If you have viewed Real Estate homes for sale on popular websites, you scroll thru the description and read the term that the home is being sold “as is.”
Do you have a home that needs some work? Selling your house as-is can be the best way to get it off your hands and make some extra cash.
When selling “as is” there are a few things to keep in mind before you sign on the dotted line.
But don’t worry, we’ve got you covered with this blog post we are going to discuss what it means to sell the property “as is!”
What the heck is selling a home as is?
Read on for tips on how to sell your home as-is and what pitfalls to avoid.
1. What is selling a home as is, anyway
If you’re not sure what to do with your home and don’t want to put in the time or money into fixing it up, selling as is might be a good option for you.
So you heard of this term “selling as is,” but what does that actually mean?
When you sell a home as is you are letting everyone know that you are not willing to do the necessary repairs to bring the home up to current standards of today.
When you sell your property “as is” you are giving noticed to everyone that you are not going to make any requested repairs.
It telling everyone that you are not about to put money into fixing the place up.
It also means that any defects in the home will be passed on to the new buyer.
So if you are buying a home “as is” you have to be aware that you are taking the home in it’s present condition including all of the defects that the property might have.
When you sell your home “as is” you are not going to make any necessary lender required repairs as well.
So the buyer will have to be responsible for doing any repair work after the property has sold.
When you sell the home “as is” it means that you are not going to clean up the property or declutter the property.
It also means that any defects in the home are disclosed up front.
2. Why should I sell my home as is
This is the question that most homeowners ask themselves. The answer to this question is it would actually depend on your current situation and on the current fix cost budget you have available.
If you are facing issues with job loss, or having to pay off medical bills-or any other issue which causes you not to have available cash then selling “as is” might be best at this point.
So why would someone consider selling as is? It could be due to wanting a quicker way of getting out of a property. Also the stress of dealing with the maintenance on the property.
There can also be stress: trying to manage both work and family life.
Recently, there’s been a lot of talk about the benefits to selling your house as-is. But the question you have to ask yourself is how much time do you have to fix the property up?
3. The benefits of selling a home as is
The benefits of selling your house as is includes: saving money on cleaning and repairs, quickly getting rid of items you don’t want anymore, avoiding hassles with staging and potentially attracting more buyers!
Selling a home as-is means you will be able to get top dollar for your property without the need of costly repairs or extensive renovations. Whether you’re looking for an easy and quick sale, downsizing, or simply just don’t have the time to deal with it all; selling your home “as is” can save you from hassle and headache by providing peace of mind that everything has been taken care of.
The best thing about selling a home as-is is the lengthy list of perks that come with it. You get to bypass expensive upgrades and avoid hiring contractors or repairmen, which can be difficult for those who don’t know much about them. You can simply say to the buyer the home is being sold “as is.”
Keep in mind to also use the Seller’s Disclosure form to disclose everything that you know is wrong with the property.
4. Pros and Cons of selling your house with no repairs made
Selling your house with no repairs made is a great way to exit your property.
However, it can be difficult to find buyers if you don’t do any renovations before putting the property up for sale. If you’re considering this option, here are some things you should know:
One thing that can help in the process is hiring a home inspector to inspect the property to be able to tell buyers what is currently wrong with the house.
When you have your own inspection done you are giving the buyers the necessary information needed to know what exactly is currently wrong with the property.
Pros: You will have a report to hand to all buyers letting them know upfront what is currently going on with the property thru the inspection report.
Cons: The price of the home inspection could cost you an out-of-pocket expense.
The price depends upon the square foot of the property. You can check out local home inspections and find out how much they charge to do a home inspection.
Another thing when selling your house with no repairs you will have to consider that the property might not go FHA or Conventional.
FHA requires that the property is in livable condition. That means there can’t be anything majorly wrong with the property or the property would have to less work needed to qualify for FHA 203B Loan.
Another alternative would be for the buyer to go FHA 203k.
This loan would qualify for the property if the property needs a lot of work.
Some conventional loans also require that the property is in livable condition. If there are major foundation issues not minor, or if there are holes in walls and structural issues it’s possible that it won’t qualify for conventional.
Pros: You can sell the property to cash buyers or buyers who can qualify for FHA 203k loans. Cash buyers would mean quicker closings, less money out of pocket.
Cons: You will have fewer buyers to choose from when it’s time to place the property for sale. You will be leaving out buyers who qualify for FHA 203B and Conventional loans. Also, you would be going to investors who will offer sometimes less than what’s owed on the property.
5. Should you hire an agent to help you sell your house or do it yourself
The decision to sell your house is a big one and often requires an emotional response.
There are many ways to go about selling your home, but the most common two routes are hiring an agent or doing it yourself (DIY).
Let’s look at why some homeowners choose to do it themselves. One of the main reasons that comes to mind is that the homeowner wants to save on the commission cost.
Although they tend to go for the FSBO which is For Sale By the Owner. One of the things that homeowners don’t realize its a lot of work involved in getting your home prepared to sell.
Although you want to sell the home “as-is” there is a good rule of thumb to follow to make the home presentable and get the home in showing condition.
If you feel you have the time to answer phone calls, set appointments, and the skills then it’s possible to get the home sold on your own.
However, working with an agent can save you time and money as they know what steps need to be taken in order for your home to show well and get top dollar.
Plus remember that commissions can be negotiated.
What if my house doesn’t sell quickly? This is another question that homeowners ask themselves. This will depend on the market your in and where the home is placed in the market.
This also depends on your expectation. If you saw someone sell the home down the street and you go to Zillow and you see that the home sold for top dollar and you’re trying to sell your home “as-is” without the same updates like the one you saw on Zillow the question to ask yourself is this.
If I was searching for a property would I buy my home for top dollar? If you answer no then you know you are over-pricing your home in the market.
And you would need to reconsider how much you’re asking for your property.
The other thing to consider is when you list with an agent you tend to get more money for your property than if you tried to list the property yourself.
Sometimes when you list with a Real Estate agent. A Real Estate Agent typically can get you more money at closing even when you want to sell your property “as is.”
Conclusion:
When you’re selling your home, it’s up to you if you want to fix the property or sell as-is. There are benefits and drawbacks of both strategies but ultimately the decision will come down to your personal preferences.
The benefits of selling a home as-is are that there may be fewer costs and time spent when listing the house for sale if no repairs need to be done beforehand.
You also don’t have to worry about getting estimates from contractors or worrying over how much money will go into fixing up your property.
Should you hire an agent to help you sell your house? It all depends on your needs.
We hope this article helped answer some of your questions about what “selling a house as-is” means and why people might choose that strategy for their own home sale in the Frisco Texas area and Dallas Fort Worth Texas area.
If not, please let us know! Our team is always happy to help make sense out of all those confusing real estate terms so don’t hesitate to contact us with any unanswered questions or concerns!