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Spring is finally here, and many homeowners are getting their houses ready for sale. One of the first questions that comes to mind is, what important repairs do I need to make before selling our house? Before going down this rabbit hole, there are a few things to consider. Major repairs to areas such as the kitchen, bathroom, exterior paint, interior paint, flooring and others can cost a substantial amount of money. Do you have the cash on hand to fund these home repairs?

To Repair, Or Not To Repair, That Is The Question

According to Dave Ramsey, financial guru and bestselling author, the average return on investment (ROI) for a new kitchen is anywhere from 54% – 81%. Factors that contribute to higher returns include high-grade finishes, appliances, new cabinets and others. Finding the right contractor is also key in this process. Shoddy work or low-grade items can lead to a drastic decrease in your ROI. Additionally, should you need to sell a house fast, doing a brand new kitchen can take anywhere from two to four weeks, once you’ve found the right contractor!

Curb appeal is a huge factor for potential buyers, as it is their first impression of your property. A fresh exterior paint job is critical. Depending upon the size of your house, a new paint job starts around $4,500! This cost does not include the interior. Don’t forget to tune up the landscaping, as well.

Are Home Improvements Tax Deductible?

The short answer is no, however there are still some tax benefits. Improvements made to your home can increase the cost basis in your property but cannot be used as a write-off. For example, Susie purchased her home for $250,000 and invested $40,000 in improvements while owning the home. She sold the property for $350,000. Her “stepped-up” basis in the property goes from $250,000 to $290,000. Her gain on the property is $60,000. The IRS will exclude up to $250,000 in gains (or $500,000 married filing jointly) if you have lived in the home two of the five years prior to the sale and have not taken the exclusion on another home within two years.

Now For The Nitty Gritty

You are under contract with a buyer, and they schedule the inspection. The results come back, and you find out the roof needs replaced and the furnace is shot. You are looking at $8,000 – $12,000 for a new roof and $2,000 – $4,000 for a new furnace. You have negotiated the price as tightly as you can and spent all your extra cash on remodeling. The deal is dead.

Consider A Smarter Option

Is all this number crunching and scheduling making you rethink your plan? Another option to consider is selling your home to Summit All Cash. Repairs, none. Contractors, none. Inspections, none. Realtor fees, none. Closing costs, none. Summit All Cash will conduct a no obligation property assessment and make you a same-day cash offer. Sell your house fast for cash with no stress! Contact us today at (719) 394-3573 to schedule an assessment with our team — you won’t have to lift a finger!

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