Selling a Home As Is: The Pros and Cons
If you are thinking of selling your home, you may be wondering if you should make needed repairs or simply try selling your home as is. Although selling a home as is sounds easy, it may not be as easy as you think. It is true that you won’t have to make repairs, but selling a home as is can be quite stressful.
What Is Selling a Home As Is?
When you choose to sell a home as is, you intend to sell the property as it currently stands. You will not be making any repairs, and the buyer will purchase the home knowing that there are faults and issues.
Unfortunately, selling a home as-is does not rid you of the obligations that come with selling your home. Just because you tell a buyer that the home is “as is” does not mean that you aren’t required to disclose the issues. Legally, you will still be responsible for answering questions about existing problems based on Florida state rules.
Your realtor will also be under the same obligation. If they know of issues, like a leaky roof or flooding basement, they have to tell the buyer before accepting an offer.
Pros of Selling a Home As Is
There are some situations where selling a home as is makes sense. If you fall into one of these categories, then this might be the best option for you:
- You have no money for repairs: Some homeowners simply do not have the funds to make any repairs. However, since selling “as is” can be tough (see the cons below), you may want to discuss creative solutions to fixing the property before deciding on this option.
- Too much stress: For people who are elderly or sick, selling a home as is may make sense. By doing so, the homeowner doesn’t have to clean, paint, or make repairs. Of course, there are some options such as hiring professionals or getting friends and family to help in order to get a better price for your home.
- Financial distress: You need to sell your home immediately due to financial distress and don’t have time to make repairs. If you find yourself in this situation, you may want to consider selling your home to an investment company. These companies often buy homes from distressed sellers and can do so quickly and with little hassle.
Cons With Selling a Home As Is
There are many negative aspects to selling a home “as is.” That’s why, unless you fall into one of the categories above, you should consider alternatives. Here are the main problems you’ll face if you decide to sell as is:
- Buyers will have a negative view: When a buyer sees a homeowner selling a home as is, they assume that the house has big issues. They assume that if the problem were easily fixable, you would have fixed it yourself. Since you didn’t, it must be bad.
- Low-ball offers: As soon as you put “as is” in your listing, you will start getting offers that are significantly below your asking price. Buyers assume that if you are selling a home as is that you must be in dire straits.
- Prove your home’s value: You’ll have to go to great lengths to prove that your home is worth what you are asking. Because buyers assume there is so much wrong with the house, it will be an uphill battle.
- Buyers won’t trust you: They will assume that there is something terribly wrong with the house. When you say there is no big issue, they won’t trust that you are telling the truth.
- Fewer buyers: Many buyers do not want to buy a fixer-upper. When they see the term “as is,” they decide not to look at your home.
Every home seller has unique needs. Selling a home as is can work for some sellers, but in most cases, it is not the best course of action. If you have issues related to selling your home, give us a call. We’ll talk with you about your options to help you sell your home as quickly and easily as possible.