There are many reasons why someone would choose to sell their home as is. For some, it’s the practical matter of needing to move quickly for work and lacking the time to invest in upgrading and staging the home. For others, it’s a lack of desire to invest more time into the home, and the willingness to accept whatever is offered.
Whatever the reason may be, it’s important to understand what selling a house as is means, and how to make it a beneficial transaction for all parties involved. Here are some essential tips for selling a house as is.
Get a Pre-Inspection
For many homebuyers, seeing the “as is” declaration on a home can be a red flag. It creates preconceived notions that something is seriously wrong with the house. On the contrary, it is illegal in many areas to sell a home as is when there is structural damage or radon present. In other areas, all serious issues must be disclosed. Failure to disclose the presence of mold, legal issues, termite damage, etc. could result in a major lawsuit down the road.
Getting a pre-inspection is one way to dispel any concerns that potential buyers may have. This shows that the seller is being transparent about what may need to be fixed on the house before selling it. As a sign of good faith, the seller is paying for the inspection rather than putting the onus on a potential buyer.
In addition to getting a pre-inspection completed, it can be helpful to get quotes or estimates from local contractors regarding the investment required to fix the house. While many people who look for as in house have trades backgrounds and can handle many of the renovations themselves, having this information available can help potential buyers make a decision.
Many sellers skip this step out of fear that they’ll miss out on potential buyers who are turned off by the costs presented to them. In reality, it’s fear of the unknown that creates the biggest barrier for buyers looking to purchase an as is house.
Reach out to local service providers for quotes and choose the best ones to present to your potential buyers.
Offer a Cash Sale Incentive
In many cases, the motive behind selling a home “as is” is a quick sale. This creates ample opportunity for both the buyer and the seller to save money. Not only will the seller save by not investing in upgrades and staging before selling the home, but the house can easily be sold to a cash buyer for a discount incentive. This could either be an individual looking for a fixer-upper or a home buying agency that purchases and flips homes.
It’s important to recognize that there are challenges as an inexperienced buyer looking to take advantage of an as is property. Forgoing proper legal counsel or realtor expertise can be risky, especially for first time home buyers.
Set the Right Price
Accept the facts: you aren’t going to get as much money as you would if you were planning on doing the work before selling. Simple renovation tasks can dramatically increase the resale value of your home. When you sell your house as is, setting the right price is crucial for getting the sale.
First and foremost, don’t try to price the house for more than it’s worth. You may think you’re wise, but it’s very obvious to potential buyers, especially if they’re working with a buyer’s agent. On the other hand, you want to ensure that your costs are covered and that you aren’t selling your home for less than you owe. Talk to your mortgage provider and have your home appraised before putting it on the market, especially if you’re trying to refinance your mortgage through this sale.
Be Open to Negotiation
As previously mentioned, if you’re selling your house as is, you’re already preparing to sell at a lower cost. So when setting the price, it’s important to give yourself a little wiggle room for haggling. Even at a great bargain, it’s human nature to want to get a better deal; expect your potential buyers to want to negotiate.
Of course, there’s always a chance that the right buyer will come along and offer to pay you the asking price. However, in this instance, it’s better to be prepared for the alternative. Again, as long as your fees are covered, you’re still in the clear.
Just because you have the idea of selling the home as is, doesn’t mean that potential buyers can read your mind. Be sure to declare your intention in any home listings and make it clear from the get-go so that there is no misunderstanding later.
Failure to make your intentions clear can cause confusion that will ultimately delay your transaction. It can also make you legally responsible for any issues that weren’t readily apparent to the buyer at the time of purchase.
Consider Light Renovations
At its core, selling a home as is means not having to put any work into making it “sellable.” However, sometimes deciding to do simple upgrades makes a big difference in what you can sell your house for. Take an objective look at all the things that have to be done and think about if there are any projects you would be willing to take on before putting the house up for sale.
For example, if the trim isn’t finished in your basement you could do this relatively easily and increase the value of your home. Even if it doesn’t boost the asking price, it might make potential buyers more interested. Simple things like replacing leaky faucets and touching up the paint can go a long way.
Improve the Curb Appeal
While you may not be willing to invest in any upgrades, some of the same principles apply when selling your home as is. First and foremost, take care of your lawn to make it presentable. Potential buyers will be turned off by overgrown weeds and junk, regardless of if the home is being sold as is or not. Cleaning out old gardens, keeping the lawn mowed, and trimming back any deadwood can make a significant visible impact on your home.
Also take time to keep the inside tidy for viewings, so that your potential buyers see the house rather than clutter. This simple form of upkeep can go a long way in making the sale. When you’re moving, it’s ideal to go through your belongings to declutter and reduce the number of boxes you’ll need to transport. Start that process early so it’s easier to keep your home clean. While most realtors recommend having some furniture present when selling a home, you’ll have a bit more leeway when selling as is.
If you’re considering listing your home as is, it’s still worthwhile to have a professional realtor take a look and provide insights. Your home may not require as much updating as you think to make more money and a realtor can assist with a quick sale. Make sure you take the time to understand what constitutes an as is sale, and what you’re legally obligated to disclose.