It’s not uncommon for a homeowner to find themselves in a position where the cost of necessary repairs actually exceeds the value of the home. Read more
This is especially true for homes that are very out of date and desperately need to be modernized. If you’re looking to get full market value for your home, you may be considering making some vital repairs. In some cases, it’s worth it. In other cases, it’s an unwise investment.
Roofs are very important to buyers. Roofs are obviously a necessary structural part of a home, and they get beat up pretty quickly. Roofs protect a home from the elements as long as they’re well maintained, and a damaged roof usually leads to damage in other places. Old or damaged roofs dissuade buyers who don’t want to pay the full cost of a replacement on a home they’ve just purchased.
If you need a new roof, you can expect to spend an average of $4,957 in the South Atlantic region of the United States. If you have $5,000 for a new roof, it may be worthwhile. If your inadequate roof has caused damage to your attic or water buildup within your walls, there’s no point in putting a new roof on unless you intend to fix those problems as well. It’s not worth a $5,000 bandage for a problem that really costs three times as much to fix.
To add insult to injury, many repairs and renovations don’t add as much value as they cost. With poor return on investment, you’re actually losing money. Best case scenario, you’ll recoup your investment, but you’re stuck with the property for longer. Repairs and renovations can take quite some time to complete, and you’ll be paying the mortgage, utilities, and maintenance costs of the property in the meantime.
It might be a better choice to find a buyer who will take the home as-is. Investors aren’t intimidated by properties that need a lot of work, and they’re willing to buy them in cash. Investors will offer less than fair market value, but when all is said and done, buyers almost never receive full market value anyway. The investor deducts the cost of repairs and buys them home quickly, taking the problem out of your hands.