Owners of distressed properties often wonder: “Should I do some renovations or sell my house fast in Atlanta as is?” And if your property is damaged, you may be wondering if repairs are even worth it.
For some, the decision hinges on finances. Others care about location. In any case, understanding the pros and cons of renovating versus selling is important, and this knowledge will help you make an informed decision that’s in line with your goals.
The Burden Of A Distressed Property
Owning a home has long been considered part of the American Dream, but home ownership comes with responsibilities and costs. And when your home is a distressed property, keeping it habitable can put a big strain on your finances.
Homeowners typically spend between 1% and 4% of their home’s value on annual maintenance and repairs. So, for a $200,000 home, that’s $2,000 to $8,000 yearly. However, distressed properties cost more to maintain, especially if they’re in rough shape.
Deciding Whether Or Not To Renovate?
Assess Your Home’s Condition
Can your home be renovated? Will you need to make repairs before starting renovations? If so, the cost of renovating could be higher than expected.
Start with an appraisal of your house. Ask yourself: ”If I renovate, what else is needed to bring this place up to code?”
If you’re renovating more than 50% of your home, complying with current building regulations is especially important. You could need new wiring, plumbing, or insulation, all of which raise the cost of renovating.
Before you put money into renovations, you need to calculate the risks and returns. Will renovations increase the property value? Will this boost in value exceed the total cost of materials, labor, permits, and other expenses?
Often, the final cost is more than the initial estimate, so don’t rule out a lower return on investment or even a net loss.
The Emotional Toll Of Renovating
Along with being expensive, renovations can be emotionally draining. Managing contractors, adhering to building codes, living in a construction zone—all these things can stress you out. In short, the personal cost of renovating can be substantial.
Why Selling Your House As Is Can Be A Smart Move
Given the financial and emotional burdens that come with renovating a distressed property, many homeowners choose to sell to cash home buyers in Atlanta instead. But before you go this route, you need to know why it’s advantageous.
Advantages Of A Cash Sale
Cash transactions are fast and simple, so you don’t need to wait for mortgage approval or go through lengthy negotiations. This is why it’s a good option for sellers who need to resolve financial issues urgently and those who want to move quickly.
Avoid Financial Strain
Selling as is to a cash buyer means you won’t need to spend on renovations. Imagine spending tons on renovations only to see they didn’t add much resale value.
Market Fluctuations
The real estate market is always fluctuating, so your renovations may not get what you expected (in terms of asking price). Specifically, a market downturn can offset the value of improvements.
But if you sell quickly to a cash buyer, when the market is in good shape, you don’t have to worry about this.
Make Your Decision Today
Are you sick of the costs and effort required to maintain a distressed property in Atlanta? Consider reaching out to Diamond Equity Investments. Our team specializes in fast, all-cash home sales, and we buy houses in Atlanta in any condition. No commissions or closing costs!
