There are myriad reasons why you want to sell your home, but they all come with a lot of hassle like doing repairs and renovation, listing, showing, and closing, not to mention the paperwork required. While there is not much leeway when it comes to the legal aspects of a sale, there are a few options available to you if you do not want to be bothered by repairs and renovations. Especially if you cannot afford it or if you wish to be emotionally and physically free of the property as soon as possible. One of these is selling a house as is.
What does selling a house as is mean?
In real estate, selling a house as is means selling it in its current condition, without any repairs or renovation. The buyer is purchasing the property with full knowledge of its present condition. So, as a seller, this means that you are not required to make any repairs to your house, but you are required to disclose the full condition of your house to the buyer. Most buyers will do a home inspection before agreeing to the purchase.
What are the advantages of selling a house as is?
The two major advantages in selling your home as is come in the form of saving your time and your money. Since you will not be making any repairs or renovations, you can put up the house on the market immediately. You will be saving both your time and money which you might otherwise have spent on making repairs. Another advantage is convenience. Sometimes, you just do not want to be bothered with making repairs.
What are the disadvantages of selling a house as is?
The major drawback in selling your home as is lies in lower profits. If you are not going to do any repairs or renovations, and sometimes not even a quick clean-up, then buyers may not be willing to offer a high price for your home. In fact, in such cases, you will find that your might have to settle for an amount that is much lower than the open market value of your property. Another disadvantage is that your pool of potential buyers will be severely limited. People who are looking for a home in your location, or those interested in DIY projects might be the type of buyers you get. You can also expect cash offers from investors or house flippers.
How do you sell a house as is?
While selling a house as is does not come with the challenges of selling your home on the open market, there are a few things that you as the seller must do/keep in mind while putting your property on sale.
Get Professional Advice
While this might seem like much, it is always better in the long run to get the opinion of a licensed real estate agent. For one thing, they can do a comparative market analysis of your home and help you on setting a realistic price. If the price you set is too high, your house might remain on the market indefinitely. Agents will also help in listing your house on the local flat fee MLS where they can list it as-is. This will widen the exposure of your property and help in getting a buyer quickly. Having an agent will also be handy in negotiating a deal with the buyer. Employing a traditional real estate agent might not be within your budget. However, you can hire low commission real estate agents to advise you in selling your property as is.
However, if you do not want to hire a real estate agent, but still want to sell your house as is, you can request cash offers from house flippers or iBuyers.
While the seller is not required to undertake any repairs and renovations, in many states, it is the law that you must provide full disclosure to the buyer regarding the present condition of your house. In many cases, you will have to provide the buyer with a disclosure report that details all the problems and drawbacks of your property like plumbing problems, foundational damage, leaky roofs, electrical issues, and mold to name a few. Low commission real estate agents or companies can help you get a clear picture of the disclosure laws of your state so that you do not get sued for failing to disclose defects.
It is always advisable to get your home inspected by a professional before you list it for sale. This is even more important if you want to sell your house as is. The inspector may even help you locate some defects which you were not aware of, and you can add them to your disclosure report. Also, this shows that you have nothing to hide, and potential buyers will be more willing to check out your property.
Estimate the Cost for Repairs
Although as a seller you are not required to undertake any repairs, it is nevertheless a good idea to get an estimate of the repairs needed to bring your home up to date. For one thing, it will come in handy when negotiating with buyers, especially if you get the estimate from local contractors. Don’t stop at just one contractor but ask two or three reputed firms for an estimate. And who knows, sometimes, you might find that your house does not need very expensive repairs. In such cases, you might be able to finance them yourself and be able to sell your house on the open market for a much higher profit.
Set a Realistic Price
Many sellers get carried away while setting a price for their house. Their idea is that since all buyers negotiate, keeping the asking price high will ensure a decent profit after negotiations. However, this is not necessarily true. Most buyers are put off if the asking price is too high. Buyers would not want to look at homes they cannot afford, or in this case, they would not want to pay a high price for an as-is home. Therefore, setting a realistic price is very important. Low commission real estate agents can help you set the right price so that you do not scare off any buyers and also manage to get a fair profit from the sale.