5 Things You Should Consider If You Are Thinking About Selling Your House in Indianapolis
If you are thinking about selling your Indianapolis house it is important that you are prepared. In this article, we’ve proposed 5 questions you should ask yourself to ensure it is the right decision.
Making Repairs. How Much Does It Cost to Get Your House Ready To Sell?
There are many factors to consider to determine the total cost of repairs before selling, with the age of the home being the single greatest determining factor.
American homes are getting older. Approximately forty percent of American homes were built before 1970, with a average age of 38 years. Considering homes built in more established areas of the country like the Northeast and the average age of a home jumps up to over 50 years. In general, homes built after 1985 are considered newer homes while homes built before 1920 are antiques. In between these two periods of time you will find your “old” homes.
Older homes, and antiques in particular, will require a great deal of repairs and updates. Old homes are typically associated with antiquated building practices and codes, hazardous materials and general wear and tear. These costs can quickly add up. If your home is an antique, you could be facing foundation and sewer problems which are very costly.
If your home is newer and in decent shape, it will likely only need a “refresh.” This typically includes new carpet, a fresh coat of paint and possibly new appliances and counter tops. If you house is older than 1985, you will likely go beyond the “refresh” and begin wading into remodel territory. Remodels typically include new carpet and paint but also replacing old utilities, like furnaces and air conditioners, water heaters, roof and siding, windows as well as whole kitchen and bathroom remodels.
All these repairs and updates make sense when trying to position your house to get the highest price possible and sell in the shortest amount of time. If this sounds like a lot of work and expense, you’re right. One option, if you are looking to sell your Indianapolis house fast, it to sell it direct to a real estate investor like Ittenbach Capital. We buy houses in “as-is” condition, no repairs or updates required. We prefer a house that needs a little TLC!
Below we outline typical costs associated with repairs and update. Note that the size of your house and age will likely affect these costs.
- New Roof: $5,000 to $10,000. Cost could be more if your house already has two layers of shingles. City codes and warranties limit roofs beyond two layers.
- Hazardous or outdated electrical: $2,500 to $6,500. Repairs can be simple but quickly add up if your house is older. Older houses, especially those older the 1955, are more likely to have outdated and hazardous wiring. If your house has what is know as “knob and tube” wiring or aluminum wiring, the house may need to be completely rewired.
- New Air Conditioner: $3,000 to $4,000. The average life span of a air conditioner is 15 to 18 years. The closer your unit is to its useful life, the greater the likelihood buyers will ask for a replacement as part of the real estate transaction.
- New Furnace: $3,000 to $4,000. The average life span of a furnace is 18 to 20 years.
- New Windows: $350 to $400 each. If your house has older single pane windows you may have to pay more for custom sized windows. Some retrofitting to the house framing and siding may also be required.
- Foundation Problems: $5,000 or more! Depending on the type of foundation your house has (brick, block or poured) and the extent of damage, we’ve seen repair costs upwards of $15,000.
- Mold Remediation: $5,000 or more! Mold remediation is fairly simple, but costly. The best way to get rid of Mold is to remove it and correct the moisture problem that caused it. Mold tends to grow upwards. If not caught in time, mold can quickly go from a basement to the attic. Whole house remediation is not something you want to deal with.
- Septic System: $10,000 to $25,000. If a repair to a septic system is a requirement as part of a real estate transaction, it can get costly. New septic systems tend to last between 15 and 25 years. If yours is older, special permits and city requirements will have to be met. This can delay closing for months and eat away at any equity you may have.
- Radon: $1,000: Remediation is fairly cost effective. If you live in the midwest, you can almost guarantee that if radon is being measured it will exceed minimal threshold of 4 pCi/L which is considered hazardous.
- Decks and Fencing: $500 to $2,500: Decks and fences need regular maintenance in order to prevent rot. Outdoor living is very appealing to buyers and will be on the inspection list if not property cared for.
- Plumbing: $500 to $5,000: If your house is older it may have lead plumbing which will need to be replaced. There have been a lot of advancements in plumbing materials over the years. PEX is a material used widely today. Certain types of plastic plumbing, pre PEX, are prone to cracking and leaks, same goes for galvanized plumbing.
- Chimney repairs: $1,000 to $3,500: We’ve seen a lot of issues with chimneys over the years. Most common problems include cracked or broken liners (older homes have terra-cotta liners that don’t age very well). These defects can lead to house fires. Additionally, brick and mortar in the fire box break down over the years.
