If you can afford to pay for repairs out of pocket, you may want to do that. Properties in bad shape don’t sell for nearly as much, as common sense would dictate. People want fresh new homes that are dry and safe. [read more="Read more" less="Read less"]
They don’t want to wait on a home to be fixed before they can move in, and they certainly don’t want to pay for repairs on a home they’ve just purchased.
Roofs are always the perfect example when trying to determine whether or not the costs are worthwhile. They’re a crucial structural component of a home, and they often need to be repaired or replaced. In the Mountain zone of the US, the average cost of a roof replacement is $5,043. Virtually no buyers want a home with a dilapidated roof, so that leaves you with two choices: either pay to have the roof replaced, or sell for a substantially lower price to a buyer that’s willing to replace the roof after the purchase.
Some properties need so many repairs that they may begin to feel like lost causes. Repairs can quickly add up to tens of thousands of dollars, and remodels are just the same. If a house hasn’t been updated for a few decades, it’s bound to have some kinks to work out. All of these kinks are expensive, and they don’t always provide the return on investment you’re expecting.
Kitchen remodels, for example, can run anywhere between $18,000 and $90,000 for a Utah homeowner. If your home is close to Utah’s median value of $229,200, you could be spending nearly 40% of your home’s value on remodeling a single room. Even for the least expensive remodel, you’re spending $19,000 and only adding $15,000 in retail value. You’ll also have to continue to pay the mortgage and the upkeep costs for the home while the repairs are taking place. You’re losing money, and it may not be worth the investment.
Your best option will most likely be to sell your home to an investor. They have teams that handle repair labor for them, and will deduct the cost of necessary repairs and renovations from the offer they make on your property. This will save you a lot of time and grief, and you won’t be responsible for paying the bills while the repairs are taking place. [/read]