Here’s what you can do if you’re putting your home on the market but you can’t afford repairs or updates.

If you’re planning on putting your home on the market but you can’t afford to make repairs or updates, you still have several options that will lead to a successful sale.

When conditions in the house have fallen into a state of disrepair, some sellers offer an allowance or discount on the home to entice buyers. In this situation, the seller agrees to take a financial hit for any issues the buyer finds. An allowance would be written into the buyer’s offer, and they’d then have to check with their lender about all the details regarding this clause.

Robert Romanian, the principal co-founder of Real New York, says this might be a good strategy if you’re having trouble selling your home or the buyer brings up the need for updates. The allowance amount may vary depending on the updates that are needed and the total price of the updates. According to Martin Eiden of Compass in New York City, your first step should be to get written estimates from contractors and then offer the allowance for the estimated amount.

From a seller’s perspective, we would present this type of situation like this: “We were considering updating the kitchen and baths but didn’t want to choose a color that the buyer may not want, so these are the estimates, and the buyer can choose the final colors and finishes.”

This is a solid strategy for two reasons. First, the buyers are capable of having a vision for the home, and they may be excited because they have the ability to choose the updates and colors to suit their tastes. Also, by managing the project themselves, they’ll gain peace of mind knowing that the repairs were done to their liking.

On the other hand, there are valid reasons against offering a home improvement loan. Chiefly, most buyers prefer a home that’s move-in ready. Depending on the scope of the work, they may need to take time off of work or endure the hassle of chasing down contractors. Depending on the market, it’s also possible that home improvements won’t even be necessary to entice buyers. In desirable neighborhoods with limited inventory, a home will sell even if it’s outdated.

There are other options to entice buyers if you can’t afford repairs or updates. The first is to simply price your home correctly and take into consideration the condition it’s in and the individual market, or how much the buyer will have to put down.

It’s also possible to put a little “sweat equity” into the home. It costs nothing to do a deep clean or declutter. In fact, you’ll get the biggest return on investment by repainting the interior with a fresh coat of white paint. White reflects light and makes rooms appear bigger. Also, it gives the appearance of a clean palette and allows buyers to imagine themselves living there. Best of all, you can do it all on your own!

If you have questions about this or any other real estate topic or are thinking of buying a home soon, don’t hesitate to reach out to us. We’d love to help you.