The U.S. Census Bureau reports that homeownership in the U.S. has grown to 67.4% in the last quarter of 2020. Many people dream of owning a home, but financial constraints are a hindrance. If you’re selling your home as is, the chances are that your pricing is fairer than most listed houses.
For a first-timer, selling a house without renovations might sound ridiculous. Yet, it is possible to sell your home with that leaky roof and 1990s kitchen cabinets that you have never upgraded. How is that possible?
If you’re time constrained and need money as soon as possible, you can sell your house as is. Read our comprehensive guide below to know more about selling your home as is.
What Is Selling Home as Is?
Selling a house as is simply means selling a home without making any improvements or repairs. So, a prospective buyer knows that what they see is what they get. The catch here is often the money and time as the buyer gets it at a lower cost, while the seller gets it sold quicker.
Selling as is could be the best option if you don’t have the money and time for repairs. The buyer has to know all the flaws before buying. Most states have the ‘as is’ as a legal clause, meaning that buyers need to sign the purchase agreement that states the house’s condition.
The law requires sellers to make accurate disclosures about the property. However, buyers also need to ensure that they have consulted with professional home inspectors to know what they are getting themselves into. As a buyer, it would be best to know some of the things to ask during a home inspection to avoid costly mistakes.
Pros and Cons of Selling a House as Is
It is crucial to know the pros and cons of selling a fixer-upper to help you make the right decision. The pros of selling as is include;
You’ll Save Money
A 2018 study showed that homeowners spent about $6,649 in one year on home improvement. Repairs and upgrades can be quite costly. When selling a house without renovating, you’ll save yourself these costs.
Repairs take considerable time to complete. If your house listing depends on the repairs, you might have to wait a little longer. Without doing any repairs, you can list your house and get a cash buyer sooner than you imagine.
Some of the cons of selling your home as is that you need to know include;
It’s a no brainer that selling a house with issues will attract lower costs. Buyers can make the renovations issues their point of negotiation. It is crucial to know your home’s value to avoid selling at a throwaway price.
You might want to have a home inspection checklist to understand the faults in your house. The information will help you price it right.
The first impression matters in home buying. Many prospective buyers might get enticed by the lower price of a home but end up bailing out after seeing the pictures or the repairs needed. You might have fewer offers, but that doesn’t mean your house won’t sell!
How to Sell Your House as Is
If you have decided to sell your home as is, kudos! The process is pretty much the same as the typical home sale, only that you won’t experience stress in home staging. Here’s a basic approach that you might want to follow;
Consider a Home Inspection
It is crucial to have a professional home inspection before listing it for sale. With the stringent disclosure laws in most states, the last thing you’d want is mistakes in disclosing defects in a home. You could get sued and end up losing more.
A professional home inspection makes potential buyers to trust you. The assessment will help you get a serious buyer faster.
How Much Would the Repairs Cost?
It is easier to establish the cost of repairs after a thorough inspection. Knowing the cost of repairs will give you more negotiating power as most buyers will try lowballing your prices. Have a list and a comprehensive budget for the repairs.
A disclosure report is indispensable when selling your home as is. The report indicates all the faults in the house. This disclosure will prevent buyers from backing out with an excuse that they were not aware of the defects.
You can check with your real estate agent to know the disclosure requirements in your state. The right information will help you to be on the safe side of the law.
By the time you’re done with the inspection and researching the repair cost, you’ll have a cost estimate of your home. You can focus on your home’s positive aspects, such as the floor plan, size, and location, to boost your confidence when pricing.
If you have lived in the home for years, the sentimental value you attach to the house might tempt you to overprice. It’s crucial to research more to ensure that you price your home accordingly.
Make Small Renovations to Improve Your Listing
While as-is house selling doesn’t involve any renovations, minimal touch-ups here and there can increase your chances of getting a potential buyer. Small improvements will enhance your curb appeal. As a result, you’ll have more chances of a successful and quick sale.
Upgrades such as a new coat of paint and mowing the loan shouldn’t cost you much. Yet, they can change how buyers view the property. Check out the low-cost improvements that you can make before listing your home.
Selling Your Home as Is Could Be an Ideal Option If You Want to Sell Fast
Home repairs and renovations can be time consuming and expensive. If you want to sell your property faster, selling your home as is would be a great option. It is crucial to understand this approach to home selling to make it easier for you to get your home’s right value.
If you need to sell your house as is, start by getting a professional home inspection. You can schedule an appointment with us to make the process seamless.