Most North Carolina homeowners who own a fixer-upper hesitate to sell, thinking they’ll barely make anything once they close. While this concern is valid, in most cases the outcome is far more promising than they anticipate.
Can You Sell a House That Needs Repairs in North Carolina?
Yes, you can sell a house that needs repairs in North Carolina. However, you’re still required to disclose known issues to the buyer.
If you go the as-is route, your pricing should be based on your home’s condition, not the same amount you paid for it a few years back. Similarly, you can’t base your pricing on your neighbor’s listing when they have a well-kept home. Home sellers who price strategically often profit more than those who spend money on unnecessary repairs first.
Still, selling a house that needs repairs in North Carolina doesn’t mean you can skip disclosure. The law requires you to disclose known material defects in your home. That said, you need to fill out the Residential Property and Owners’ Association Disclosure Statement before listing.
Should You Make Repairs or Skip Them?
Deciding whether to repair is tough if you don’t know what to consider. Here’s what North Carolina sellers typically factor into their decision.
When You Should Skip Repairs
- Not enough budget for repairs. Even if some of your home’s issues are fixable, if you lack the budget for repairs, you’re better off selling as-is. This is a much better move than burying yourself in loans just to make minor fixes.
- Need to sell fast. In most cases, homeowners who want to sell their North Carolina home are facing life changes that prompt them to sell fast. Situations like divorce or medical emergencies mean there’s no time to waste.
- Inherited a property you don’t want. There are out-of-state heirs who want nothing to do with a family or vacation home they haven’t been to in years. Selling as-is may be the better option.
- Moving out of state. If you’re relocating for a job or a family emergency, you definitely don’t have time to sort things out with your old home.
- The house needs major structural repair. Major foundation repairs or water-damaged homes are quite complex to deal with. Not to mention, they’re also very expensive.
- You’re in a seller’s market. If homes are selling fast in a seller’s market, the demand for your home may outweigh its issues.
- The process is too complicated. Some sellers aren’t cut out for a complicated sale process. It may be that their stress threshold is low or their plate is already full.
When You Should Make Repairs
- The market is competitive. Currently, the North Carolina real estate market is highly competitive. This means buyers have more options, so it’s much harder to sell a house that needs repairs as-is.
- The buyer won’t secure financing if you don’t make the repairs. This particularly applies if your buyer is taking out an FHA or VA loan. These government-backed mortgage programs are quite strict about their requirements. FHA and VA loans allow cosmetic issues, but require the home to be structurally sound and safe.
Home Improvements When Selling a Home That Needs Repairs in North Carolina
There’s no need to make significant renovations to your home just to sell it fast. Sometimes, minor improvements that don’t break the bank are all you need.
Curb Appeal Updates
The main goal is to make your property look good from the street because this attracts more potential buyers. Remember, buyers form their opinions at first sight. Here are some updates you can make without stretching your budget.
Landscaping and exterior touch-ups
If you have a power washer gathering dust in your garage, now’s the time to put it to work. Power wash your whole driveway as well as your exterior walls if there is visible grime. Mow your lawn and trim your hedges so your property doesn’t look like it’s been neglected for years.
Front door and entryway upgrades
You don’t have to replace your entire door or renovate your entryway to make it appealing. In fact, a fresh coat of paint will do the job.
Buyers lean toward earthy and moody front door colors, so definitely take them into consideration. Beyond color, replace the hardware if it’s already dated or no longer working properly. Opt for matte black, aged bronze, or brushed nickel because they work with most design styles. For a more welcoming and homey effect, you might also want to flank the doorway with potted plants.
Interior Updates
To hold the buyer’s interest in your home, you also need to make high-impact but affordable updates to your interior. The goal is to help them picture their family inside your home, especially since it is a fixer-upper.
Paint and flooring refreshes
Just as you did with your front door, your walls would also benefit from a fresh coat of paint. Cover up those scratches or your toddler’s doodle on the wall, as they prevent buyers from picturing themselves living there.
When choosing paint colors, choose warm white, true beige, cream, or soft taupe. These colors feel warm and more inviting. They’re also easier to style.
Aside from the walls, you may want to refinish your hardwood floor. According to the Remodeling Impact Report from the National Association of Realtors, the ROI for refinishing a hardwood floor is 147%. DIY is possible but takes skill and the right tools. Most sellers get better results from a professional.
Kitchen and bathroom updates
Gutting your kitchen and bathroom isn’t the only way to make both rooms presentable. For your kitchen, you just need the following updates:
- Replace cabinet hardware
- Replace the faucet
- Install a new backsplash if you have the budget
- Add cabinet lighting
For your bathroom, you can do the following minor updates:
- scrub the grout thoroughly
- Get the lights on a dimmer
- paint the ceiling
- replace outlets and switches
- Add additional towel storage
- Recaulk the tub
How to Price a Fixer-Upper Home in North Carolina?
Price your home based on current market conditions. That means you should subtract the estimated cost of repairs from your ARV (after-repair value). The ARV is your home’s value if you make the updates and ensure the home is move-in ready.
To figure out your home’s ARV, ask a real estate agent to do a comparative market analysis for you. They’ll look at what similar fixer-uppers are selling for and how much updated homes sell for. There are also ARV calculators available online for an estimate.
Following the pricing formula, here’s a sample of how much you should price a home with a $350,000 ARV.
$350,000 – $40,000 (in repairs) = $310,000
That said, you can still price slightly higher than this if your home is in a sought-after neighborhood in North Carolina. Location still has a high impact on your pricing, even if your home needs major repairs.
