With the changing of the times, as well as the changing of the financial landscape of the United States, there has been a stark increase in the number of people selling their homes “as-is”. While it sounds interesting, it’s important to bear in mind what this could mean for you, and also the buyer, and the neighborhood. While selling a home with minimal effort is a possibility that’s attractive to anyone, it’s important to be aware of both the great things and the negative aspects of this possibility.
What It Means
“As-is” could mean different things to different buyers – for some, it is an opportunity, but for others, particularly those who are inexperienced in the home-buying process, it could easily turn into a disastrous money pit of never-ending repairs and expensive maintenance. When a homeowner needs to sell their home quickly, and lacks the funds or time to properly repair and advertise their property, their best option is selling the home in its current state. Selling a home as-is gives a homeowner a quicker and easier way out than they had when they purchased the home.
When a home is sold as-is, a buyer can choose to immediately occupy the home, repair the home and sell it at a profit, or wait for repairs or remodeling to be completed before taking over the home as a resident. However, if your house is in disrepair, it could mean trouble for the buyer, who might spend large amounts on the repairs. These repairs don’t account for any necessary updates the home may need. If you are planning to sell your house as-is, the best way to make things easier for yourself is to remain flexible about the future of your home, including how much money you expect to receive from the proceeds of the sale.
The Good and Bad Sides of Selling As-is
As will every option for buying and/or selling your home, selling your home as-is requires some thinking. It’s strongly recommended, always, to seek the assistance of a real estate agent, or another real estate professional. You may find another option that will fit your needs without having to do something as rash as immediately releasing your home to your lender, or to strangers.
The Good Side of Selling As-Is
- It can help the homeowner to save their credit – it’s often the case that an as-is sale occurs because the homeowner can’t afford to pay the monthly mortgage. Defaulting on your mortgage will leave a huge, ugly stain on your credit. Other circumstances, however, can also necessitate a quick sale of a home. The death of a homeowner without relatives who can’t or won’t take the home is also a common reason for a quick sale of a home. Whatever the reasons are, selling the house as-is gives them the chance to save the house before it’s foreclosed, or worse.
- It helps the seller avoid a lengthy sale process – Selling a home is tough, and part of what makes the process so long is preparing your home for sale. Selling a home as-is means that your home enters the market immediately, or close to it, and gives you the chance to see the profit from the sale sooner. if you don’t like processing papers then selling as-is can help you with that. This also gives you the chance to avoid too much expenses on repairs and puts your house in the market right away.
- Helps you get rid of bogus buyers – plenty of people will ask for information about any property that you might own, but only a few of them will follow up, unless you have a property in a popular area. In those cases, making a quick sale could be really, really quick. In a traditional sale, you’ll inevitably host a string of people who aren’t seriously interested, but getting around this stage of selling your home is possible when you sell your home as-is. Not only will you be able to skip the crowds of people in your home, you’ll also be able to more quickly find a serious buyer. Bear in mind that at least some of the interested parties will be real estate agents whose goal is to purchase a property, update and repair it, and sell the home for a higher price than they purchased the property from you.
The Downside of Selling As-Is
While it sounds dreamy to sell your house the way it is, there are still some downsides to it. Knowing the disadvantages will prevent you from jumping into a sale that doesn’t fit your goals.
- Your house could sell for less than the Fair Market Value – particularly when dealing with private homeowners, it is difficult to receive anything close to your home’s actual value while selling your home as-is. The cost of repairs impact the value of your home, though, so remember that the goal of the new homeowner will be to make the home more saleable, or in some cases, more livable.
- You will have few offers – Most buyers won’t want to purchase a home without knowing, for sure, what they’re getting into. This cuts down substantially on the number of buyers, but those who are still interested in your property will follow up with you, or with your real estate agent. This is one of the reasons that hiring a real estate agent is important when you’re selling your home, but even more important when you’re selling your home as-is: a real estate agent will know how to properly network and advertise your property to prospective buyers.
When to Sell As-is
So why should you consider selling your house as-is? Besides the obvious benefit of a quick sale, other considerations might make this the right move for you:
- It could help you save money. You don’t have to stage your home so people can view your house. You don’t have to worry about exterior and interior repairs or updates if you sell your home as-is. Instead of investing in the home you no longer need, you can use that money for other important things.
- Selling as-is can be done immediately, as long as the buyer is interested. Remember, you don’t need to wait for repairs or updates, and someone interested in purchasing your home, especially for cash, can be legally required to pay the whole amount immediately.
- You can also sell to someone who has the cash at hand. Again, selling your home for cash means that you will be out of your difficult financial situation sooner than later. This also allows you to avoid any legal issues since the buyer is handling the property and all its liabilities.
Make sure that you have a conversation with a real estate professional before you go all-in with your as-is sale. There could be some things that you’ve missed, but a local real estate agent can help you.