Selling a Home As Is
Does your home have a leaky roof? Are the bathrooms outdated? Is it time to replace the furnace? If your home has issues, and you’re getting ready to sell, you may be dreading the repairs you have to make before putting it on the market. But what if you were to sell it as is? Meaning – what if you decide to simply put your home up for sale in its current condition, problems and all? If this sounds intriguing, read on to find out what to expect.
Understand the trade-offs
Maybe you don’t have the time or money to put into a long and costly renovation. It’s understandable. But you do need to know what the trade offs will be. If you would need to put several thousand dollars – or more – into fixing the roof or renovating a bathroom, you should expect to knock the equivalent off the price of the home.
In addition, some lenders require that homes meet minimum requirements for health and safety standards. If your home does not meet them, than anyone needing a mortgage will not be a prospective buyer. You’ll be limiting the pool of buyers to only those who can pay cash.
Make the required disclosures
When selling a home as is, you need to be upfront about all the known problems with your home. In fact, you are legally required to make those disclosures, which will vary from state to state. The problems will be discovered when the buyer completes a house inspection, so be sure that all contracts clearly state the property is being sold in as is condition.
Know how to handle low offers or requests for repairs
Since an as is property is most likely going to appeal to investors looking to renovate and flip or rent the home, be prepared to get some lowball offers. Remember – investors will want to make a profit from their efforts. Don’t take it personally. Know what your lowest price is and be prepared to counter.
Also, if a house inspection uncovers issues that were not initially disclosed, a buyer may make requests for repairs or compensation. If you do not agree to them, they are allowed to walk away and have their deposit returned. You’ll then be required to disclose those additional issues discovered during the inspection to any new buyers that make an offer.
Keep the house clean
While you may not want to pour money into professionally staging your as is home, you should at the very least keep it clean and neat. This includes maintaining the yard and keeping the home ready for viewings. It will make a better overall impression and increase your chances of getting an offer you feel comfortable accepting.
While selling an as is home is not a piece of cake, it isn’t an insurmountable challenge. By knowing what to expect before you begin the process, you can sell your home for a price that both you and the buyer can be happy about.