- Termite Treatment: $750 to $1,500: Termites love wet wood. If you have moisture problems that penetrate to house framing you are inviting these little creates to take up residence. Depending on where you live, termites can live above or below ground. Here in Indianapolis, termites live below ground and treatment tends to be to the ground and foundation of the house. If you live in the south, they remain above ground and in the house.
- Termite Damage Repair: $2,500 to $5,000 or more: We’ve seen first hand the damage termites can cause. Depending on the extent of their stay in your house, repairs can add up quickly.
- Kitchen Remodel: $10,000 to $25,000 or more: These costs can vary widely based on size, grade of materials used and appliances you choose. If any structural, plumbing and electrical changes are going to be made it will add up quickly.
- Master Bathroom Remodel: $10,000 to $25,000 or more: Again, the total cost of the remodel will vary based on the materials you choose and if any floor plan changes are going to be made.
- New Siding: $10,000 to $20,000. Vinyl siding is the cheapest material you can use to spruce up your exterior.
- Improving Curb Appeal: $5,000 to $10,000: Improving your homes curb appeal can really boost the value on your home. Cutting back or removing over grown foliage, cutting in new mulch beds and planting trees and bushes will make a great first impression on potential buyers.
What Is Your Home Really Worth?
Determining the value of your home is as much an art as it is science. It takes an experienced professional, one who knows your market and current market trends while taking the time to throughly inspect the condition of your house, to accurately determine its true value. What you think your house is worth and what it will sell for can be vastly different numbers.
Many homeowners look at similar houses in terms of size, number of bedrooms and bathrooms and assume that their house will sell for the same price. This isn’t always the case. Factors like, recent renovations, immediate or future repairs, housing demand and interest rates can all affect how your house will perform on the open market. At Ittenbach Capital, we work closely with our clients to determine fair market value, taking into consideration external environmental factors as well as required repairs and updates. We work hard to understand our clients goals and build solutions that fit their unique needs; whether that’s a cash offer, joint venture or working with our real estate brokerage firm Ittenbach Realty.
What Does It Cost To Sell A House In Indianapolis?
In addition to any needed repairs as well as holding costs (insurance, property taxes, mortgage interest HOA dues and utilities to name a few), home sellers will likely face a number of other costs when selling their house with a real estate agent in Indianapolis. In some cases, homeowners will have to pay for additional marketing services. Additionally, many homeowners will hire professional cleaning services to keep the house in show ready condition. Others will pay for professional staging and even landscaping in order to make their home more appealing, especially if the house doesn’t sell right away.
Is It Better To List Your House With A Real Estate Agent Or Try To Sell It Yourself? What About Selling Your House Direct To A Real Estate Investor Or Professional Home Buying Company.
Once you’ve determined what your house is worth, adding up any repair costs, upgrades and staging as well as holding costs you will have a better understanding of current realities. From there it will be easier to determine which direction to go in.
If your house is in move-in ready condition and you are in a fairly hot or desirable area, working with a real estate agent may be your best option. You can try to sell your house yourself but fewer than 10% of retail sales occur without an agent. The thought of selling your house without an agent and avoiding 6% or even 7% commission is appealing but a bit misleading. Even if you list your house yourself, chances are your buyer will have an agent representing them. They will want their 3% to 3.5% commission. So you will likely only save about 3% going it alone. Moreover, if you’ve priced your house too low, you could be leaving money on the table. Remember, determining a homes value and right pricing a house on the market is as much an art as it is a science. It takes years and hundreds of transactions to get it right. One other thing to consider if you go it alone. Buyers’ perception of a no agent sale is that you have room to come down on price or in a desperate situation. Be prepared to get low ball offers and be able to negotiate without losing the buyers.
Every home is unique which is why it is so important to weigh all your options, carefully considering the current condition of your home and your sales expertise, before deciding how to sell your Indianapolis house.
A third option to consider is selling your house direct to a real estate investor or professional home buying company like Ittenbach Capital.
We take the time to get to know our clients and their unique needs. We will buy any Indianapolis house, in any condition and at any price. Avoid all the hassle of selling your house by selling it direct to us. No need to make any repairs or get your house ready for market. All our offers are for cash and we close when you are ready to close. We’ll even pay all your closing costs. Our sole focus is making the home selling process as easy and as hassle free as possible.
Ittenbach Capital is the Midwest’s premier home buying company. We are an A+ accredited business with the Better Business Bureau of Indiana, rated 5 stars by our clients. Click here to see why our customers love us.
Click here to get a fair market cash offer on your Indianapolis house fast.