Category Archives: Real Estate

Is It Possible To Sell Your Home As Is

It’s actually very common for people and home owners to wonder if it is possible to sell their home in “as is” condition. The truth is, almost all home sales are conducted “as is”.

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What Does “As Is” Mean?

Selling your home as is refers to selling the property in the state it is currently in, whatever is broken or needs repairs.

A buyer and a seller must be in total agreement about the fact that the property is in need of repairs and those repairs will not be made and that the buyer is purchasing the property with all of its current problems. This all will have to be spelled out in a contract explaining that the buyer understands this.

However, for the seller this does not mean that they don’t have to disclose problems, and especially serious problems. If you – the seller – know there is mold, major plumbing or electrical issues or things like radon gas, these things must be told to the buyer! Just telling the buyer that they are buying as is will not get you out of possible law suits in the future.

How To Sell As Is

So now you may be wondering if it’s worth it to try and sell your home as is. That all depends on your situation. Sure if you fix and repair everything you will get more money for your home, but sometimes that’s not an option. So how do you go about it? Here is some great advice for listing your property –

  1. Include “as-is” in your listing: Selling your home as-is means that you aren’t going to be spending time making any repairs — what the buyer sees is what the buyer gets. Note that a buyer may still request an inspection, but your agent can set the expectation that no major repairs will be made. Of course, when you sell a house as-is, you’ll likely have to accept a lower sale price than you would if you had completed some updates and maintenance before listing.
  2. Inspect and disclose everything: Another option for selling as-is is to complete a pre-inspection and disclose everything found on the inspection report. Again, you’ll likely have to lower your price, but your agent can position your home as a great opportunity for investors, flippers, or people looking for a fixer-upper opportunity.

Read the whole article here

So again, you will end up receiving less for your home than you would if you had made all of the repairs. What it really comes down to is how many or how much repair does your home need?

Do Buyers Really Want A Fixer Upper?

Potential homebuyers may say they want a fixer upper, but in reality they may only be looking for something that just needs paint, and not a complete kitchen remodel. This is backed up by an article from The Balance –

Some homebuyers say they want to buy fixer-upper homes but they’re generally looking for those that require only light cosmetic repairs. Buyers who gravitate toward fixer-uppers are those who either don’t qualify to buy a more expensive home or they want to make a profit by fixing up the home themselves.

Most “fixer” buyers are willing to do simple repairs such as paint the walls, put in new carpeting, or replace light fixtures. They don’t want to rebuild a foundation or move walls.

Read the whole article here

What If Your Home Needs Major Repairs?

This is something that some sellers run into, the house needs a new roof or a new heating and air condition unit or worse, foundation repairs. What is a seller to do in these cases? Well your only option, if you can’t afford to make the repairs) is to contact an IBuyer or a reputable we buy houses company.

An IBuyer company may purchase your home in its present condition. They are becoming more and more popular these days, not only for properties that need repairs but also for people who don’t want the hassle of listing a home. The problem is that some IBuyers will not purchase the property if it is in need of serious work. In some cases they will buy it, but will actually discount their offer much more that what it would cost the seller to make the repairs on their own.

What This All Means

Yes you can sell your house in “as is” condition. The bottom line is that in the end you will get much less for your house than you would have if you made the repairs in the first place.

The important thing to remember is that just because you are selling as is does not mean that you don’t have to disclose problems with the property.

 

We have not received any compensation for writing this post. We have no material connection to the brands, products, or services that we have mentioned.

Selling Your Home Yourself

We thought we would put up a post about something that is really on the rise lately. That is selling your house yourself – or selling your house by owner. This is also sometimes referred to as FSBO (pronounced Fizbo) which is “For Sale By Owner”. With all of the sites and information on the internet, selling a property yourself is a whole lot easier.

Why Sell Your House By Owner

The biggest and most obvious reason to sell your home yourself is the amount of money you will save. Depending on the price of your house and what state your property is located in, you can save yourself thousands of dollars. However, by saving this money means that you will have to do some things yourself that a realtor would normally do for you.

Here is more on how much you can save by going the FSBO way:

These agents provide a service and need to put food on the table, so compensation in the form of commissions are involved. In residential real estate, commissions for the transaction are usually 3% to the listing agent and 3% to the buying agent. If listing agents can find a buyer without a buying agents help, they get both commissions (a conflict of interest you should try to avoid, as a side note). Real estate commissions are negotiable and can vary, but rarely do. The real estate company to which the agent attaches their name usually takes a small cut of the commission as well.

It’s been this way for a LOOONG time.

But times have changed. And the need for such agents (particularly listing agents) is less now than ever before, with the rise of internet and all of the data it provides. Sites like Craigslist, Zillow, and Trulia have made buying or selling “for sale by owner” (FSBO) much easier. Information is no longer a barrier to being able to buy or sell by owner.

Continue reading “Save 6% of your Home Price when Selling For Sale by Owner

6 percent! That’s not peanuts. On a 100k – that’s 6 thousand dollars you get to keep in your pocket. That number is only valid though if your buyer doesn’t use an agent. Still, that’s an additional 3 thousand you can keep in your pocket per 100k.