How to Sell a Home That Needs Repairs in North Carolina
Step 1: Get a Pre-Listing Inspection
A pre-listing inspection is necessary if you want to have more negotiating power. Since you already know the issues with your property from the pre-listing inspection, you can make strategic repairs and price the rest in.
On the flip side, if you don’t have a pre-listing inspection and the buyer’s inspector finds something worth negotiating, the buyer will try everything to get a price cut. Some will also ask for repair credits. Both situations will end up costing you more than you would want to give.
Step 2: Choose What to Repair
You don’t have to repair every single thing listed in the inspection report. Just choose which ones have a high ROI. If a repair won’t move your sale price significantly, just factor the repair cost into your pricing.
As shared earlier, there are home improvements you can make that don’t require major financing. Enhance your home’s curb appeal and ensure your kitchen and bathroom are updated because they matter more to most buyers.
Step 3: Price the Property Realistically
Don’t anchor your pricing to what you paid for your home or to emotional attachment. Remember, you see your home differently because of the memories you made there. Those memories don’t affect your sale price.
To set a realistic price, consult a real estate agent so they can run comps and arrive at an ARV. Then, calculate your selling price by deducting the cost of repairs from the after-repair value.
Step 4: Choose How You Want to Sell
Sell As-Is on the Open Market
You can sell as-is on the open market without committing to any repairs. However, expect that you’ll only net 60% to 95% of your ARV.
When you list, you have to be upfront that you are selling as-is. Make sure you include the following keywords to find the right buyers:
- Sold As Is
- Fixer-Upper Homes
- As-Is Home Sale
- Needs TLC
Make Repairs Before Listing
If you really have the budget and you’re not in a rush to sell, making repairs before listing makes more sense. First off, you’ll get top dollar by addressing all issues discovered during inspection. There will also be a wider buyer pool for you, and you’ll have the upper hand in negotiations. You’ll sell a lot faster than other fixer-uppers.
However, making repairs requires a lot of effort. You have to be hands-on and spend a good chunk of money to ensure everything’s done properly.
Going Straight to a Cash Buyer
North Carolina cash buyers like Cardinal Home Buyers are often your best option for a house that needs repairs. They can close a sale in as little as 7 days because they have cash ready and don’t need to wait for loan approval. You won’t have to worry about appraisal-required repairs, unlike with the traditional route. On top of that, they won’t ask you for surprise fees during closing, and they’ll even work on your timeline.
Step 5: Disclose Everything Required by North Carolin Law
The pre-listing inspection we suggested earlier is very handy in filling out North Carolina’s Residential Property and Owners’ Association Disclosure Statement.
The rule is: if you are aware of the issue, list it. Don’t try to hide it or describe it vaguely. If the buyer finds out you intentionally hid something from them, you could find yourself in court, and that’s the kind of headache you don’t want. Also, being honest in your disclosure signals to the buyer that you are trustworthy.
Step 6: Review Offers and Close
Review the offers thoroughly. Some offers have a lot of attached contingencies. For example, a financing contingency allows the buyer to back out if their lender doesn’t approve the sale. For a fixer-upper home, that’s very risky for you, since most lenders don’t approve loans for homes with major structural issues. There’s also an inspection contingency that allows the buyer to renegotiate after their inspection report comes back.
If you want to avoid all these hassles, there’s always the option to sell to a company that buys homes in Raleigh, NC, and other nearby cities like Cardinal Home Buyers. You won’t have to worry about repairs or contingencies when you choose this path, and closing happens much faster.
Frequently Asked Questions
Are you allowed to sell a house that needs repairs without making any repairs?
You can sell a house in North Carolina that needs repairs without fixing it. That’s called selling as-is and is common in the state. However, you are still expected to disclose your home’s condition; otherwise, you could face legal consequences. The cost of repairs needed should also be taken into consideration when pricing.
What repairs are required before selling a house?
North Carolina doesn’t legally require any repairs before selling. However, if your buyer is taking out an FHA or VA loan, they need to ensure your house is structurally sound. Foundation issues and major water damage would likely not make the cut.
How long does it take to sell a house that needs repairs in North Carolina?
This depends on the route you’re going to take. If you sell traditionally, it could take weeks or months before you get an offer. Meanwhile, if you sell to a cash buyer, closing can occur in as little as a week, depending on the company you choose.
Is a buyer allowed to back out after inspection on a home that needs repairs?
A buyer can back out after inspection on a home that needs repairs in North Carolina. Usually, this is possible if their contract has an inspection contingency. If you don’t renegotiate or address their concerns, they’re likely to back out of the sale. More and more sellers are leaning toward cash buyers who don’t require any inspection contingencies.
Is it possible to sell a house with foundation issues?
There’s no law prohibiting you from selling a house with foundation issues in North Carolina. The real challenge is that buyers who need financing to buy your home won’t get a lender’s approval. Your best bet would be to sell to a cash buyer who doesn’t flinch on any structural issue.
How much will you realistically get when selling a home that needs repairs?
The amount you’ll net after selling a fixer-upper in North Carolina depends on the selling option you choose, your location, and a few other factors. Generally, you’ll take home 60% to 95% of your ARV.
Key Takeaways: Selling a House That Needs Repairs in North Carolina
Many sellers with a fixer-upper home just don’t have a clear selling strategy, which is why they end up with less money than they should. If you plan on selling your fixer-upper this year, make sure you’ve weighed your selling options. Also, price realistically so your listing doesn’t go unnoticed in the Multiple Listing Service (MLS).
If you want to sell fast without repairs, Cardinal Home Buyers is ready to help. We’ve bought hundreds of fixer-uppers, so we won’t run from your property regardless of its current condition. Contact us at (919) 609-5173 to get a no-obligation cash offer from us!
