Selling a house is as strenuous of an endeavour as buying a house, if not more. With the amount of paperwork and research that needs to be done, it’s tempting to skip pre-sale home improvements. You may be wondering what the pros and cons are of selling a house just the way it is and whether you’re losing more money than saving.
As stated in an article about selling a house as is basics by ISoldMyHouse.com, selling a house as-is seems like a no-hassle way to put your home up for sale without having to make repairs. However, it doesn’t mean that it’s the least challenging or financially sound choice. Before you put your home up for sale without making any changes, here’s what you need to know.
What Does it Mean to Sell a House As-Is?
“Selling a house as-is” means selling a property in its current state. The seller doesn’t perform any pre-sale home improvement, and the buyer must agree to buy the house without repairs and with all of its current problems.
The sale requires the buyer to sign some paperwork that goes into detail regarding what’s wrong with the property. It also means that the seller is obligated to disclose anything and everything that’s wrong with the house.
What Selling a House As-Is Doesn’t Mean
Selling a house as-is doesn’t mean you can ignore potential hazards and things that need to be done. For example, homeowners are legally required to be transparent and about the house’s current state.
It’s also prohibited in many states for sellers to intentionally hide defects or misrepresent any problems with the house. Some information that sellers usually have to disclose:
- Structural defects
- Signs of mold
- Roof issues such as leaks and moisture
- Plumbing or electrical issues
- External issues like noise levels
- Legal issues tied to the house
The Pros of Selling a House As-Is
So you decided to write your property “as-is” on the listings. Here are some of the perks you can expect by selling a fixer-upper.
Most sellers want to avoid large expenses without losing too much from the final sale. For financial reasons, sellers may opt to forgo interior or exterior renovations, which sometimes can cost more than what you’d get in return. If the seller is in debt, they also may not have the expendable funds to do repairs.
On top of being expensive, home improvements take up a lot of time to complete. If you’re pressed for time, like health conditions, a job change, or foreclosure, you may not have time to spare.
While you can sell quickly, the type of buyer you’ll attract will vary. Instead of average prospective homebuyers, you’re more likely to attract quick buyers such as investors and home flippers.
Solve Inheritance Conflict
So you and your siblings have inherited a home and are conflicted on how to divide it. If a home is outdated or no one is interested in dealing with it, selling the home as-is can eliminate most of the stress. Once it’s finalized, the family can distribute the profits as they see fit.
Attract Cash Buyers
There are house cash buyers that tend to buy homes quickly in exchange for a lower price. While it has the lowest return, there are benefits for those that want a quick and easy sale.
The bright side of selling to a cash buyer is that you don’t have to work with realtors or fees tied to selling a home. You also get the cash in hand right away and speed up the sales process. The best of all is that you don’t have to deal with the legal issues since the buyer assumes all liability.
The Downside of Selling a House As-Is
Now you know the benefits of selling a house as-is, let’s look at what to be wary of. Here are some factors to consider before putting your home on the market without pre-sale home improvements.
Low Ball Offers
Discussing the home inspection and needed repairs with the buyer could lead you to sell the property for much less than what it’s worth. Labeling the house “as-is” will attract buyers looking to haggle and buy a home for a large discount.
Disqualifies “Move-In Ready” Buyers
When potential buyers see a home listed “as-is” they will instantly think something is wrong with the home and may assume it’s not worth the time or headache. Unfortunately, it decreases the number of buyers that will show interest in your home.
There are concerns and additional precautions that come with selling a home without working on it first. To ensure the safety of the buyer, there are extra steps and paperwork involving both parties to disclose what the sale entails.
Every situation and home sale is unique. Certain properties have specific needs that may benefit more to be repaired than sold as a fixer-upper – especially when it comes to attracting the right seller. Consider and compare the expenses between pre-sale home improvements and selling as-is so that you can sell your home on your terms and for the right price tag.