There are many reasons for selling your home “As-Is.” Perhaps you are selling your parents’ home and you live out of state. Maybe you are pursuing a short sale because you are not able to sell the home for the same amount of money that you paid for it. You have to ask the bank to approve the sale amount and forgive the balance you owe.
In that case, the bank will not allow you as the seller to make any repairs. Perhaps there is so much demand for a home like yours and buyers are willing to pay full price for it without any repairs! Maybe you have to be at your new job in a week and you don’t have time to fix up your home or make repairs.
Four Good Reasons to Sell “As Is”
First if you are selling your home “as-is,” you will be able to get on the market more quickly. “As-Is” sales frequently mean you don’t go through a lot of market prep. For some sellers, speed to market is more important than getting the last dollar in the sale price. Are you moving from the area for a new job? Are you getting divorced and want to be done with the house? Painting a home, redoing the floors, updating bathrooms or kitchen all take time. If a quick sale is your goal, then you may consider selling your home “as is” so that you can list as soon as possible and skip the upgrades and updates.
Secondly, the sale process may be easier and quicker since there will be no inspections and no repairs. You can get to closing more quickly.
Thirdly, evaluate your home, its location and the current market. Is your home in a sought-after location or on a great lot? Is inventory so tight that buyers are willing to compromise on condition just to get a home? Buyers and investors might beat a path to your door. When the land is more valuable than the structure sitting on it, you might be better off selling the property as is. Why renovate or update a house that may be torn down as soon as buyer leaves the closing. I recently sold a home this summer in a hot market with no flooring and lots of shelving on the walls. Since the inventory was so limited we were able to get more than list price and still sell “as is.”
Finally, selling a home “as is” will minimize the amount of money that you have to put out up front. However, it may also reduce the amount of money that you will receive if your home is not in picture perfect condition.
Four Reasons Not to Sell Your Home “As Is”
First, buyers are harder to find when you sell “as is.” Many buyers think that an “as is” sale means that the house is falling down, when in fact there is nothing wrong with it at all. If you decide to sell “as is,” you may want to give a simple reason for your decision to put the buyer’s mind at ease.
Secondly some buyers do not have extra money for repairs after closing. They will avoid your home if it is not in picture perfect condition, even if you have lowered the price to attract them. Many buyers need a home to move right into and don’t have time for repairs.
Thirdly, you may attract the bottom feeders looking for a good deal. They may still try to haggle over price, even when you are offering the property for a great price!
Finally, you may still have to deal with an inspection and the buyer may have asked for right to terminate. If the buyer gets cold feet during the inspection period or if the buyer sees another house that he or she likes better, you may still lose your buyer.
Pre-Listing Inspections Are Valuable
You want to sell your home in “as-is” condition without jeopardizing the transaction once it is under contract. One way to do this is to perform a pre-listing home inspection which you can then share with potential buyers. You may decide to make suggested repairs – or not. If you decide to make the repairs, buyers will appreciate knowing that there is nothing wrong with the house. However, even if you don’t make the repairs, the buyers still will appreciate knowing what they are purchasing and the scope of any potential problems. This is disclosure beyond that given in DC’s mandatory disclosure, Maryland’s disclosure or disclaimer and Virginia’s brief disclosure.
Call the Lise Howe Group at 240-401-5577 or email us at lise@lisehowe.com to find out the value of your home if you make all the repairs and updates and also the value of your home is you are selling your home “As-Is.” You can start the process by clicking right here!
