To fix or not to fix cracks before selling investment property

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To fix or not to fix cracks before selling investment property

Bernadette Andrews
Realtor · Jacksonville, FL · Member since 2022 · 8 posts · 1 vote

Hello! I am hoping to get some advice on about an investment property we're about to put on the market in VA. The area has very low inventory and our tenants are moving out in May so we believe now is the tell to sell. Here's the concern...there are some settling cracks and ceiling damage that are quite visible in several areas of the home. In order to address them, we'd have to delay the sale until the tenants vacate at the end May and repairs may delay listing until sometime in June. On the other hand, we have an opportunity to strike while the iron is hot. Please advise on the best approach to take and whether these cracks could hinder the sale of an otherwise great home in the best school district with no other homes for sale right now. Thank you so much for the help thinking this through.

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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y

Before seeing the pix I was preparing to say nobody cares about cracks in my experience. But those cracks look too much like water damage, even if they aren’t. Spend 2 days and $2-500 and get it fixed. 

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  • Jasmine Delves
    Denver, CO · Member since 2022 · 201 posts · 77 votes
    4y

    If I was personally looking at this property to buy it, I might be put off by the cracks. It's difficult to say whether it will hinder the sale though, as it's really dependent on the demand, new buyers and whether they are willing to overlook things like this. 

    For me, a delay of a few weeks seems like it would be worth it for peace of mind. I'd rather get the house into a really great condition to start with, rather than wonder if it would have sold faster/for a better price if certain things had been done.

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    4y

    Before seeing the pix I was preparing to say nobody cares about cracks in my experience. But those cracks look too much like water damage, even if they aren’t. Spend 2 days and $2-500 and get it fixed. 

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  • Austin F.
    Investor · MI · Member since 2015 · 227 posts · 478 votes
    4y
    The first one, with the stairs visible, is almost certainly water damage.

    The others can be fixed by a drywall guy really easily, shouldn't need to move the tenant out as long as they have proper dust collection.
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  • Cody Hunter
    New to Real Estate · OR · Member since 2021 · 66 posts · 23 votes
    4y

    @Bernadette Andrews Absolutely fix the Sheetrock! It will erase any concern for your buyer and certainly provide a better return. 

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Who are you catering to? This will throw off first time home buyers but not investors. See what it's gonna cost to fix it and weigh out your options. Do comps show any homes sold recently in similar condition selling for top value? 

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  • Michael Dumler
    Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
    4y

    @Bernadette Andrews, I agree with others. If you're on good terms with the tenant I would approach them and ask if the cracks can be fixed before their lease expires. If you list the property with the cracks and go under contract, an inspector is certainly going to note the concern which may turn the buyer off or they'll use it as leverage to negotiate some sort of seller concession. Best to take care of the problem now. Hope this helps! 

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  • Bernadette Andrews
    OP
    Realtor · Jacksonville, FL · Member since 2022 · 8 posts · 1 vote
    4y

    Thanks so much everyone. Totally makes sense to address first and do it before the tenants move out. Really appreciate being part of this community of pros to help me make better/smarter decision. Thanks a bunch. 

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  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    4y
    Quote from @Bernadette Andrews:

    Hello! I am hoping to get some advice on about an investment property we're about to put on the market in VA. The area has very low inventory and our tenants are moving out in May so we believe now is the tell to sell. Here's the concern...there are some settling cracks and ceiling damage that are quite visible in several areas of the home. In order to address them, we'd have to delay the sale until the tenants vacate at the end May and repairs may delay listing until sometime in June. On the other hand, we have an opportunity to strike while the iron is hot. Please advise on the best approach to take and whether these cracks could hinder the sale of an otherwise great home in the best school district with no other homes for sale right now. Thank you so much for the help thinking this through.


     Personally, with how much time and money it would cost I would not do it. I would price it at a price that I know I’m willing to come down a little bit if they were to negotiate. If you start working on one project it can always lead to another.

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  • Dwayne Poster
    Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
    4y

    I wouldn’t impose on the tenants. 

    Looks like you have a moisture issue, and that will put off buyers. I’d do an inspection now and establish a game plan. If the plan includes drywall work, schedule it up for first week of vacancy. If your roof requires repair, decide which fits better, repair or disclosure and discount. If buyers are waiving inspections in your market, you could forgo the disclosures.

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