By Justin Liva, Mojo House BuyersI buy houses in any condition, and that includes fire-damaged and unlivable ones. Some need a new roof or a furnace. Others need everything: kitchen, baths, electrical and windows. I rarely buy houses that are already in great shape.
So the question I talk through with owners is simple: fix it up first, or sell it the way it is? There's no single right answer. Here's how I'd think it through.
A pricing mistake I see often
One mistake sellers often make isn't about repairs at all. It's about comparing the wrong houses.
Here's a version of a conversation I have often. A renovated house down the street sold for $700,000. Based on that sale, the owner I'm talking to wants $600,000 to $625,000 for theirs. The problem is that their house needs a full renovation, easily $150,000 or more of work. Once you account for that, and for the time and risk of doing it, the house as it stands is worth closer to $400,000.
I understand why that gap is hard to accept, since the renovated house down the street is the one you can see. But a buyer who pays top price for a renovated house is paying for a finished product: new systems, new finishes and no surprises. In that example, the gap between $700,000 and about $400,000 is far more than the $150,000 repair bill, because someone has to take on the project, pay to carry it and accept the risk that the walls hide something worse.
Online estimates make this worse. An automated valuation has never been inside your house, so it can't tell a 1950s kitchen from a new one. I go into that more in my guide on the Zillow Zestimate and your house.
When repairs pay off
Some small jobs can be worth doing before a listing:
- Small fixes a buyer's inspector would flag, like a dripping faucet, a broken outlet cover or a loose handrail
- Paint in tired or loudly colored rooms
- A deep clean and clearing out clutter
They cost little next to a renovation, and they can help a house show like it's been cared for. If your house needs only this kind of work and you can wait a few months, listing it with an agent will usually get you the most money. I tell sellers that all the time.
When repairs don't pay off
Bigger projects are a different story. A full kitchen or a new roof is a big check to write on your way out, and repairs can grow once walls are opened. Old wiring, a cracked drain line or water damage under a floor can turn a planned renovation into a much bigger one.
Ask yourself honestly:
- Do you have the cash, or would you borrow to renovate?
- Can you oversee contractors, permits and inspections?
- Can you keep paying the mortgage, taxes and utilities while the work drags on?
- What happens if the project runs over budget by a third?
If those answers make you uneasy, selling as-is is a reasonable choice, not a failure.
What "as-is" actually means
Selling as-is means the buyer takes the house in its current condition and you don't agree to make repairs. It doesn't mean you can hide problems you know about. Disclosure rules still apply, as my seller disclosure guide explains, so talk with your attorney about what you need to tell a buyer.
One New Jersey requirement applies no matter the condition. The Department of Community Affairs says that since January 1, 2019, the state fire code has required a certificate of smoke alarm compliance before anyone sells, leases or changes occupancy of a one- or two-family home. You get it through your town, and it's valid for six months. Your town may also require its own resale inspection. My guide to certificates of occupancy and smoke certificates covers both, and the best first step is to check with your town.
How I price a house that needs work
When I make an offer, I start with what the house should be worth once it's fixed, based on comparable renovated sales nearby. Then I subtract a realistic repair budget, the costs of buying, holding and reselling, and enough margin for the project to make sense. I want the deal to work for you and for me, and if I'm wholesaling, for the buyer after me. My guide on how investors price houses walks through that math step by step.
That analysis used to take me hours per house, which is why I built Appraize.ai to give me a quick first read on whether a deal works before I dig deeper.
A cash offer won't match the renovated comp, and it shouldn't. What it gives you is a sale without repairs. Leave behind whatever you don't want, and I handle the cleanout after the sale. There's no commission, the offer is free, and I close when you're ready. Whether I cover the closing costs or you do is something we work out deal by deal.
If your house has been listed for a while without selling, my guide on why your house isn't selling may explain what's happening. When you'd like to compare options, ask for an as-is offer.