Want to sell your home fast, but don’t want to do extensive renovations and repairs? Maybe you can’t afford to do the renovations, or they’re too time-consuming. With limited options on the table, you can opt to sell your home as-is. In short, you’ll be selling your home in its current condition without making any repairs.The buyer can always look into a home improvement loan after the purchase.
Selling a house as is comes with its own challenges, but there are a few things you can do to meet those challenges. Here are a few tips for keeping buyers interested when selling a house as-is.
Understand What Needs to be Done
If you’re considering selling your house as-is, you should understand that most lenders insist that a home should not have structural, safety, or health issues before lending to money to buyers. And because most buyers get mortgages to finance their home purchase, it means that if your house has code violations and you opt not to fix them, you may limit the number of potential buyers to only those who can pay cash.
Even then, you should expect to get a bargain price. Selling your house as-is may get you a lower price, but working with an agent can help you position your home as an excellent opportunity for cash home buyers, home flippers, investors, or buyers looking for flipper-upper opportunities.
Know that Disclosures are Required
While selling a house as-is means ‘what you see is what you get’, state laws still require you to provide complete disclosure of the condition of your home. That means that the buyer will expect to get a complete home inspection report outlining the problems that are not visible. The term ‘as-is’ needs to be clear in the sales agreement.
Some of the vital things to disclose to potential buyers include:
- Heating system problems
- Whether your home is located in a flood zone
- Sewage system problems
- Basement water seepage/dampness
- Electrical or plumbing system problems
- Any asbestos insulation or building materials
- Any lead-based plumbing or paint plumbing
- Foundation or slab problems
- Siding problems
- Sump pump problems
- Roofing problems
- Fire or/and smoke damage
- Termite, rodent, insect, or pest infestation problems
- Radon levels that exceed the acceptable EPA limit
- Fireplace, chimney, wood, or coal stove problems
Understand the Competition
Before you list your home for sale as-is, do your homework. Tour as many comparable homes as possible and note their amenities and conditions. It’s no secret that bathrooms and kitchens can be the deal breaker in any home sale. Other home improvements may not matter as much.
So, if your home falls short of features and design elements that buyers are looking for, be prepared to get a low price. When working with a listing agent or professional appraiser, let him or she knows upfront that you plan to sell the house as-is so you can get the pricing right.
Have a Plan to Respond to Lowball Offers
Because as-is houses often attract first-time buyers without a big budget, investors, house flippers, and contractors, you should expect to get lowball offers. Don’t take it personally, but instead know what your minimum offer is and be prepared to make a swift counteroffer. Some buyers may be willing to meet you halfway. Knowing what your house is worth is what matters most, then work with that figure as your guide.
Keep the House as Clean as Possible
You might be wondering why you need to keep your house as clean and neat as possible, both inside and outside. But cleanliness makes a huge difference. For instance, if you keep your yard mowed, your beds made, and the clutter out of the way, you can give potential buyers a great impression of your home and a reason to change their minds. If you have some extra money, do some minor repairs to make your home more appealing.
Selling a house as-is comes with its benefits – you can save money, sell your home quickly, avoid stress after inheriting a home, and sell to ready cash buyers. Keep in mind these tips to keep potential buyers interested in your as-is listing.