(Note I listed these two properties a few years ago when it was not the crazy market of today. But as the market starts to cool a bit this article is still relevant.)
This is a tale of two houses. Both of them needed work, albeit most of the work needed was cosmetic. Both were in very different price ranges and communities. Both sellers asked for my advice as to whether to fix up or sell as is. I always want a property to be presented in the best condition possible while spending the least amount of money. I can’t remember how many times I have had a seller put in new carpet only to drive by the house a month after the sale to see the carpet sitting on the curb and new flooring being installed. However, I needed to keep in mind the budget and goals of the sellers. In this case I adopted two very different strategies.
The Tolleson house had been a rental for 11 years. It was 2518SF, 5 bedrooms, 3 full baths, small lot at 4045SF and no back landscaping. Though the house was not completely thrashed it definitely needed some repairs, paint, carpet and an extra heavy-duty cleaning. Two years ago, when the house was vacant, the AC condenser units were stolen. The seller decided to only do the minor repairs, clean the interior, clean up the landscape to avoid an HOA fine, spray for the infestation of scorpions and put cages over the condenser units. The roof was leaking and it was repaired out of concern that it would be required by the FHA or VA appraiser. The house needed a full interior paint including some ceilings and all interior flooring replaced. The seller wanted a quick sale with minimal expense. The cost to get the house ready to sell was $5,000 including the $1,800 roof repair. The cost with the full interior paint and new flooring would have been an additional $10,000 to $25,000 depending on the grade of vinyl and carpet. The tenants moved out two weeks later the house was ready to go on the market. I reviewed the recent sales and compared move in ready houses and priced the house $20,000 under. Six days later we were under contract at full price and closed 34 days later. This dog hunted quickly and with minimal out of pocket expense for the seller. The seller was very happy.
The Gilbert house had been owner occupied for 14 years. It was 3554SF, five bedrooms, 3.5 baths, nice lot at 9835SF that was fully landscaped with a gorgeous pool and spa. The cabinets were maple, all counters were granite, porcelain tile in kitchen, baths and entry. It needed work for mostly normal wear and tear items, i.e. paint, carpet, cleaning, landscaping in front, light bulbs and a myriad of miscellaneous items. The seller had moved out, traveled a bunch so handed the project over to me on July 5. I got the bids for all the interior cleaning and repairs for the seller to approve. The seller handled the landscaping, pool repairs and exterior window and screen cleaning. When I listed the house it looked beautiful inside. The painters did a great job on the painting as well as touching up the cabinets and painting the inside of the drawers making them look like new. The money spent to get this house ready to sell was well worth it. Not only did it sell quickly it sold for more and faster than neighboring houses.
The moral of this story is selling a house as is makes sense in some situations depending on the seller’s finances and the location of the house. Keep in mind the project management I did is usually an extra fee. Though I spend hours going through the house looking for repairs that are needed, getting estimates, measuring flooring, supervising the workers, etc. I have not charged for this service. Most realtors will look at the house, tell the seller what to do and show up with the sign and lockbox when the work is done. If you are looking for a full service realtor who goes the extra mile, give me a call, send an email or text.