One of the first questions sellers ask me is whether they need to fix things up before putting their home on the market. The honest answer is that it depends. Your finances, your timeline, the condition of the house, and what's happening in the market all play a role. Below, I'll outline the three most common ways to bring a home to market and the factors that should guide your decision.

Three Ways to Approach Your Sale

Option 1: Sell the Home As-Is

Selling as-is means you don't make any repairs and you disclose every known issue. Sellers often go this route when money is tight, when repairs wouldn't pay for themselves, when they need to sell quickly, or when they simply can't take on the stress of a renovation.

The trade-offs depend on the market. When buyers have the upper hand, an as-is listing can sit longer, scare off serious buyers, and invite low offers. Buyers may assume something is badly wrong and see the home in a negative light.

When sellers have the upper hand, an as-is home with only minimal improvements can still draw offers, though they'll probably come in lower than you'd like and you shouldn't expect a bidding war. Buyers tend to hold back when they know they'll have to pour in a lot of sweat equity. Whichever path you pick, there's always an opportunity cost.

Option 2: Make It Turnkey and Aim for a Premium

A turnkey home is ready to move into with no major repairs needed. Depending on who's using the term, it might mean freshly renovated or even fully furnished. These homes usually sell for considerably more than fixer-uppers because the buyer doesn't have to lift a finger.

Turnkey properties attract buyers who'll pay for convenience as well as investors. This approach makes the most sense in high-demand areas where the surrounding homes are older and worn, or for sellers who like projects and are confident they'll get their money back.

In a seller's market, going turnkey may not be necessary, though it could spark a bidding war if nearby homes aren't as nice. In a buyer's market it's more of a gamble, but the right buyer may still pay extra for quality and attention to detail.

Option 3: Make a Few Smart Upgrades

Think new fixtures, fresh paint, painted cabinets, an accent wall, or a DIY backsplash. Renovations have been on the rise, too. A reported 76% of real estate agents said renovation activity increased during the Coronavirus pandemic, whether or not homeowners were planning to move.

In my experience, this is the safest choice in nearly any market. Most buyers aren't looking for perfection. They just don't want a home that will mean endless contractor headaches or one they can't live in. Small upgrades hit that middle ground, unless you're dealing with the kind of extreme situation where selling as-is is truly the only option.

What Should Drive Your Decision

Where the Market Stands

Market conditions determine who has the leverage when it comes to repairs.

  • Buyer's market: There are more homes than buyers, so properties sit longer and prices may drop. Buyers hold the cards, and sellers competing with each other are more willing to negotiate and make repairs. You may need to fix things up just to stand out.
  • Seller's market: Buyers outnumber available homes, as we saw in an extreme way in 2021. Homes sell fast, buyers compete and often pay more, and they rarely negotiate. Some will take a home as-is, get into bidding wars, or even skip the inspection. Repairs are generally minimal or unnecessary.
  • Balanced market: Supply and demand are about even. Buyers might offer at or below asking, request repairs, or ask to split repair costs, and sellers can accept or hold out for something better. A few minor repairs and upgrades are usually a good idea.

Your Home's Condition, and Your Competition's

Every home needs ongoing upkeep, and buyers often uncover a home's needs during the purchase process. Big-ticket items like the roof and flooring weigh heavily on overall condition. I find it helpful to think in three tiers:

  • Excellent: Well maintained, built with quality materials, a tidy yard, newer appliances, and major upgrades in recent years. These homes rarely need last-minute repairs.
  • Fair: Everything works, with normal wear and tear. Smaller upgrades like new appliances or paint, or larger projects like a kitchen or bath remodel or replacing an aging roof or HVAC system, can help you command a premium.
  • Poor: Many buyers would consider it unlivable. Think missing shingles or siding, an overgrown yard, very old appliances, electrical or plumbing problems, or water or fire damage. Here you can sell as-is (with full disclosure, and for less), make small cosmetic fixes (still below full value, but more appealing), or invest in major repairs like the roof, HVAC, flooring, and appliances, plus kitchen or bath remodels if the home feels dated.

Look at the neighborhood, too. If every nearby home is in excellent shape, going turnkey may be worth it. If nearby homes range from poor to excellent, getting yours to at least fair condition gives you a better chance at a reasonable sale.

Whether You'll Get Your Money Back

Repairs take time and effort, and not every project earns a return. Generally, projects fall into three groups.

Strong return potential: Projects that add square footage or make a home feel larger, improve curb appeal, add style, or cut future maintenance. Examples include opening up the floor plan, finishing the basement, replacing the garage door, painting the exterior, updating kitchen and bath fixtures, installing hardwood floors, and replacing the roof or HVAC.

Roughly break-even: Easy projects that still add value. Neutral interior paint costs a weekend or a few thousand dollars and is usually worth it. HomeGain's 2012 report on top DIY improvements for sellers tied interior painting to roughly $2,000 in added value, and that figure may be higher today. Updated knobs, pulls, and light fixtures are inexpensive and add a bit of value as well.

Weaker return potential: Some features appeal to the owner more than to buyers. A pool can turn buyers off because of upkeep and lost yard space, and according to Homelogic, an in-ground pool adds no more than 7% to a home's value. Elaborate landscaping, built-in electronics, and over-the-top cosmetic upgrades may not pay off either.

Want More Ideas?

I've also written about which renovations are worth the investment and which ones to skip, so take a look if you're still deciding where to put your money.

Let's Figure Out the Right Plan for You

There's no one-size-fits-all answer to whether you should make repairs before selling. It comes down to weighing your options carefully. If you'd like to talk through your situation and decide what makes sense for your home, reach out anytime.