Fix it Before You List it?

Why shouldn’t I just sell it as is?

While I understand why sellers may not be inclined to spend money making repairs (like replacing a broken pane of glass in a window, repairing broken screens, or having baseboards and trim painted) before they know what a buyer is offering them, for houses that are generally updated and in good repair, those types of items should really be done before prospective buyers see the house. Why? Because, (even if the repairs to be done are noted), it can create a sense in a buyer’s mind that the home in poorly cared for. (Please note, this article isn’t intended to apply to “TLC/Fixer Upper” properties. It would be like putting lipstick on a pig to repair a broken window pane when the windows all need to be replaced.)

Consider return on investment

Obviously, there may be some parts of the home or property that are beyond the scope of work you’re willing to do (for example, painting the entire house, refinishing all the hardwood floors or replacing the roof). Sometimes the investment is too great and sometimes the return on that investment is too low. As long as you understand the “objections” buyers might have and you have priced the house accordingly, you don’t need to do those expensive projects. It’s the things that you DO intend to fix that you want to be sure the buyers never see in their “broken” state.

Sometimes, if, for example, you are prepared to pay for new carpeting, but you think buyers might prefer to choose their own as opposed to hoping that they like your choice, you might offer them a credit toward new carpet. While it’s true that buyers make like the idea of choosing it themselves, you’ll need to be sure to make it very clear that you’ll be providing that credit and remember, relying on people to look past the old, stained carpet and imagine how it would look with new carpet is not always successful. So just weigh the risks.

Consider timing for project completion

One caveat: timing. If, for whatever reason, you need to get the house sold as soon as possible and don’t want to wait to list it, you may decide to put it on the market before it’s as “show-ready” as it should be. This decision is always a judgment call. If you do list it, be sure to prominently display signs or leave a list of repairs that you will be making on the table (with copies buyers can take with them), have your agent be sure to include the information on the MLS and ask her to be sure any agents who request showings receive a copy electronically. You don’t want people thinking the price reflects the house “as-is” if it doesn’t.

Similarly, if weather conditions prevent you from, say, resealing your driveway or laying sod, be sure to explain that these projects will be completed when weather allows, even if it’s after ownership has transferred (just note that you will have your contractors direct-bill you when they are able to complete the job).

It’s always best to put your home’s “best foot forward” at the time you list it. Showing prospective buyers anything less than its most appealing look is risky, but there can be situations where you might consider listing it before you’ve done some repairs that you actually are willing or planning to do. My advice is to discuss the best strategy with your agent and spend the time to consider the pros and cons.

For more on which are the most common buyer objections (and how sellers can address them), click here.