Last reviewed October 20, 2026.
Prepare the house before you list, and pay for the work from your sale proceeds at closing.
Some repairs and updates can be done before your home goes on the market and paid for out of the sale proceeds at closing, so the money does not leave your account first. Neil Chhabria has access to outside programs that work this way and explains how they operate, so you can decide whether one fits your sale.
What it means for you
If you own a South Bay home you plan to sell, the work is finished before the first photograph, and your cash stays in your account until the sale funds the bill.
If you are comparing options, you can set a program’s terms beside paying for the work yourself and decide with the numbers in front of you.
How much less do homes that need work sell for?
Zillow’s analysis of more than 2 million U.S. listings from 2024 found fixer-uppers sold for 7.3% less than similar homes, and homes described as needing work or TLC sold about 8% below expected price. Remodeled homes sold 3.7% above. The figures are national and drawn from listing keywords.
Zillow compared sale prices with what similar homes were expected to fetch. Condition changed the result.
Homes listed as fixer-uppers sold for 7.3% less than similar homes.
Homes described as needing work or TLC sold about 8% below expected price, more than $28,000 less on a typical U.S. home.
Remodeled homes sold 3.7% above expected price, about $13,194 more on a typical U.S. home.
Source: Zillow analysis of more than 2 million U.S. listings from 2024, published February 19, 2025 (Zillow press release).
On a $1,000,000 sale, 7.3% is $73,000 and 8% is $80,000.
If you own: that difference is what a condition discount takes from a sale. A pay-at-closing program takes the price of the work from your proceeds instead, so the number to compare is what you keep. Your Exit Math shows it line by line.
If you are buying: the same figures show why a home that needs work is priced lower. Zillow notes that renovation prices can erase the savings.
49% of sellers’ agents said staged homes spent less time on the market, and 29% reported a 1% to 10% increase in the dollar value offered (NAR 2025 Profile of Home Staging, May 6, 2025, 1,266 responses from active REALTORS®).
These are national figures, not South Bay figures and not any one individual property. Zillow identified condition from listing keywords, not inspections. This is general real estate information, not tax, lending, legal or investment advice. We update this band when either source publishes a new edition.
How does pay-at-closing home preparation work?
Neil walks the house and identifies the work buyers will notice and explains how the available programs work. You review the program’s written estimate and agreement. The work is finished before listing, the house is photographed and listed finished, and the program is paid from your proceeds at closing.
- Neil walks the house and identifies the work buyers will notice (see the Deferred Maintenance Walk-Through).
- Neil explains how the available programs work and what each one covers.
- You choose the work and review the program’s written estimate and agreement.
- The work is completed before the house is listed.
- The house is photographed and listed finished.
- The program is paid from your proceeds at closing.
What if I don’t have the money to fix up my house before selling?
Some pre-sale renovation programs pay the contractor up front and take repayment from your sale proceeds at closing, so you spend nothing before the house is listed. One published program states no interest and no credit check. Terms differ by program, and the cost comes out of what you receive at closing, so ask for the full scope and total in writing before you sign.
Neil starts one step earlier. The walk-through produces a prioritized list, and the first items are often small: paint, lighting, landscaping and a handful of repairs cost far less than a remodel, and he tells you which ones a buyer’s inspector would flag first. If a program fits, he explains how it works and what it takes from closing. Neil receives no fee from any program, and there is no obligation.
How much does it cost me in the end?
No program publishes one number, because the total is the agreed scope of work plus whatever the program takes at closing. One program states it fronts 100% of the scope with no interest and no credit check. Another publishes a fixed-price contract and financing without terms. A third recovers its costs plus a portion of the added value, and its percentage is not published.
So the answer for your house is a written total: the scope, the price of each item, and the repayment terms. Neil reviews that total against his own prioritized list before you sign. Your Exit Math then subtracts it from the prepared sale price, next to the as-is price, so you see both nets with your own numbers.
What do I make selling as-is or for sale by owner, compared with preparing the house?
No source measures net proceeds directly, so the comparison starts with sale price. Zillow’s 2024 listing data found homes marketed as fixer-uppers sold 7.3% below comparable homes. On a $1,000,000 South Bay sale that is $73,000. The same study found remodeled homes sold 3.7% above. Preparation costs, commission and any program charge come out of the difference, so your net depends on the house.
For sale by owner, the National Association of REALTORS 2025 Profile of Home Buyers and Sellers reports a median sale price of $360,000 for FSBO homes and $425,000 for agent-assisted homes, an 18% difference, and FSBO sales are 5% of the market (NAR, November 11, 2025). The two groups are different homes, so read that as a national pattern, not a prediction for your address. Your Exit Math runs your own numbers: sale price, preparation cost, commission and what is left.
If you own: ask Neil for the as-is price and the prepared price on your house, side by side. If you are buying: a house marketed as needing work is where Zillow’s 7.3% shows up, and Neil’s inspection-side list tells you which work is cosmetic and which is structural.
Will anyone buy my home as-is and let me share in the profit when it resells?
Some buyers pay cash for a home as-is, and one program we checked also offers a Fix and List option that shares the added profit with the seller. Its published terms give no split percentage, and the profit share applies to a renovated listing, not to a cash purchase that resells later. We found no program that buys as-is and pays the seller afterward.
If a buyer offers you a bonus after resale, get it in the purchase contract with the formula, the deadline and the accounting you can inspect. A promise outside the contract is not a term. Neil compares any as-is offer against your prepared net before you decide, and an attorney reviews the contract.
Where do I live while my house is being fixed up?
That depends on the work. Paint, lighting, landscaping and minor repairs usually let you stay. Flooring, kitchens, bathrooms and anything involving dust, water shutoffs or fumes often mean a few weeks elsewhere. One program’s help center lists staying with family or friends, a rental, an Airbnb, a hotel, or moving into your next home. Neil’s list marks which items need you out and which do not.
A short-term lease is the usual answer for a longer project. See South Bay homes for lease, or ask Neil to help you find one.
Does anyone help me pay rent while I’m living outside my home during the work?
None of the pre-sale programs we checked lists rent or temporary housing help on its public site as of October 19, 2026. The programs fund the renovation, not your housing, so plan the rental as a separate cost and weigh it in your Exit Math numbers. A program may offer help that is not published, so Neil asks each one in writing before you choose.
How does a pay-at-closing program get repaid, and what happens if the house doesn’t sell?
Repayment comes out of your closing proceeds through escrow. One program publishes four triggers for repayment: the sale closes, you cancel the listing, the home comes off the MLS, or 12 months pass from the contract date without a sale. Another recovers its cost plus a share of the added value. Read the repayment trigger before you sign, because it decides your risk if the sale takes longer than planned.
Does Neil Chhabria receive a fee from these programs?
No. Neither Neil Chhabria nor Chhabria Real Estate Company receives a fee or referral payment from these programs. Terms, coverage, and what happens if a sale does not close are set in each program’s agreement, which the owner should read before signing.
The programs are run by outside companies, and their terms vary. This is general real estate information, not tax, lending, legal or investment advice. Talk with your own lender, CPA or attorney about how a pay-at-closing arrangement fits your situation.
Ask Neil
Call or text Neil at 310.798.3122, or use the contact form.
Preparing to Earn Top Dollar on Your Home Sale
Know what to prepare, what to skip, and what to do in the first two weeks on the market. A 16-page guide for South Bay sellers.
Neil Chhabria, Broker and CEO, Chhabria Real Estate Company, DRE# 01821437.
Have a question about this? Neil answers personally.