When a home is being sold as-is, it means that a homeowner is selling it in its current situation with no repairs, renovations, or improvements before selling. It is a good alternative for any homeowner who does not have enough cash to renovate or wants to sell the house fast. Note that even when you are selling a home as-is, you will still go through the typical steps of selling a home, like marketing it and showcasing it.
In certain situations, selling your home as-is may be your only or best option, but it is also good to compare to be sure. Here are a few pros and cons of selling a home as-is.
- Time-saving. You do not have to wait for a long time for repairs to be done to list your home. This can come in handy, especially when you are in a hurry to sell. In addition, you will not have to engage in lengthy negotiations for repairs.
- Saves You Money. You do not have to use your savings or get a loan to make the improvements needed, hence saving on cash.
- It can lead to a cash offer, speeding up the closing timeline.
- You will get fewer offers. As-is homes usually have lower prices than attract most buyers, but most turn away when they see the list of repairs to be done.
- Low profits. Any potential buyer will try and negotiate for a low cost because they want to compensate for the repairs needed to be done. This means you might have to compromise on price.
Key Similarities in Selling an as is Home and a Standard Home
As a seller, you need to follow all the disclosure laws. Also, note that potential buyers have a right to request inspection contingencies. During an inspection, if the condition of your home does not meet their expectations, they can back out. You are also required to pay a closing fee on an as-is sale, just like a standard home.
Because a homeowner is selling a home without any improvements, the cost of an as-is home will be lower compared to a standard home. It is also hard for buyers to get a mortgage on an as-is home, and therefore, you might have to target a specific group of buyers. This includes house flippers and investors who have alternative financings like hard money loans or cash.
Tips on Selling an as-is home
Consult with Local Realtor
Even if you do not have enough cash, it is best to work with someone who understands the world of real estate. They will help you with setting a realistic price and represent you till the house is sold.
Disclose any Defects
Yes, you are selling your home as-is, but that does not mean you should not disclose any issues. Buyers have to know what they are getting themselves into before they make an offer. It is better to give them a disclosure report where they can see all the problems.
Before Listing Have the Home Inspected
The only way to know you have fully disclosed all defects is through a home inspection. Furthermore, when you present prospective homebuyers with a disclosure report from a professional inspector, they will know you have nothing to hide.
Get Estimated Costs of Potential Repairs
Once you have a report on your home’s defects, find out the estimated price of what it would cost to renovate. You do not necessarily have to fix anything. However, having this information gives you an advantage when it comes to negotiating in case a buyer tries lowballing you.
Set a Realistic Price
This is something a realtor can help you with. You want to ensure that when potential buyers step into the house, they look beyond the issues. A realtor can help market the positive features like the size, location, and floor plan.
As much as you are not doing any repairs, there are low-cost things you can do to your home, ensuring it is in good condition. For instance, tidy up by vacuuming, washing windows and surfaces, donating what you no longer need, and removing any trash and broken furniture.
Due to circumstances, you might have to sell your house as-is, whether it is an inheritance or you want quick cash from selling a home. Whichever the reason, these tips can help you make the right decisions. If you have a house that you want to sell as-is, contact a realtor today for assistance.