If you want to sell your home, you can either sell it as a fixer-upper or a newly renovated home.
Both options have their advantages and drawbacks. Therefore, it is imperative you know which suits you best and opt for it.
Simply, selling a fixer-upper attracts several buyers because of the house’s price. More so, it saves you the cost of repairs.
However, making repairs makes your house more appealing to your audience, and you stand a chance to maximize your ROI, but it takes a lot of your time and money. Below, we will consider the different factors before deciding how to sell your home.
Factors You Should Consider Before Investing in Making Repairs To Your Home In St. Petersburg Florida
If you want to make the decision of selling a house as it is or making repairs, some external factors can help make your decision.
What Is The State Of The Real Estate Market In St. Petersburg Florida?
The St. Petersburg real estate market is affected by several factors. These factors include St. Petersburg city government policies or subsidies, the economy, interest rates, demographics.
Each factor shapes the local real estate market by influencing the real estate’s demands and supply.
For example, a good economy means more money in circulation. More money in circulation means more purchasing power which means you can refurbish your house before the sale.
However, if it is the other way round, selling it as is might be the smart way to go.
Nonetheless, this isn’t a foolproof method. The reason is the real estate market, just like every other market, has other anonymous strings controlling it.
Regardless, these factors mentioned above and below would make for a much more accurate prediction. Hence, you will have a better foresight of the market which you can use to decide how to sell your house.
What’s the Condition of Competing Homes for Sale in The St. Petersburg Area?
The houses up for sale also affect how the market would view your property. The real estate market is so unpredictable.
For instance, your house could have a lot of appeal to the market today, and by tomorrow it is no longer desired.
It is hard to predict which type of house the market wants. Hence, if your house isn’t the house in demand, refurbishing it might just be accumulating costs for a property that won’t sell soon.
Therefore, it might be advisable to put a cheaper house (which, in this case, means the fixer-upper) in the market to compete with the other houses in the market like new construction.
What’s the Likelihood of a Return on Your Investment If You Sell As-Is Vs Renovate Your Home in St. Petersburg?
Return on your investment, known as ROI, is the calculated profit made on investment as a percentage of the cost of the investment.
ROI (Return on your investment) is Profit – Cost/ Cost. Before you decide to sell your home as it is, compare the profit with selling it when refurbished with the cost of the house.
Beyond the price you bought the house, other costs include any form of advertising, any repairs, taxes, etc. The one that ensures the maximum ROI, regardless of all the costs, is the best option.
Workload and Time
Another crucial factor to consider before repairing your house for sale is, do you have the time or the capacity for the workload. When you decide to renovate your property before you sell it, a lot of manual and physical work will need to be done.
Beyond the fees and expenses, you will likely need to sacrifice your time and work a little more on your home. If spending extra time or working extra isn’t appealing to you, selling your home as is, could be your go-to option.
Does The Location and Neighborhood of Your Property In St. Petersburg Florida Matter When Selling?
Some houses sell better in some locations than in others. As a seller, being aware of your property location and neighborhood in the St. Petersburg area is vital.
In a neighborhood with no space for expansion, a fixer-upper might appeal to a larger audience than it would if it were in a newer neighborhood of St. Pete.
Understanding your location is the first step to selling your house.
Do Homebuyers Want Fixer-Uppers In St. Petersburg Florida?
According to the Bank of America 2021’s report, 42% of prospective buyers usually go for fixer-uppers compared to new construction homes. Most homebuyers prefer fixer-uppers because it will likely be cheaper than buying new.
Most homebuyers also prefer to make the changes inside the property themselves, which means they would rather have a fixer-upper than a newly renovated home.
Conclusion
The options listed above have their pros and cons. The choice between selling your St. Petersburg home As-Is or as a renovated home is dependent on the real estate market we are in at the time .
If you are considering selling your home in St. Petersburg and need consultation on whether to sell As-Is or as a newly renovated home.
Give us a call at (813) 666-5765 or you can fill out the form below.