Buying your first home is one of the most exciting decisions you’ll make in your life! It comes with a lot of responsibility, but a lot of excitement too.Before you jump in and buy your first
Selling your House As-Is, What it Means for the Buyer
Dated: May 13 2022
If you want to sell your home without doing any repairs, you’re looking at an ‘as-is’ sale. While it may seem more convenient at the time, it’s important to know what it means for the buyer and what it does to your chances of selling the home.
What Does it Mean to Sell a Home As-Is?
Before you sell a home as-is, it helps to know what that means. No home is perfect, so not every home is an as-is sale. Common issues that make it an as-is sale include:
- Foundation cracks
- Mold in the home
- Leaky roof
- Termite damage
- Plumbing issues
- Electrical issues
- Title issues
If your home has any of these issues (or other major issues) and you don’t want to fix them, it’s an as-is deal. Here’s what it means for the buyer.
Buyers Want a Deal
Buyers won’t pay the true market value for a home sold as-is. Instead, they want a below market value knowing they will need to make repairs to fix up the home. Many buyers of as-is homes are investors who fix and flip homes, but not always.
Buyers May Have a Harder Time Securing Financing
If a buyer needs financing, they may have trouble getting approved. Most buyers of as-is properties are cash buyers, meaning they don’t have to worry about a lender or loan approval. Sometimes, though, if the issues aren’t ‘serious’ the home may pass an appraisal and traditional lending is still an option.
Buyers Want a Disclosure Report
You must disclose that you’re selling the home as-is in the listing, but that’s not all. They’ll want you to disclose everything that’s wrong with the home before they buy it. This helps them make a decision and protects you from the buyers backing out after signing the contract, especially if they have an inspection contingency on it.
Buyers Will Negotiate
If you want to arm yourself with the right information, have your home inspected before you put it on the market. This does two things:
- Tells you what is wrong with the home before you list it
- Gives you time to get quotes from contractors so you know the accurate price of repairs
When buyers negotiate, you’ll be more informed. You’ll know exactly how much potential repairs would cost so you know which offers are legit and which are lowballing you when you receive offers.
Should you Sell your Home As-Is?
Every seller is different. Think about your reasons for selling your home without repairing it. Are you in a hurry? Do you not have the funds? Do you just not want to be bothered?
I can help you decide if selling your home without repairing it is the right choice. We’ll discuss your options, find out how much your home may cost to improve, if the issues aren’t too extensive, and determine what you might lose if you skip the repairs and sell the home as it stands.
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