects to prospective buyers.
Is a house inspection right for you? There is no right or wrong answer, it depends on how you would like to approach the selling process? When answering this question take into account that the buyer will most likely have a separate inspection done anyway, in which case the issues are likely to be revealed.
The cost of a home inspection is based on the age of the home and its square footage. On average, a home inspection will cost about $300 to $600. According to a survey performed by HomeAdvisor.com, most homeowners across the US spent between $267 and $371 for a pre-inspection. If you choose to not spend the money you can always get an inspection checklist from the U.S. Department of Housing and Urban Development.
Selling the House “As Is”
Another option you have is to contact a “We buy houses” company that will help you get a quick and fair cash offer on your property, no matter its condition. If you contact ASAP Properties, LLC we promise a smooth and quick transaction at a fair price, for your, “as is“, property. You will avoid the 6% realtor commission and the thousands of dollars it could cost to repair or beautify your house.
If your house is something of an eyesore, you can still sell it. We specialize in buying houses that need work and won’t shy away from a home with structural problems.