When preparing to sell your home, it’s tempting to leave substantial repairs for the next owner. You may think, “I’ll just lower the price by what the repairs would cost.” Unfortunately, buyers don’t always do the math that way—and leaving major problems unresolved can cost you considerably more than fixing them.
Right now, buyers are picky. They’re paying close attention to condition, and many don’t want a major repair bill immediately after making a down payment, paying closing costs, and moving. A roof leak, foundation concern, failing air conditioner, or significant plumbing problem can turn an otherwise appealing home into a project they would rather avoid. Recent reporting from REALTOR® organizations reflects that concern about repair expenses and unexpected costs.
For McKinney homeowners, the goal should be to make your property appealing to someone who wants to live in it. If substantial problems push those buyers away, you may find yourself negotiating primarily with investors—and their numbers work very differently.
A Repair Can Cost You More Than the Contractor’s Bill
Imagine your home needs a substantial repair. You obtain a professional estimate for $20,000 and assume a buyer will simply deduct $20,000 from an otherwise reasonable offer.
But the buyer may also factor in uncertainty. What if the repair uncovers another problem? What if the contractor’s estimate changes? How much time will the work take, and can they live in the home while it’s happening?
That uncertainty can lead to a discount larger than the actual repair cost. Some buyers will skip the property altogether. Others may start wondering what else has been neglected.
Addressing a significant problem before listing—and providing documentation of the completed work—can help buyers evaluate the home with more confidence.
Investors Will Buy As Is, but the Convenience Has a Price
Investors can be a useful option for sellers who need a quick sale or cannot take on repairs. However, an investor purchasing a home to renovate and resell needs room for expenses, risk, and profit.
One way to illustrate that calculation is the 75% rule:
Potential investor offer = estimated value after repairs × 75% − repair costs
In other words, the investor starts with what the home could sell for after the work is completed, takes 25% off that value, and then subtracts the estimated repairs.
This is an illustrative pricing approach, not a universal rule. Investors use different percentages; the commonly discussed 70% rule follows the same basic structure with an even larger initial discount.
Here’s What the Math Looks Like
Let’s say your home would be worth $500,000 after repairs, and it needs $40,000 in work.
| Calculation | Amount |
|---|---|
| Estimated value after repairs | $500,000 |
| Subtract 25% of that value | −$125,000 |
| Remaining amount | $375,000 |
| Subtract estimated repairs | −$40,000 |
| Illustrative investor offer | $335,000 |
Under that formula, the investor’s offer is $165,000 below the home’s estimated repaired value, even though the repairs themselves cost $40,000.
That $125,000 cushion isn’t all profit. It must leave room for holding costs, financing, transaction expenses, unexpected problems, and the investor’s eventual return. But from your perspective as the seller, it is still a substantial reduction in your proceeds.
Now compare that with a hypothetical sale after you complete the repairs. If you spend $40,000 and successfully sell for $500,000, you have $460,000 before selling expenses and other ownership costs. Compared with the $335,000 investor offer, that’s a $125,000 difference before accounting for those additional costs.
The repaired sale price and repair budget are estimates, not guarantees. Still, the example shows why selling as is can cost much more than the amount needed to fix the home.
Aim for a Buyer Who Wants to Call It Home
A buyer planning to live in your home approaches the purchase differently from an investor planning to resell it.
They may love the neighborhood, the floor plan, the backyard, or the proximity to downtown McKinney. They are buying a place to build their life, and their offer does not need to include a built-in resale profit margin.
That doesn’t mean an owner-occupant will pay any price or overlook problems. They will still compare homes and negotiate. But when your home is well maintained and appropriately priced, they generally have less reason to demand the deep discount a renovation investor needs.
The more appealing your home is to someone who wants to live in it, the less likely you are to be limited to offers based on investor math.
Fix the Substantial Problems Before Chasing Cosmetic Updates
Preparing to sell doesn’t automatically mean remodeling the kitchen or replacing every dated finish. Start with problems that affect the home’s condition, function, or a buyer’s confidence.
Active leaks, significant roof damage, malfunctioning heating and cooling equipment, electrical hazards, and professionally diagnosed structural concerns deserve attention before decorative upgrades.
Get qualified evaluations and written estimates so you understand the actual problem. Complete appropriate repairs, address the underlying cause, and keep receipts, warranties, and other documentation.
The right repair strategy depends on your home’s value, the scope of the work, your timeline, and your available resources. Sometimes selling as is makes sense. The key is understanding what that convenience may cost before choosing it.
At Tye Realty Group, we help McKinney homeowners evaluate those decisions before putting their homes on the market. Our goal is to help you prioritize the work that matters, attract buyers who want to make your house their home, and protect as much of your equity as possible.
