Are you considering selling your home but dealing with water damage? You may be trying to determine if it would be a better option to sell your home as-is or if you should repair it first. This decision is a lot easier to make if you know the benefits of repairing water damage before selling your home. Whether you have a little or a lot of water damage, this guide will provide you with all the information you need.
Should You Repair Water Damage or Sell Your House with Water Damage?
Water damage can be pricey to repair, but you worry that potential homeowners will take notice. To make the right decision, keep in mind the following points.
Will Selling a House with Water Damage Affect Profit?
Water damage may not seem like a huge deal, especially if it only covers small areas or areas not commonly seen. Since you are leaving anyway, it may seem unnecessary to repair. However, those who view your house will consider any damage, including water damage.
Most people will be more willing to purchase a home that fully meets their expectations. As they look for faults in the house, water damage could lower the value in potential buyers’ eyes. When this happens, it gives them a chance to negotiate a lower price rather than trying to snag the home before someone else does.
Prevent Future Damage
Have a professional take a look prior to selling. Even if the damage doesn’t cause any issues, it may be a cause for concern in the future. When looking for a professional, find a company that will not only repair the damage but prevents future damages. By having your home restored to its former glory, you can increase the price in order to cover the costs you put into the restoration.
Will Potential Buyers Notice Damage?
Water damage hidden from view may be unnoticeable at first glance. However, most people who are looking to purchase a home will take plenty of time to check through potential homes. Some may even have an estate valuation to find all of the hidden problems to knock down the price.
Even if an estate valuer isn’t taking a look, many customers will notice water damage. If you do have water damage, keep in mind that it could affect the pricing of your home.
Documenting Repairs Makes You a More Trustworthy Seller
After getting a repair done, keeping the process documented furthers your chance of getting a serious buyer. Documenting repairs can ensure that buyers can trust you have done your due diligence to get your house selling-ready. Keep track of every step you take to regulate the condition in your documents. Keep any receipts you have and include them with the document.
3 Options to Sell Your House with Water Damage
If you would rather not deal with the repairs prior to selling your home or need to sell your home quickly, there are some options to consider. Below we will discuss three different options to choose from to sell your house with water damage.
Sell to a Real Estate Investor
Difficult circumstances can happen in life where you may need to sell your home quickly. You may have seen billboards that say, “We buy ugly houses!” at some point in your life. If you don’t know, real estate investors purchase damaged houses.
Real estate investors will buy homes regardless of the condition of the home, which can be extremely helpful for many homeowners looking to sell.
Sell with a Real Estate Agent
Working with a real estate agent can be helpful when selling any home, but especially a home with damage. Because your agent only gets paid when your house closes, this gives them extra motivation to find a buyer for your home.
Sell It Yourself
Selling a house yourself has pros and cons, but it can be a mistake. Getting to set the price yourself is one of the main benefits. However, as the seller, you will need to be in charge of advertising and showing the house in addition to other processes needed to close.
Though you may save on commission costs, you run the risk of missing out on a chunk of money by selling a house yourself. On average, homes sold by owners earn $24,000 less than by an agent. A professional can ensure you sell your home for what it is worth.
What Does it Cost to Repair Water Damage?
It can be expensive to repair water damage, especially if it affects multiple areas of your home. Before determining whether or not to sell your house with water damage, it is a good idea to know how much it will cost you.
The average cost a homeowner spends to repair water damage is $3,187. Depending on the extent of your damage, it will likely cost somewhere between $1,000-$5000. If there is severe flooding or extensive damage, it may cost more.
Can You Sell a House That Has Mold from Water Damage?
One of the worst consequences of dealing with water damage is mold. Unfortunately, selling a home with mold can cause the selling price to take a hit. To give you an idea, even a home treated for mold can lower the value of a home by 3%. On the other hand, it can be costly to hire out to remove mold, affecting the overall gains.
Do You Need to Disclose Mold When Selling Your Home?
Yes, you must disclose mold issues when selling a house. However, the disclosure requirements may vary depending on your location. Not only does mold affect a house aesthetically, but it can cause serious health issues. It is estimated that 5% of Americans are allergic to mold, so it is important to disclose.
Will home insurance cover Water Damage and mold remediation?
It depends on your policy; however, many insurance companies cover water damage and mold remediation. You will have to check with your provider on the exact circumstances. Once you have an idea of what your cost out of pocket will be, make sure that you are financially able to cover it. On average, an insurance claim for water damage is around $11,098.
Conclusion
You have many options for selling a house with water damage. One option is to repair the water damage before selling to prevent a price decrease. Working with a professional real estate agent or selling your house to a real estate investor can assist in selling your house for what it’s worth. Before making any decision, consider getting a valuation to get the value of your home with water damage.