What makes Christmas and New Year’s better than friends, family, and savings? How about owning a home? The holiday season is a cheerful time spent with family, but for those of us with families
How To Sell A Home In As Is Condition
What happens when a homeowner wants to sell their home in “as is” condition? Does it make a quick sale more difficult? Does it affect their ability to receive the asking price? In most cases, it does make achieving a fast sale tough, but it doesn’t have to make getting the asking price impossible. If you’re thinking about how to sell a home in “as is” condition, then we have some pointers just for you.
Why Sell “As Is”?
If you’ve been researching the home selling process, then you’ve no doubt seen dozens of articles about how to freshen up, upgrade, renovate, or otherwise improve your home to make selling easier. The problem with most of these strategies is that they require a financial investment, which the seller may not have up front.
Why do homeowners choose to sell their homes in “as is” condition? There are many reasons, but some of the most common include:
Lack of financial resources to make necessary repairs
Health complications limiting the seller’s ability to repair or renovate
The seller is going through a divorce
The seller doesn’t want to sink resources into making repairs before selling
There’s nothing wrong with opting to sell a house as it is. However, there are some special steps you should take to ensure garnering the best possible deal.
Step #1: Hire a Specialized Real Estate Agent
Selling a home “as is” is tricky. From disclosures to marketing, it can be a potential minefield ripe with problems just waiting to explode. The best step you can take as the seller is to hire a real estate professional who sells homes in “as is” condition.
Specialized real estate agents who work with “as is” homes often have access to a large pool of cash investors, people who purchase homes in poor condition with the goal to flip or resell them post renovations. This is a crucial resource to gain access to as many banks won’t finance a home in less than ideal condition for a potential buyer.
Agents who know the “as is” ropes are usually strong negotiators. They have a tenacity other agents lack, and they know exactly how to emphasize the selling points, from neighborhood appeal to investment opportunity.
Step #2: Always Disclose
Just because you’re selling a home without a recent upgrade or repair list doesn’t mean the home’s deficiencies should be hidden. One of the biggest mistakes sellers in this position make is questioning just what they don’t have to disclose.
You should disclose everything you know about your home with the sale. For example, if you are aware of structural issues, you shouldn’t try and hide them from prospective buyers. Such action can leave you open to a future lawsuit, especially if the buyer can prove you blatantly lied or failed to disclose known problems.
Step #3: Weigh the Pros and Cons
If you’re considering selling “as is,” it’s likely you’re trying to avoid costly repairs or upgrades. However, before making your decision, you should carefully weigh the pros and cons.
Minor, inexpensive repairs and upgrades can dramatically improve the interior and exterior appeal. Moderately expensive renovations could increase the property value while also increasing the appeal. In some cases, such renovations can make a quick, more lucrative sale possible.
However, repairs and upgrades cost money. You’ll have to decide whether or not you can front the expense. You’ll also need to determine if the changes you make will be noticed by potential buyers and seen as valuable.
Step #4: Price It Right
In order to move real estate, proper pricing is crucial. When selling a home in “as is” condition, price becomes even more important. Keep in mind that most homes sold in this manner are cash deals, the buyer pool will be smaller versus traditional sales, and most homes sold in “as is” condition are either bank foreclosures or short sales.
Understand the market and the potential buyers before pricing. This is where your real estate agent will become extremely valuable; they know the market and the buying pool, and they can ensure your price meets your needs while also grabbing buyer attention.
Step #5: Be Ready to Stand Your Ground
Finally, understand that selling a home in “as is” condition is a challenge in comparison to the traditional real estate transaction. You must be realistic. You will receive low ball offers, and many buyers will try to push the need for certain repairs to be made before closing.
Know what you are willing to do and not do, and be ready to stand your ground. No matter what a buyer requests or demands, you are in the driver’s seat. It is ultimately your decision to accept, deny, or counter an offer.
Having lived in other cities, such as Cleveland and Idaho Falls, I only appreciate Hampton Roads that much more. Why? Because from almost anywhere in our area, a beach is only about a 20 minute dri....