Hi,
I know this is an investment-centric website, but just wanted to get people's opinions on something.
– We are considering selling our PPOR and our house may need restumping…
– Do you think it is worth restumping before selling, or sell as is whilst disclosing that fact?
– If we did restump, do you think we would get our money back?Thanks,
NevilleHi Neville,
Thanks for your post. You ask a great question!
When weighing up whether to proceed or not, there are two questions I would consider:
1. How much of the cost will be recouped through a higher end sales price? That is, what is the price differential b/w selling ‘as is’ and ‘selling fixed’? Your real estate agent should be able to give you some advice here.
2. Will doing the work help to sell the property faster?
Although #1 is straight-forward, #2 can actually help by cutting down on the interest on any property loan since the property will hopefully sell quicker.
My gut feel would probably be to sell ‘as is’ but be happy to negotiate a discount on the asking price as a contribution to the works for the new owner. This way you don’t have the worry or cost, and the risk of the restumping causing other problems (cracks needing replastering etc.) is avoided.
Finally, you could always try to sell ‘as is’ now and if it doesn’t sell, do the works and remarket in a few months time at a higher price.
All the best,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Neville,
What is the value of the house?Is it high set or low set?Are the current stumps into a slab?If not, and you only need a few stumps replaced in one corner say, you may be surprised that it doesn't cost as much as you thought.Is rest of house in good condition? Who will be buying your property, a family who don't want to do any work , or a renovator who will gut it? The renovator wont care, but the family will run a hundred miles.If someone is going to raise and build in under, it would be wasted money.
It all depends on the value of the house and the cost of the job in my opinion.
Regards
LWThanks for your replies. Some additional info: Approx quote for restumping: $7K.
– Approx property value $500K.
Cheers,-Neville
Hi Neville,
If it were my house I would do it. If you can get the house re stumped for 7k plus fix ups then go for it. Nothing turns people off a home more than a dodgy floor. If your target market is a home owner rather than investor you will be selling on emotion and your house will just be a little harder to love in it's current state.
Cheers
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