Should You Sell Your Home As-Is or Make Repairs First? A Rhode Island Homeowner’s Guide

By Joe Luca, REALTOR®

One of the questions I hear from homeowners who are thinking about selling is, “Joe, should I put money into fixing up my house before I sell it, or should I just sell it the way it is?”

My answer usually starts with two words: It depends.

I know. That’s probably not the answer you were hoping for. But after years of helping people buy and sell homes throughout Rhode Island and Southeastern Massachusetts, I’ve learned that spending money on a house doesn’t necessarily mean you’ll get that money back when you sell it.

Sometimes making repairs is absolutely the right decision. Other times, you’re better off leaving things alone and adjusting your expectations about the selling price.

The trick is knowing the difference.

Not Every Improvement Adds Value

Let’s say you’re considering spending $30,000 updating a kitchen before putting your house on the market.

Will that make the house more attractive to buyers? Probably.

Will it increase the selling price by $30,000? Not necessarily.

In fact, depending on the house, the neighborhood, and what buyers are looking for, you might only recover a portion of that investment.

I’ve seen homeowners spend money on improvements that made perfect sense to them but didn’t necessarily translate into additional value in the eyes of buyers.

That’s an important distinction.

What something costs and what someone is willing to pay for it are two very different things.

And nowhere is that more apparent than in real estate.

There’s a Difference Between Maintenance and Remodeling

Before deciding what to fix, I like to separate repairs into two categories.

The first is maintenance. We’re talking about things like leaking faucets, clogged gutters, damaged siding, peeling paint, broken fixtures, and other items that suggest a house hasn’t been properly maintained.

The second is remodeling. New kitchens, updated bathrooms, finished basements, new flooring, and other improvements that might make the property more appealing.

Here’s where I think some sellers get into trouble.

They’ll spend thousands of dollars making a bathroom look beautiful while ignoring something relatively inexpensive, like clogged gutters or an exterior maintenance issue.

Buyers notice those things.

And when buyers start noticing maintenance concerns, they sometimes begin wondering what else might be wrong with the house.

That doesn’t mean there actually is anything else wrong. But perception plays a role in how people evaluate a property.

I’d rather see a homeowner address a handful of legitimate maintenance concerns than spend a fortune on cosmetic improvements that may not generate a reasonable return.

Buyers Don’t All See the Same House

Here’s something else worth remembering.

Two buyers can walk through the exact same property and come away with completely different opinions.

One buyer might love a large backyard gazebo. They can picture summer evenings entertaining friends and family.

Another buyer might look at that same gazebo and think, “I’d rather have the extra yard space for the kids.”

Neither buyer is necessarily right or wrong.

They’re simply looking at the property through the lens of their own needs.

The same thing happens with kitchens, bathrooms, finished basements, landscaping, and just about every other feature of a house.

That’s one reason I caution sellers against making major changes based on the preferences of one prospective buyer.

You don’t want to spend $20,000 solving a problem that the next buyer doesn’t think is a problem at all.

What Does Selling As-Is Actually Mean?

There’s a misconception that selling a house “as-is” means you can simply put it on the market, walk away from any responsibility, and let the buyer deal with everything.

That’s not quite how it works.

Generally speaking, selling as-is means the seller is offering the property in its existing condition and doesn’t intend to make repairs as part of the transaction.

But it doesn’t eliminate applicable disclosure obligations, prevent a buyer from conducting inspections, or guarantee that the buyer won’t attempt to negotiate after discovering something concerning.

And depending on the buyer’s financing, certain property conditions could still become an issue.

For example, a buyer using FHA or VA financing may encounter property-condition requirements that need to be addressed before the loan can close.

So while selling as-is can make sense, it’s important to understand what you’re agreeing to and how that decision may affect your pool of potential buyers.

Sometimes the Best Decision Is to Do Nothing

That might sound strange coming from a real estate agent, but hear me out.

Suppose you’re selling a house that hasn’t been updated in 25 years.

The kitchen is dated. The bathrooms are dated. The carpeting has seen better days.

You could spend $75,000 or $100,000 renovating the property.

But what if the most likely buyer is someone who wants to renovate it to their own taste anyway?

You may be better off pricing the house appropriately and allowing that buyer to make the improvements.

I’ve worked with buyers who would much rather purchase a home at a lower price and choose their own finishes than pay a premium for somebody else’s remodeling decisions.

Of course, the property still needs to be priced realistically.

You can’t expect buyers to pay fully renovated prices for a house that needs substantial updating.

That’s where a careful market analysis becomes so important.

The Rhode Island Factor

Our housing stock here in Rhode Island is interesting.

We have everything from historic homes and older multifamily properties to mid-century ranches, raised ranches, Capes, colonials, and newer construction.

A house built in 1955 in Cumberland isn’t necessarily going to be evaluated the same way as a newer colonial in Smithfield or a historic property on Providence’s East Side.

Buyers have different expectations depending on the neighborhood, age of the property, price range, and available inventory.

And while housing inventory can influence how much buyers are willing to overlook, I wouldn’t advise anyone to assume that a tight market means condition no longer matters.

It does.

The question is how much it matters for your particular property.

That’s something we need to evaluate using comparable sales, competing listings, and the condition of the house itself.

Before You Spend Money, Ask These Five Questions

When I’m advising a homeowner who’s preparing to sell, these are the questions I want us to consider:

1. Is this a repair or an improvement?

Fixing something that’s broken is different from replacing something simply because it’s outdated.

2. Will this issue prevent a buyer from obtaining financing?

Some property conditions can complicate a transaction, particularly with certain mortgage programs.

3. Will the repair make the house easier to sell?

Sometimes the benefit isn’t a higher selling price. It’s attracting more buyers, reducing objections, or avoiding delays.

4. What will the repair cost, and how much value might it actually add?

We need to look at the numbers rather than assuming every dollar spent comes back at closing.

5. What happens if we don’t do it?

Maybe the house sells for less. Maybe it takes longer. Or maybe the repair makes very little difference.

That’s what we need to figure out before you start writing checks.

My Advice? Don’t Start With the Contractor. Start With a Plan.

If you’re thinking about selling your home, I’d encourage you to resist the temptation to start making improvements before you’ve had a conversation with a knowledgeable real estate professional.

And I’m not talking about someone who simply walks through your house and tells you to paint everything gray and replace the countertops.

I’m talking about taking a serious look at the property, the market, the likely buyer, and your financial objectives.

Sometimes I’ll recommend a few relatively inexpensive repairs.

Sometimes I’ll suggest cleaning, decluttering, improving the landscaping, and leaving the rest alone.

And sometimes I’ll tell a homeowner that the house would benefit from more substantial work before going on the market.

There’s no one-size-fits-all answer.

The goal isn’t to make your house perfect.

The goal is to position your house to attract the right buyers and achieve the best possible financial outcome without spending money unnecessarily.

And those aren’t always the same thing.

Thinking About Selling?

Whether your home is move-in ready, needs a little attention, or hasn’t been updated in decades, I’d be happy to help you evaluate your options.

Before you spend thousands of dollars on improvements, let’s look at what your home might sell for in its present condition and whether making certain repairs would actually put more money in your pocket.

You might be surprised by the answer.

Joe Luca, REALTOR®

Serving Rhode Island and Southeastern Massachusetts

JoeLucaREALTOR.com

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