Is Selling a House As Is a Good Idea?
Are you considering selling a house as is? Read this article to learn whether or not you should fix up your home before you sell it.
5.25 million homes sold in 2019. That's a million more than the number that sold 10 years ago.
While many sellers go all out to make their home as attractive as possible, some choose to sell a house that needs work.
Read on to learn everything you need to know about selling a house "as is."
What Selling A House As Is Means
When you plan on selling a house as-is, that means that the home is in need of some repairs that you will not make.
Buyers understand that the home comes with the current issues. You might be surprised to learn that "as is" actually has a legal definition. The terms of buying a home "as-is" will be clearly outlined in the purchase agreement.
What Selling As Is Does Not Mean
An as is home sale does not mean that you can hide, lie, or avoid disclosing issues with the home.
You have a legal obligation to answer questions honestly about any existing problems or issues according to the laws in your state.
Sellers have a duty to avoid making misrepresentations about the property and must give honest answers to the buyer's questions.
Issues You Must Disclose When Selling a House As Is
Your real estate agent must disclose the following issues to prospective buyers:
signs of structural issues like a major crack in the foundation
previous ice damage or roof leak damage
external noise level concerns
major plumbing or an electrical issue
mold
termite damage
radon levels that are higher than the acceptable EPA limit
legal issues on the title or if the property is a short sale
Having said that, not every issue a home has will be visible. If a realtor discovers an issue or the owner discloses a concern, the agent must let prospective buyers know.
The Disadvantages of Selling As Is
Selling a home as is does mean less work for the sellers. But, there are also several cons to consider. Here are a few for you to think about.
Buyers will come in with ready to be negative
When a home is selling as is, many buyers will view the property negatively. Buyers often walk into a home with neutral expectations. But with a home that is selling as is, they are more likely to already assume something is terribly wrong.
Buyers will low-ball you
Buyers will assume that because you are selling the home with defects, you are desperate. You are likely to get very low offers from people who want to see just how desperate to sell you are.
This can be annoying and insulting to the sellers.
It May Attract Fewer Buyers
When your listing says "as is" on it, that will drive away many potential buyers who are scared by the horror stories they might have heard from friends or seen on TV shows.
Even if the repairs are doable, some people will think the worst and not bother coming to see your property. This narrows your buying pool.
Yet, there are still many good reasons why selling your home as is could be the right choice for you.
Reasons To Sell Homes As Is
For the most part, homeowners should avoid selling a home as is. But, there are several scenarios where selling a house that needs work makes sense.
You Can't Pay for Repairs
If you are in a financial situation where making repairs to the property is not possible, selling a house that needs work may be your only choice.
But before you decide to move forward, speak to one of our agents. We may be able to help you come up with solutions to help you avoid selling as is.
You Can't Handle the Stress of Preparing to Sell
Some homeowners become stressed at the thought of staging and getting a home ready for the market. The drawn-out process of selling a house might be too much for some people. Especially if you or your family member is ill.
Selling as is might make be the best option in these scenarios. Yet, make sure to explore all your options before you commit. You likely will get a better price if you work with your agent to make the home as good as possible before selling.
Yet, if you do decide to sell a home that needs work, here is the best way to go about doing it.
The Best Way to Sell a Home As Is
When you are selling a home that needs work, you want to avoid saying "as is" in your listing.
This phrase is a red flag for many people and as we mentioned will deter many buyers.
It's better to attract as many potential buyers as you can by listing your house normally and letting the offers come in as usual.
Remember, though you can't be dishonest. You must let any interested buyers know that you intend to sell the home without doing the repairs.
It's better for the buyer to find out about the issues from you than to wait for a home inspection.
Many buyers assume that any issues found during a home inspection will give them leeway to negotiate more. But that's not true when selling a home as is.
Avoid any appearance of dishonesty by letting buyers know that you will not negotiate on repairs.
All in all, though you must let buyers know that the home is for sale as is, you don't have to let potential buyers know that straight out of the gate. Choosing the right time to reveal this information gives you your best chance of selling your property quickly and for a fair price.
Bottom Line
There you have it! A detailed explanation of everything you need to know about selling a house as is.
Are you ready to put your home on the market? Contact Palmer Realty today. We can help you get started.