Are you considering selling your house but all the money that will go into repairs and updates is haunting you? Selling a house as is can be a pretty sweet deal in this case. You may have to lower the asking price, but it’s better than getting into the costly affair of repairs, especially if you are short of time and money.
This article puts together a few tips for selling your home as is. Let’s get started.
What does selling a house as is mean?
In an as-is sale, the buyer is buying the house in its current state. This means that the seller will not carry out any repairs, even if they surface in the inspection report. The buyer is purchasing the property willingly with complete knowledge of its state.
However, when adopting this route, a seller is not free of the duty to reveal all that they know about the house to the buyer.
Tips for selling your home as is
Here is a bunch of stuff you should know and do during any type of “as is” sale.
1. Give disclosures
Selling “as is” isn’t some loophole you can exploit to keep the buyers in the dark about a leaky roof or moldy floor. Almost all US states demand mandatory disclosures to be made when selling a house. Failing to put out this information may open you up to possible legal consequences.
Check with your agent about the legal requirements for sellers disclosure in your state. They can help you emphasize your property’s good features, like a prime location or a big yard, to draw your target buyer.
2. Label the listing “as is”
Unless your listing has the specific nomenclature of being sold “as is”, customers will presume that it is a usual sale.
By labeling it correctly, your agent will be able to match you with the appropriate buying agent who will in turn connect you with the right prospective buyers.
3. A pre-listing inspection
Doing so will add transparency to your house’s condition and is quite essential to the process of an “as is” sale. If everything is disclosed from the very start, you are more likely to get non-contingent offers. This is because buyers would be aware of the exact problems with the house and will give an offer basis that.
4. Estimate the cost of repairs
When you know what is wrong with your property, you can get an estimate of what it would cost to mend it. You do not need to fix anything but if you have a cost estimate in your mind then it will add to your negotiating power if a buyer tries to make a lowball offer.
Additionally, you may find out that some repairs are not that costly and fit your budget. You can think about carrying out the repairs that may give you a higher return on investment. These repairs will basically augment the look of your property and may include works like deep cleaning, adding a fresh coat of paint, or setting up fresh mulch in the garden area.
5. Set a realistic price
Setting a price is more about just knowing what your house needs. It also involves knowing what your house already has going for it.
To ensure that potential buyers are not just looking at some defects when they look at your listing, you may need to hire an expert agent. They will assist you in keeping a realistic price for your home, based on its good and bad characteristics.
How to Sell a House As Is
There are two ways for selling a house as is: you may either request a cash offer or sell it as is with an agent.
To request a cash offer you may consider going to a pool of buyers who are not concerned about your home’s condition and ask them to buy your house. Cash buyers could be house flippers, rental investors, or house-buying firms in the business of buying distressed properties.
You may even reach out to an individual buyer who has some serious capital and can afford to make the needed repairs.
As most cash buyers like to purchase houses off-market, you may have to go to them instead of them coming to you.
The other option is to sell with an agent. To avoid a not-so-great experience selling a house as is, you may want to take the services of a professional agent.
They may save you from unscrupulous buyers and can even get you a good price by negotiating hard. In such sale situations, agents do a lot of homework like verifying the buyers’ reputation, watching out for buyers’ tactics of renegotiating, and thwarting such efforts. All in all, they will help you make the right decision.