Do you dream of a smooth sale of your house? After calculating the cost of repairs and renovations, you might be thinking about selling a house as is. Perhaps you think the time and money it would take to fix up your home for buyers is not even worth it. You want to sell it off and be done with it. But, if you do not do the repairs, most of the buyers won’t consider the house move-in ready. So, you will have to lower your price, collect a decent sum from the buyer and move on. If this is the case, here is a solution: You can sell your house as-is.
What Does Selling a House as is Mean?
If you are selling a house in its current state, then it is a sell an as-is house process. In this case, no repairs will be made, and the home will come with all its current faults and problems. “As is” essentially has a legal definition. The buyer will possibly have to sign paperwork mentioning that they recognize the particular terms of the transaction. When you buy a home “as is,” it’s usually spelled out in the purchase and sale agreement.
Technically, all houses can be sold as-is. It is never legally mandatory for the seller to repair or alter their property for a buyer. You can’t force a seller to change the present condition of the property for the buyer.
Prerequisites for Selling a House as is
Let’s look at the things you will need to do while performing any kind of “as is” sale.
- Provide disclosures
Most states have mandatory disclosures and failing to disclose information about your home potentially makes you liable for legal charges. If your roof is leaking or the house needs plumbing repairs, you cannot refrain from informing the buyers. If you do not disclose these conditions, it can come back to bite. If it’s established that you did not reveal some condition you were fully aware of, you can be held accountable even after the closing. Every state has its legal necessities for providing disclosures. Also, you can highlight your home’s positives, such as a great location or a large swimming pool, to attract your target buyer.
- Label your listing “as is”
Buyers are going to assume it’s a regular sale, unless a listing precisely mentions that it is being sold as is. “Including ‘as is’ in the listing helps you to connect with the best potential buyers.
- Arrange a pre-listing checkup
A pre-listing inspection is often vital to the process of selling as-is. It provides transparency into your home’s condition. Buyers will know the exact condition of the house and submit an offer based on that. You will receive more appropriate offers by disclosing these from the beginning.
What are the Pros and Cons?
Selling a house as is comes with possible advantages and disadvantages. It is not essentially good or bad.
- A faster selling time:
You can immediately put your house up for sale, rather than waiting for repairs to be finished. If there is a potential buyer, you will be able to speed up the selling process.
- Fewer costs to sell:
Spending extra money for upgrades to make your home look flawless will put pressure on your savings. So, selling a house as is means you need to devote only fewer costs to selling.
- Fewer interested buyers:
Selling your house as is might not invite a lot of potential buyers. If the location is not a hot market, then the potential buyers’ list can be really small. The “as-is” term can make the buyers assume that there’s something extremely wrong with the home.
- Lower selling price:
You will save money on the front end by skipping the repairs, but an as-is listing could attract bargain-hungry buyers or investors looking for a serious deal.
- Securing a mortgage on the buyer’s end will be difficult:
If the buyer is trying to secure a mortgage to buy your home, most lenders will not be ready to grant one for an as-is sale. The lenders might insist that the home should not have structural or safety issues before they can lend money to it. Even if the buyer wants to buy your home, the lender signoff can be an issue.
How to Sell a House as is?
If you decide to sell your house as-is, then follow these steps for a smooth sale process.
- Negotiate with your real estate agent
You might be thinking to try to sell your house on your own to avoid paying any commission fees to a real estate agent. But, the paperwork for selling a house without a realtor can be really difficult. If you think you can’t handle the paperwork and pressure, then consider choosing a realtor with a great track record of selling a home as-is. To save money on commission, negotiate the commission with your realtor upfront.
- Be honest with property disclosures
You need to disclose known defects in advance. If you know there is a leak or a floor issue, you are legally required to disclose that to the buyer. If you hid the condition of your home or misrepresent it, you can be held liable for the problems. So, be honest with your property disclosures.
- Keep it tidy
Even if you do not invest in any key repairs, you can focus on maintaining a neat home. Keep the home ready for viewings at all times.
- Fix your bottom price
Decide what your bottom price is going to be and be ready to make a quick counteroffer. You can always lower your price based on your bottom price limit, during negotiations.
If you are thinking about selling your home as is, the first step is to talk to a real estate agent. If you are thinking about selling on your own, the paperwork for selling a house without a realtor can be overwhelming. If you don’t want to put your savings towards repairs and renovations of your home, it’s best to choose to sell a home as is.