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Selling a house as-is can actually be a much easier process! There are no repairs or home improvements and there is no haggling with potential buyers. If you do decide to sell your home as-is, it is important to keep an open mind so it doesn’t backfire on you. We will cover all aspects of the process of selling a house, so you can decide if this is the right path for you!
What is Selling a House As-is?
Selling your house as-is means you are selling it in its current condition without any repairs or improvements. The buyer will get the property exactly as they saw it.
There Are Still Requirements For Selling Your House As-is
Selling your property the way it is does not negate the fact that there are certain requirements associated with selling your home. No matter what the condition of your property, you still have to disclose it to potential buyers. The exact details of what you must disclose when selling a house as-is may vary from one state to the next. Each state has its own set real estate disclosures, which must be completed by the seller. These disclosures ask home-sellers a series of questions they must answer honestly and to their best knowledge.
Real estate agents must also be open about all information regarding the property. They should be disclosing many things to potential buyers when selling a house, including foundation cracks, structural defects, termite damage, roof leaks, electrical hazards, water damage, and more. Real estate agents and home sellers are legally required to disclose certain information even if it may discourage potential buyers from moving forward with the sale of their home.
Selling Your House As-is Still Provides You With Options
First, you can sell your property off-market to a cash buyer. Many buyers are open to making a cash offer when buying a home in its current condition. There are two types of cash buyers: individual investors and companies that buy houses for cash. These two groups share a business model that requires them to offer you a lower price than the market. Sometimes, even below the market value. This is a good option for homeowners in dire situations who need to sell their home quickly and as-is.
Secondly, you can place your property on the open market. A house that is being sold as-is and put up for sale on the open market will nearly always have a higher value than if it were to be sold off the market. This is the traditional way of listing your property on the MLS and selling it through a real estate agent. The only time home sellers may not be able to qualify for this program are those who try to sell a property without livable conditions. These homeowners are forced by circumstances to sell their home to a cash buyer. Because banks won’t finance these properties, buyers won’t be able to obtain a loan.
Benefits of Selling a House As-is
It Saves Time
Home sellers often choose to sell their homes in their current condition because they can save time. If you sell your house to a cash buyer as-is, it will speed up the closing process. The buyer won’t need to make a down payment or get a mortgage.
It Saves Money
It is not uncommon to have to make expensive repairs or improvements, especially if you are living in an older home. You’ll be able to save money on out-of-pocket expenses, regardless of whether you have the funds.
Drawbacks of Selling a House As-is
It May Provide You With Fewer Offers
No matter which type of realty market you are in, the condition and value of your house will play a major role in how many potential buyers want to make an offer. You’ll decrease the demand for homebuyers if you don’t make any repairs or/and improvements. Potential buyers may not buy a house if it isn’t being sold as-is for many reasons, such as the assumption that the house is in poor condition, the belief that the home is not fixable, the desire for a move-in ready home, and the fact that lenders won’t approve mortgages for homes that are in poor condition.
It May Take Longer to Sell Your Home
There is a possibility that your house will sit on the market if you sell it as-is, unless you sell it to a cash buyer at a discounted price. You will not have to spend lots of time preparing your home, but the listing process generally takes longer.
You May Still Have to Do Repairs
You might think that listing your home as-is means that a buyer won’t require you to make repairs, but then can. The buyer can include an inspection clause in the offer contract or even have the home inspection done by themselves. This also gives the buyer the opportunity to negotiate with you, asking for a lower sale price or asking you to make repairs. If you do not agree to their request they can ask for your deposit back or withdraw from the contract. This could put you in a situation where you have no choice but to repair.
Offer Cost Estimates to Potential Buyers
Buyers who are interested in your home will be considering the cost of repairs. The home inspection gives buyers key information, but does not show estimates of costs. Buyers who don’t know the cost of repairs will make costly errors and end up spending more than they should. This could lead to a lower selling price or discourage buyers who make offers. A list of estimated costs can help to prevent these things from happening.
Sometimes selling your house as-is is the best option, especially for those with limited time, energy, or funds to renovate. Many sellers choose to sell their home as is and end up in a losing situation because they received bad advice from an inexperienced real estate agent. Finding a trusted real estate agent is key to a successful sale of a home. They will make it easier, quicker, and more profitable to sell a house than you might think.