Sometimes it is difficult to let go of your old house at a lower value. Only because it needed some repairs. In this discussion, you will learn to decide when you should sell your house for cash without investing in repairs.
If you see that your house needs a major improvement or repair just before the time of selling, then it becomes challenging to decide the right course of action. You might think repairing the damages might attract more value for the house, but at the same time the cost might seem too much to bear.
In that case, see if the repair is a major one or can be done within one or two days of work. If it costs you a lot, and the house is old enough, then it might be a wise decision to sell it for cash.
But what does it truly mean to sell for cash? Or, which type of repair is a major one? Let’s find that out in the following discussion.
What Does “Selling for Cash” Really Mean?
It means selling your house, in whatever condition it may be, for cash. Some buyers will offer you a cash offer for your home, and you may choose to sell it as is. You don’t need to contact any agents or spend money on its marketing.
As there are no middlemen involved in the entire process, you can directly contact the buyers and get a better price for your home. Here, you don’t need to pay brokerage. Additionally, the house gets sold within a few days, considering the cash offer is acceptable to you.
However, if your home is significantly damaged, then you might get a slightly reduced value, because the buyer will have to invest in the repair of the damaged home. But selling a damaged home for cash is still a better option as it saves your time and resources from major repairs.
What Counts as “Major Repairs”?
Once you have a clear picture of what you consider a major repair, the decision-making process will be easier for you. Let’s see what they are.
Foundation Damage
If your building foundation is damaged significantly, then it can be difficult to repair it without investing too much. For example, if there is a ground settlement issue with your building foundation, it may damage the building structure. Repairing it from the root will cost you a fortune.
Roof Replacement
Your building might have a damaged roof, and during the rainy season, rainwater might seep into the room. A major repair is on the way if you want to renovate the building.
Electrical/Plumbing Overhauls
This is another complex repairing situation, here you will have to check all the electrical or plumbing systems and identify the issue to repair it. If your house is old enough, then you will have complex electrical wiring in your house.
Moreover, the old plumbing system will be damaged and will need replacement.
Structural Damage
If your building has suffered damage because it is old, it means the entire building might have structural issues. To repair it properly, you will need more time and resources. On the same note, if there is significant damage due to fire or water, you will need to invest a lot in the house.
Pros of Selling a Fixer-Upper for Cash
If your house has one of the above-mentioned issues, then it is better to look for a cash offer for your home and sell as quickly as possible. You might have the following benefits by selling your home that needs repair.
| Benefits | Why It Matters |
| No repair costs | Save thousands upfront |
| Fast sale | Ideal for urgent moves, inheritance, or divorce |
| Reduced stress | Avoid inspections and renegotiations |
| Lower closing costs | No commissions or extended holding fees |
Table 1: Benefits of Selling a Fixer-upper for Cash
Potential Downsides of Selling for Cash
As you are in a rush to sell the home without investing in the repairs, the unlicensed buyer might offer you less than the expected value. Moreover, there is a high chance that you will receive 60 to 80% market value of the house.
What might be more disconcerting for you is – there will be little to no room for negotiations with the buyer.
When Selling for Cash Makes Sense
Still, you might end up selling the damaged home for cash because you may not afford the repair costs. Besides, you don’t know how long it will last after the repair.
Or, you may have decided to move out of the location due to a job change or other immediate reasons. In that case, getting a cash offer for your home would be a wise decision.
Even if you have inherited a property, you can go for selling your home quickly for cash.
Alternative Options to Consider
- If you don’t like the option to sell your house for cash, you can go for the following options.
- Invest in renovation and list your property on online platforms
- Sell to a buyer who will be okay to renovate the house after he purchases it
- You can alternatively accept an offer from an iBuyer who uses market data and algorithms to offer you a price
- If you can repair the house, rent it out to a reliable tenant
Avoid Repairing, Go for a Reliable Cash Home Buyer
Free yourself from the burden of repairing the house; choose a reliable cash home buyer. You might get a reduced value for the house, but it will compensate for the repair cost. Invest the money received from the old house to purchase a new one. You will have a better ROI for your investment.
