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”.
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 –
- 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.
- 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.
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.
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.