House Resale Value

House Resale Value vs Repairs

We often run into this scenario in our business, where a buyer, seller, or investor is trying to determine a house value with or without repairs being made. There’s an old term used in the real estate business, “Caveat Emptor”, Let the buyer beware. Most investment type homes that are prime for a return on your investment come in “as-is”condition. These homes often are bank owned (REO), or have been neglected over the years. So where do you start?home repair

Where to Start

First off, find a local Realtor® that you can work with. Why local? You definitely want someone who has knowledge of the area, market trends, and will be able to give you a true home value analysis. A home valued at $300,000 in Seattle WA, may only have a market value of $200,000 in Arlington or Stanwood WA. They can also supply a list of home inspectors. Do get a home inspection! Many times there are hidden problems that can’t be seen when viewing a home, you don’t want to find these out after you’ve purchased the home.

Starting the House Search

Let’s say you’ve found a local Realtor® you can work with and trust. In your search you’ve found a home priced at $200,000 that needs some TLC. The next step is to determine the value of homes that have sold in the same condition without any upgrades. In this scenario your agent has determined some bank owned homes and neglected homes in the same condition have sold for an average price of $200,000. Your agent has also found homes that are reasonably similar in sq. ft., lot size, etc., that have been upgraded, in good condition have sold for an average of $225,000. Have a free “Market Snapshot” delivered to your inbox showing all the activity in an area you choose. Unsubscribe at any time, spam and ad free.

Developing the Repair/Rehab Costshome rehab

You’ve determined the rehab costs that you obtain using the cost calculators in total $50,000. If you were to purchase the home at the asking price of $200,000 and spend $50,000 in rehab costs, you will have invested $250,000 into the home. Remember, the price for upgraded homes only sold for an average of $225,000. If you plan to resale the house after repairs, you will have to negotiate a price no more than $152,000 in order to make the repairs and pay resale costs. ($225,000 resale value, less $50,000 repair costs, less $18,000 resale costs). This does not include any profit for all the time and work you have exhausted!

Home Resale Value Tips


  • Forget the reality shows on TV, most of them aren’t real
  • Be realistic when it comes to costs and repairs
  • Don’t rush, finding a good opportunity takes time
  • Be ready to buy, good opportunities won’t last when they’re listed
  • A 10 day inspection period gives you time to cancel the offer
  • Don’t forget the landscaping, a first impression is a lasting impression
  • Pressure wash the walkways and driveway
  • Painting, roof cleaning, new floors, all add value at minimum costs
  • Pictures of the home show better with clean windows

We’re here to help

Give us a call before you start your search, our agents are

well trained and have the knowledge to assist you in making

the right decisions.

Thanks, from all of us at Windermere Arlington








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  2. Thanks for posting the link to homewyse. I enjoyed reading your article, makes a lot of sense.

    • We’re glad you enjoyed the article. We also use in our office to help clients make decisions. Bill, don’t forget we offer a free “Market Snapshot” delivered to your inbox which includes current market activity for your area. You can unsubscribe any time, and its free from spam and ads. Thanks from Windermere Arlington