You want to sell your home, but you know that the repairs from inspections will be extensive, or maybe you want to be upfront with buyers that like to dwell on every imperfection. Either way, if you’ve decided that you want to sell your home ‘as is’, you’ve probably asked yourself how you will go about this, and if selling it ‘as is’ will chase away prospective buyers ready to make an offer. Keep reading on and we will break down what you need to do to get that house off the market.
So just as a clean cut definition, selling a home as is means that the home is a fixer upper and will not be improved or repaired prior to selling. Keep in mind that most purchase contracts include a inspection contingency, meaning that the offer is contingent upon the buyer accepting the inspection results, so even if you did list ‘as is,’ they can still pull their offer if they find something in inspections that is a dealbreaker. Decide that if it does come down to this, if you would be willing to meet them in the middle.
GET AN EXPERIENCED REAL ESTATE AGENT
You want to work with an agent that has dealt with an as-is property before. With their expertise, they’ll be able to advise if selling ‘as is’ is your best option. In some cases, it might be better for you financially to get repairs done because then you can get the house appraised at a higher price. The two options that your realtor will present are either finding a cash buyer or selling on the open market. Also keep in mind that if your reason for selling ‘as-is’ is because you don’t want to repaint the kitchen, selling it may backfire because when buyers see ‘as-is,’ they assume there is a HUGE problem with the home, and it communicates to the buyer that you’re not willing to work with them.
CONNECT WITH A CASH BUYER THAT SPECIFICALLY BUYS AS-IS HOMES
This would be your investors and people that flip homes. Keep in mind though that this may involve negotiating your price because investors essentially go in with the goal to pay less rather than more to meet their ROI (Return on Investment) as quick as possible. There are sites that facilitate finding cash buyers, such as “Simple Sale” where it will match you with the right buyers with the highest bids based on the details of your home. This will make the process much easier.
MAKE SURE YOU DISCLOSE EVERYTHING TO THE BUYER
Mention all the issues with the home to the buyer. Just because you are selling as is, doesn’t mean this is a scapegoat to not tell them about your decaying roof or your termite problem. Not being upfront can backfire and hold you liable for things even after the close of escrow. So long story short: just be honest!
ALTHOUGH IT IS ‘AS IS,’ DECLUTTER THE HOME
Clean and declutter the home. Have it deep cleaned, replace appliances if you can, update some things, and get rid of unnecessary clutter. Yes, the home is ‘as is,’ but you will sell the home quicker and possibly for more if you do these things. In the end, taking this step will be worth it.
At the end of the day, selling your home as is will not be an easy task. It closes up the potential pool of buyers and may involve more negotiating, so make sure that this is the route that you want to take. If it is, a real estate agent will walk you through the process to make it as painless as possible. Know what your goals are with selling it, and if you have the money to improve the home prior to listing, always take this option, because often times, it results in a large return. Once you’ve determined all of that, get out there and sell that home!