Selling Your Home For Cash: 5 Costly Repairs You Can Avoid
by Mashum Mollah Real Estate 01 September 2017
During the process, home buyers are always keeping an eye out for signs of potentially costly home repairs. If a buyer spots any number of issues with a home, they will run for the hills and you will be left with new problems and no sale. Oftentimes, prospective home buyers decide relatively quickly whether or not they want to buy a house. Whether it’s because of the great curb appeal or the huge closets, potential home buyers can hold on to the property’s great features while ignoring or downplaying the negatives. However, if a homeowner comes across what could be a costly repair, that initial love will fade.
Read also: Guide to Buying a Home with a Small Budget
While selling your home for cash is always a great option to sell your house fast, if you encounter one of these major issues, it may be the only option if you want to avoid completing the major repairs.
Read also: 6 Things That First-Time Property Buyers Need to Know When Buying Homes
Here are 5 costly repairs that could derail your home selling process:
1. Roofing Problems:
Completely replacing a roof is one of the most expensive repairs a homeowner will have to endure. While you may think the roof is fine from an outside perspective, there are potentially hidden problems that can result in a potential buyer requiring repairs. Some of those issues can result from a faulty or degraded roof include water damage, mold, mildew, electrical issues, insulation problems. Many of these problems are undetectable until an inspector gets on the roof but a new roof can cost as much as $15-$20,000. If your buyer find out that a new roof is needed, a conventional sale will not be a viable option until the roof can pass inspection. At this point, you could take out a loan for a new roof or you could consider selling your home to a company that can purchase your home ‘AS IS’ so you don’t have to make these costly repairs.
2. Foundation Issues:
The reason I list the roof and foundation 1 and 2 is because these are typically the most costly repairs. A house’s foundation is one of its most important structural elements. Foundation shifts or cracks can lead to a whole home separating. Often, walls in homes with foundation issues will crack or different rooms of the house will be out of level. All these issues pose safety risks for the resident and if not addresses immediately, could lead to the home being condemned as unlivable. Although foundation issues can be daunting, they are definitely fixable. Additionally, reputable companies can guarantee lasting repairs. However, it will cost you; be prepared to spend $10,000 to $30,000 on a major foundation repair job. Look for cracks in the house’s concrete slab, watch out for rooms not in level and check the exterior foundation for crumbling. If there are apparent foundation issues, any real estate agent or conventional lending is out of the question. In fact, even most home buying companies will run from the situation.
3. Electrical Issues:
Most commonly found in old homes that haven’t updated the electric in decades, but electric issues are not limited to the old knob and tube wiring. Electrical issues typically come with red flags: Circuit breakers are designed to trip when a circuit is overloaded. By shutting off the electrical supply, the breaker prevents wires from overheating and potentially starting a fire. Even in new constructions electricians can take shortcuts that could potentially put your home at risk. In some cases, these contractors are pressured to use cheap materials or work very fast in order to sell homes fast and cheap. This can lead to electrical systems that are not very safe. Watch out for flickering lights, poorly placed outlets and outlets that are hot to the touch. In cases where full home re-wiring is required, the cost could be upwards of $4,000. This cost could damage the profitability of your investment property – so make sure to check the house thoroughly.
HVAC stands for heating, ventilation and air conditioning. Such a simple definition but the HVAC can be the most unexpected expense on this list so far because of its unexpected nature. If a unit isn’t properly maintained, your furnace and air conditioning units, could require expensive repairs or die altogether. A gas furnace alone costs between $1,000 and $2,000 at Home Depot, but you’ll pay between $4,000 and $8,000 for a professional furnace installation. There is nothing more frustrating because it doesn’t necessarily happen over time (Like a leaky roof or cracking foundation) but it becomes priority A very quickly.
Sewer pipes are typically buried several feet below your front lawn, but from time to time, roots from trees growing close to your home can clog or damage them. Unfortunately, your city is only responsible for the sewer pipes up the end of the street. Once it’s under your front lawn, it’s your responsibility to deal with any problems that may arise. Repairing or replacing a broken sewer pipe can cost about $1,000-2,000, although the cleanup can cost a lot more. If you do have a broken pipe, call a professional sewer and drain company to repair it. Otherwise, make sure to have them come out once a year to clear the line to avoid breaks from happening.
If you have an inspection and find yourself with costly repairs in any of these 5 areas, you are likely looking at a huge bill to fix the damages. For most home owners, this would be the end of the home selling process. Although your home will need to be repaired before you could sell it conventionally, there are some leading home buying companies in the U.S. that will still purchase your home if it needs a major repair. Finding the right company that will buy your home “AS IS” is very important in this situation, unless you are planning on breaking out the wallet and writing a large check for the expenses.