Should you sell your home as-is? Well, only you can answer that question, but this blog will help you make that decision. Selling a home in as-is condition is beneficial for some buyers but could be a poor financial move for others. Let’s take a look at the pros and cons of listing and selling your home as-is.
As-is isn’t always negotiation-free:
Whatever your reason, selling your home as-is means you’re selling your home without making repairs or renovations. This often means you’ll be inundated by house buying companies throwing out low-ball offers. Still, it can also yield buyers looking for a home to fix up and make their own. When you deal with an offer from the latter, you should know that selling as-is isn’t always smooth sailing.
Homebuyers looking for a fixer-upper may still choose to request an inspection to inform their purchase (and specific areas of concern). So, while you may think that listing your home as-is will take any discussions or negotiations off the table, that’s not always the case.
If your potential buyer’s inspection finds something significant like a sinking foundation or that your house needs an entirely new roof, they may still ask you to make the necessary repair before proceeding with the purchase. If you decline – which is understandable given that you listed as is to have a hassle-free sale – the buyer is within their rights to pull out of the sale. This could mean starting the process over or having to discount your home to get it sold.
Pros of Selling your Home as-is:
If you’ve been through a complicated home sale before, you may wish to bypass endless negotiations and requests for repairs. You may be wary of the process after a bad experience, so listing your home without any promises of repair or upgrades seems like a reasonable step. This could be the best choice, especially if you want the process to be as hassle-free as possible.
Another reason to sell your home as-is is if you need to sell your home quickly. Whether it’s finances or a family situation, some homeowners need to unload their homes as soon as possible. Traditional house sales require a process of inspections – especially for those financing the purchase – which could unearth multiple areas in need of repair. Repairs and renovations are time-consuming, so selling as-is is an excellent option for quickly getting the house on the market. Depending on their financial situation, this type of home listing could be just what they need to sell their home in a short time frame.
All-cash buyers are another benefit of selling a home as-is. Because homes sold as-is are typically sold below market value, many potential buyers come ready to buy with cash. This means there is no bank financing involved, which can take at least 30 days to secure and process. Instead, cash buyers can come to closing with the check and have the liberty of foregoing inspections and other procedures banks require. Cash equals a quick close.
Downsides of Selling as-is:
The most obvious downside of selling your home as-is is that there’s an unspoken belief that something’s wrong with the house. And “something’s wrong with the house” equates to discounted pricing and less of a profit when selling. When buyers see a home listed as-is, they’re immediately going to feel that they’re entitled to a bargain, or they’re buying a home with problems that need to be addressed.
All is not lost, however. There are buyers in the market for fixer-uppers who want to customize the home to their liking or flip a home for profit on the resale. The downside here is that listing your house as-is automatically limits the buyer pool, as most buyers want turn-key properties without the hassle of making repairs and renovations.
How to Sell as-is
1. Find a top Agent
If you’re seriously considering selling your home as-is, the first thing you need to do is find a highly qualified, experienced real estate agent in your area. Start by asking friends and family. If you don’t know many people local to you, try searching local groups on Facebook – people often recommend services and businesses in these city or town-specific groups. An experienced agent will be able to advise you in selling your home and whether they think you’ll have similar results from a traditional listing.
2. Work Directly with a Cash Buyer:
Another option for you is to connect directly with cash buyers. If you’re working with an agent, they may have a network of buyers who only buy as-is properties to renovate them. If you’re positive you want to sell as-is, you can also bypass an agent and go straight to the internet, where you’ll find plenty of people and businesses offering to purchase properties as-is with cash.
3. Disclose any Problems:
Here’s a tip – if you know that there’s something significantly wrong with your home, be upfront and disclose that information. You may think that selling as-is means being hassle-free. Still, again, buyers looking for a fixer-upper for themselves may flee if their inspection yields a significant issue and you don’t negotiate with them for repairs. It always pays to disclose everything about your property because if you don’t, you may unwittingly turn what was meant to be a quick process into weeks and months until you find the right buyer at the right price.
4. Price Accordingly:
An important thing to remember is that when you put ‘as-is’ in a listing, the price must match that listing. Work carefully with your agent – or even let them take the lead – to set a fair list price. If you know that you absolutely won’t negotiate the price to help with any repairs, you must have the price correct off the bat. Likewise, if you’ve already factored in known issues with the house and priced accordingly, you don’t need to discount further for those repairs.
One last consideration is for you to treat this sale like any other, in terms of decluttering and cleaning. Organizing your home and giving it a deep clean can make a difference, especially when you’re selling as-is. In the end, only you can decide what’s right for you and your family. A quick sale may be what you need, so by all means, sell your home as-is!