Selling a home as is means that a seller wishes to sell the home without making any major repairs. The buyer understands that what they see if what they get. However, this does not mean that the seller won’t have to make repairs to bring the home up to required standards needed by the buyer’s mortgage company. Nor does it mean that sellers do not have to disclose known issues.
To make sure that selling your home as is goes smoothly, here are some tips to consider.
Before putting your property up for sale, it is a good idea to understand the condition of the property. This will help you choose a listing price for your property that will make sense for the buyer and the buyer’s lender.
Additionally, knowing the issues before selling a home as is will allow you to list these issues to potential buyers. They would much rather know the problems beforehand than discover them on their own during due diligence. Buyers who discover issues on their own often walk away from the sale.
Although you won’t be making the repairs when selling a home as is, it is wise to get estimates from reputable contractors for the repairs. By having the price for repairs available to potential buyers, they will feel more secure making an offer.
Keep in mind that buyers often assume repairs are more expensive than they really are. If you need a new roof, you’d rather the buyer know the true cost than assuming something that is three times the actual amount needed.
All potential buyers should be given both the inspection report and the estimates. This will give them a baseline to work from as they consider an offer on your home.
Although your plan is selling a home as is, you may want to consider making a few small repairs or renovations in order to help the home sell faster. This is especially true if there are several concerns listed in the inspection report. Many buyers are willing to take on a few issues, but too many will scare them away.
When your real estate agent provides you with comps, the owners of these comps are not likely selling a home as is. Therefore, you will need to list your home at a price that takes into account the repairs that the buyer will have to make.
All the marketing material for your home should state that you are selling a home as is. Additionally, all contracts should also state the “as is” status. If you are upfront about selling as is, then buyers won’t be shocked to learn that you are unwilling to make repairs.
Even when selling a home as is, many buyers want to negotiate with you to make certain repairs or to reduce your price to account for those repairs. As the seller, you need to remain flexible in price as well as the concession to make repairs.
Remember, selling a home as is can set off alarms in a buyer’s head. They wonder what issues are associated with your home and expect the worst. By being upfront, providing documentation, and pricing the home correctly, you should be able to find a buyer for your home. If you are selling a home as is, please give us a call. We can help you determine the best strategies.