Are you looking to sell your house?
You might have doubts about whether to fix it before making a listing. After all, homeowners spend around $21,000 before selling their house. The expenses cover repairs, agent commissions, and other fees in between.
If you have insufficient money for these expenses, selling your house as is seems more appealing. As is house sales means a buyer purchases the home in its current condition. The buyer is aware of the issues and will purchase it regardless.
Before putting up that “for sale” sign, crucial factors will tell you whether forgoing the repairs is the right move. Our guide can help. Continue reading below for tips about selling a house as is.
Current Market Condition
The first factor to consider before selling your house as is would be the current real estate market. During a hot real estate market, sellers can find buyers in a matter of days.
In this period, the supply of houses is low while the demand is high. In turn, sellers gain pricing power for their properties. Several buyers line up for a single home, trying to outbid one another. Since it is a seller’s market, you will likely get away with selling your home without repairs.
On the flip side, you will have a hard time selling your home during a buyer’s market. In a slow market, home hunters do not put much effort when dealing with decrepit properties. With the abundance of homes for sale, they have the luxury to move on to the next available option
Can you sell your house as is during a buyer’s market? Yes, you still can, especially when your reason for selling is you are moving to a new place soon. Find a top-notch agent to help sell it faster.
The competition of similar houses also affects your home’s selling power. Invest in comparative market analysis (CMA) before listing your home. A CMA report will give you a better perspective of recently sold homes in your area.
Understanding Your Potential Buyer
Selling your house as is also involves understanding your potential buyer. Most homebuyers want houses requiring little to no repairs.
About 42% of younger home hunters prefer fixer-uppers. Either they want “as-is homes” good enough to crash in at night or make a profit through house-flipping. Expect house flippers to ask for a discount to offset the potential repairs.
If you’re selling your property, a fixer-upper buyer may offer to buy it for as low as $75,000 due to roof repairs. With that price, it is wiser to spend $10,000 on a new roof than sell your home for $100,000.
You may also attract a group of buyers who cannot buy more expensive houses. They will look to negotiate for a lower price. When the sellers desperately need the money, they are more likely to agree.
Sometimes, sellers let go of their houses to avoid foreclosure. With time against their side, they may agree to a lower offer, more so during a buyer’s market.
The Proper Way of Selling Your House As Is
If you choose to list your house as is, provide disclosures to your buyers since it is a state requirement. Keeping information about the home’s condition can lead to a lawsuit.
Legal requirements for disclosures vary per state. Connect with your trusted real estate agent for guidance on state disclosure laws. They can also help highlight your home’s strongest selling points.
Label your listing “as is.” Failing to do so means you are offering a regular sale. Proper labeling tells buyers upfront they need to do some fixing.
A pre-listing inspection also boosts your chances of selling faster. The inspection tells the specific issues of your property. They can present non-contingent offers quickly, saving all parties more time and resources.
Once you’re ready to sell, you have two options: a cash offer or the open market. Requesting a cash offer means offering your home to a pool of buyers who do not care about your home’s condition.
These buyers can be flippers, rental investors, and house-buying firms. They have a lot of capital to spend on expensive repairs.
If you decide to sell on an open market, find an agent with experience in selling “as-is” homes. You may need to do some cleaning or sprucing to help the agent market your home faster.
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When to Repair Your Home
Choose the repair route if you are not in a hurry to sell the house. Make sure you also have enough savings to cover vital repairs.
Focus on fixing the essentials like replacing an old roof. Replace damaged shingles and add some weather stripping. Make sure the gutters are working to keep water from accumulating.
Revisit the electrical work and fix any faulty wiring. Replace any missing wire nuts, frayed wires, and damaged junction boxes. The circuit breaker should also meet your home’s amperage.
Call a plumber to check on your faucets, showers, and toilets. Seal any leaks since they cause water damage in the long run. Address existing water damage or mold infestation as soon as possible.
Check your home foundation integrity. Hire an inspector to check for any foundational problems. Keep an eye for visible cracks on the walls, slanted floors, and gaps above cabinets.
Lastly, make sure your HVAC is working. Consult the home inspector about the quality of your indoor air. Resolve any ventilation problems to maintain HVAC efficiency.
Learn More About Home Improvement
Selling your house as is while using these tips makes it more feasible. With proper planning, you can still get your desired value without waiting for the right buyer.
However, learning how to sell your house as is is not the only topic to learn about real estate. Consider studying the added value of repairing your home as well.
Did this guide help? If so, read our other posts for more.