How To Get Your House To Sell Quickly

If you do much research though you will find that there are many fear mongers out there that will tell you that all kinds of things can go wrong by selling  a property yourself. The biggest thing you need to keep in mind if you want to sell your house fast is to price it right. Here is a snippet from a great article:

Pull Comparable Listings and Sales

  • Look at every similar home that was or is listed in the same neighborhood over the past three months. Appraisers do not use comps older than 3 months.
  • The list should contain homes within a 1/4 mile to a 1/2 mile and no further, unless there are only a handful of comps in the general vicinity or the property is rural.
  • Pay attention to neighborhood dividing lines and physical barriers such as major streets, freeways or railroads, and do not compare inventory from the “other side of the tracks.” Where I live in the Land Park neighborhood of Sacramento, for example, identical homes across the street from each other can vary by $100,000. Perceptions and desirability have value.
  • Compare similar square footage, within a 10% variance of up or down from the subject property, if possible.
  • Similar ages. One neighborhood might consist of homes built in the 1950s next door to another ring of construction from the 1980s. Values between the two will differ. Compare apples to apples.
  • Honestly assess desirability. If you are fortunate enough to own a dream home that will cause buyers to faint upon entering, you might get away with tacking on a premium.

Read all of “How to Price Your Home for Sale

That’s just a small snippet from that article. If you are serious about selling your property on your own, we suggest that you read the entire thing.

You can sell your house on your own without using an agent. It will take some work and probably the biggest thing is to make sure you price it right. Get it right and you will have a buyer for your property in no time.

Recommended Reading;
We have not received any compensation for writing this post. We have no material connection to the brands, products, or services that we have mentioned.

Is Real Estate Right For You?

So we have a new President this year. He is the oldest and the wealthiest to ever be elected. So how did he make his money? Real Estate.

There have been more millionaires created through Real Estate investing than any other occupation. There are constant late night info commercials about real estate investing. So how do YOU get started in real estate investing? That’s what we will cover here.Getting Started In Real Estate Investing

Different Methods Of Real Estate Investing

Getting started may not be as hard as you think. There is so much FREE information across the web to learn how to get started. We found this great video from one of our favorite places on the web Bigger Pockets that gives a 10,000 foot overview of real estate investing:

He gives a good broad break down of the different types of investing. With the investors that we have spoken with, most of them recommend starting with fix and flips over long term rental investments, depending on your financial situation. If you already have a lot of cash saved up, then purchasing rental properties is possible for you. However, if you need to build your cash reserves, then “fix and flip” is the route for you.

You have probably seen all of the TV shows for fix and flips. Basically they are buying a discounted property that needs repairs, complete the repairs, then sell the property for retail to the general public. The key here is that the property is discounted. You can not pay retail for a property, do repairs, market it for sale and expect to make a profit. This is where most real estate investors fail! It can be said that you actually make your money in real estate when you buy a property.

Finding Good Investment Properties

Finding these properties that make good candidates can sometimes be difficult. It will take a lot of marketing, or having a good real estate agent that understands you are an investor to search the MLS to find these good discounted properties.

If you choose the marketing method to find your own deals, there are a few ways to go about this. First, and probably the most used method is through mailings. Some investors use post cards, others use letters. The thing here is that it’s really a numbers game. You may only get 1 real deal out of every 1000 mailers you send out.

You also don’t just want to send out letters or post cards blindly to anybody and everybody. You need a list. These lists can sometimes be purchased depending on who you want to target. Good candidates for mailers include people who are getting divorced, have inherited a property, are out of state owners who are more than likely landlords, or even people who have been in their property for a long period of time.

As you can see, this can be very time consuming, and costly. But there is another method that real estate investors use to find good discounted properties for their fix and flips, and that is by using “wholesalers”. What is a wholesaler? Mark Ferguson explains it very well:

Wholesaling is a simple concept based on buying and selling houses quickly. A wholesaler will either buy houses or get them under contract well below market value and then sell the houses to another investor. Usually the end buyer has cash to buy the properties, because there is not time to get a loan. The key to being a successful wholesaler is finding great deals and having great buyers. The most successful wholesalers tend to use direct marketing to find sellers and have a huge list of cash buyers who are looking for great deals.

Continue Reading The Full Article

Making use of a wholesaler can be a huge time saver, as well as get you into flipping houses a whole lot faster. But how do you find these wholesalers? There are two easy methods.

First, your local REIA (Real Estate Investor Association) which you should already be a part of. Besides finding wholesalers you can also learn a lot about investing at these events. They usually have a small fee for attending anywhere from $10 to $50 which is well worth the information and connections you will make.

Secondly, the web. Many of these wholesaler have websites where they offer off market properties to other investors. They usually have some sort of sign up form to be notified of new inventory as well as a list of currently available properties.

Conclusion

Getting started in investing in real estate really isn’t that hard once you choose which route you want to take and then have the ability to find good discounted properties. Interest in learning more? Then checkout below –

Recommended Reading

Simple Ways to Invest in Real Estate

How To Find The Best Investment Properties For Sale

 

We have not received any compensation for writing this post. We have no material connection to the brands, products, or services that we have mentioned.