When someone considers selling their home, their initial interests are how much, how soon and what will it cost? Outside of the commissions and seller closing costs, there is much more to consider. The age of a property typically provides many simple answers before you list your home.
Here’s a few things to consider when it comes to selling your home:
How old is the roof?
How old is the air-conditioner?
Are there any obvious foundation issues?
How old is the water heater?
Are there obvious repairs that need to made?
A new roof for a 2,500 square foot home can average around $10,000.00. The cost to replace a 4 ton air-conditioner can easily cost $4,000.00, and a new water heater installed will cost you about $1,000.00. Foundation issues can be as little a $2,000.00 and can quickly escalate to much more, depending on the findings.
Too many sellers think these issues can be overlooked or even ignored when selling. While it is possible to negotiate the cost of a broken water heater, buyers expect major items to “function as intended.” If the air-condition is 18 years old, but still blows cold air then odds are you won’t be installing a new unit for the buyer. But if it’s set on 72, and it’s 85 degrees in your house then be prepared to spend some money or have it deducted from your proceeds in one form or another. The same can be said for roofs. A 30 year roof in Houston might be able to exist on your home for 30 years but there is virtually no chance it’s protecting your home the way it was intended. A 30 year roof typically last 20-25 years. A buyer may run into problems when it comes to getting insurance if your roof is “too old.” Additionally, the lender may also have an issue and call for a “lender required repair”, especially if the buyer is using a VA or FHA loan.
The point is, be smart about what you really know is wrong with your home prior to putting it on the market. Be realistic about your financial expectations. Talk to roofers, HVAC technicians, structural engineers, plumbers and professional Realtors prior to assuming if you sell for X you’ll net Y. Understanding the scenarios and how to negotiate repairs will help you set your own expectations.
Comments(13)