Selling a home means spending time and money improving the curb appeal. Once everything is complete you need to keep the house show-ready. But it does not have to be that hard. Read on to learn more about how to “sell my as-is home” in today’s competitive real estate market.
Advantages of Selling Your Home As-Is
Selling a home as-is means the property is available in its current state, whatever that state is. The homeowner will not make repairs or improvements before the sale. They also will not negotiate with a buyer for credits to make any repairs. It can be assumed that an as-is home needs at least some upgrades and may be in poor condition overall. No seller with a well-maintained, fully updated property would decide to list their home in as-is condition.
In most cases, selling as-is will not command top-dollar, but there are still many good reasons an owner may decide to put their home on the market in less than desirable condition.
1. You Do Not Have to Spend Money on Repairs
Maybe your current property is a money pit, and you are tired of it. Maybe you need to stay liquid for an upcoming opportunity. Emergencies and life’s unforeseen circumstances could require a homeowner to sell at a time when they do not have the cash to make upgrades they would like to make. Whatever the situation, if you are not in a financial position to make improvements, selling as-is allows you to get your home on the market without a further investment of time or money.
2. Moving Is Less Stressful
You may be losing some of the cash value by selling a home in as-is condition, but it can be far less stressful. Not only can you skip the repairs, but you can also skip the deep cleaning or even leave belongings in the home if necessary. Selling as-is is ideal for the homeowner who wants or needs the easiest path out of a mortgage.
3. It Makes Estate Sales Easier
In many cases, the fast sale of a deceased parent’s home is the most efficient way for siblings to divide and distribute an estate. If none of the children have time to oversee repairs or a family agrees to not spend money on improvements, selling as-is is a good solution.
4. Takes Quick Advantage of High Land Value
If the house is a teardown or the land it is sitting on is more valuable than the house, it makes sense to sell as-is. Improving a home that will likely be torn down anyway is not only a bad investment, it will delay putting the property on the market.
The Downside of Selling As-Is
There are many advantages to selling as-is, but it does not relieve a homeowner of all their legal obligations. Laws differ from state to state, but no state allows a seller to withhold information or answer dishonestly when questions are asked. Sellers may not intentionally hide defects or make purposeful misrepresentations of the property. You are legally required to disclose known defects once you have an offer. “Known” is the keyword here, because there could be defects you are not aware of, especially in cases of inherited property.
Being required to disclose problems with the house does not mean you are responsible for pointing out every chip in the paint. Larger issues such as a leaking roof or faulty heating system are more accurate examples of defects that should be disclosed. If you are still unsure, a realtor can help you navigate the laws in your state.
What Is in It for the Buyer?
Helping a buyer understand the benefits an as-is sale offers them will help you get a sold sign in the yard that much faster.
It may seem that buyers interested in an as-is home have no legal protections, but that is not entirely true. “As is” has a legal definition that would need to be clearly defined in the purchase and sale agreement. Buyers are still free to conduct a home inspection to see exactly what they are purchasing. If the inspection reveals something more serious than a buyer is prepared to deal with, they are free to cancel the deal without penalty.
A buyer may also request repairs to be made even though the home is listed as-is. Whether or not a seller is willing to make those repairs is up to them, but buyers do maintain some negotiating power with an as-is listing.
Should I Sell My As-Is Home?
Before deciding whether to sell as is or invest in repairs, there are a few key factors to take into consideration.
Price It Properly
Overpricing an as-is home is a sure way to limit interest. The property will still need to be appraised, and buyers will need to justify the price to their mortgage lender. If the purchase price is higher than the appraisal, the loan will not be approved. If this happens, the buyer will have to start over somewhere else. Buyers do not want to waste their time, especially when markets are hot. Your as-is home should be priced to reflect the amount of work that is required to make necessary upgrades.
Fix What You Can
You are not obligated to make repairs when selling as-is, but making some effort to get the house in good order will pay off in the long run. Give the house a thorough cleaning, remove or replace broken items, and tidy up the yard. Unless you are selling as a tear-down, you want the property to look like a safe, appealing home with potential. If it looks like it was recently hit by a bomb, even the hardiest DIYers will keep walking.
Whatever the disclosure laws are in your state, do not try to skirt around them. Being as honest and forthcoming about the property is not just the right thing to do. It can also help you sell your as-is home faster. Buyers willing to purchase a property needing upgrades are not afraid of work, but they are wary of surprises. A buyer who feels confident they have all the information about a home is more likely to move forward with a sale. A buyer who is not confident may leave if they suspect the seller is holding out.
Work With a Rehab Company
If you want to take the simplest route to “sell my as-is home” and get paid quickly, consider working with a rehab company. Selling your as-is property to GTG Buys Homes is similar to trading in a used car. You do not have to make repairs or worry about maintenance issues. You just make the sale and walk away with cash in your pocket. There are no closing costs or commission costs to deal with, and no appraisals are necessary.
Selling your as-is home to GTG Buys Homes is great for you and your neighborhood. We are in the business of home rehab. It is our job to polish rough stones into diamonds. Call today to learn more about the super simple buying process. We can help you get your as-is house sold in as little as seven days. We are more than happy to provide additional information.