How To Sell A House As Is
There are many reasons why you’d want to know how to sell a house as is. Mainly, you don’t have to put in extra time and putting for repairs and can sell your home quickly. However, it’s often trickier to sell as is because most buyers aren’t willing to put major repairs into a home. At most, the typical person will be willing to put in new carpets, a fresh coat of paint, and maybe a new shelf or cabinet or two In this article, we’re going to tell you not only how to sell your house as it is, but when the best time to sell it is and how to go about selling it in general.
Sell A House As Is: Make Sure Everything is Up to Code
You cannot sell your house if it has major safety, structural or safety problems. If it’s old and has asbestos in the ceiling, there’s nothing that can be done. You have to fix it. Most mortgage lenders will agree. If you choose not to repair such issues, though, you have to disclose everything wrong with the house to avoid a potential lawsuit. Even then, the only buyers interested may choose to pay cash or only be willing to pay a bargain price. Hopefully, your house doesn’t have major safety or health issues with it and you can continue onto the next step. If not, you’ll need to first address this before you can proceed.
Watch for a Seller’s Market
A seller’s market, in the real estate world, is known as a “hot real estate market.” This means that there are more buyers than houses available buy. Because there’s more demand than supply, serious buyers are more likely to pay for the list price. And if the economy is doing super well and the market is very hot, you might even be able to request buyers waive inspections and appraisals. However, it’s always good to let buyers have a home inspection. Signs of a seller’s market include:
- Vanishing real-estate ads
- Low inventory compared to previous months or years
- Increased median sale prices
Know the Competition
If there are other houses on the market labeled “as is” and compare to the qualities of yours, take the time to see what they look like. Notice their conditions and amenities. Do you have more closet space and bedrooms? Are the kitchens and bathrooms smaller than yours? If your house doesn’t beat the competition, be prepared to price it lower. Should you hire an appraiser, tell them directly that you plan on selling the property as is so they can set the price correctly.
List the House “As Is”
When writing the description of your house for various real estate websites, be sure to put “as is” in the listing. That way, potential buyers know that what they see is what they get. List any major repairs that would have to be done after the purchase. In addition to online or magazine listings, talk your agent about trying to pitch the house as a charming fixer-upper or investment opportunity. As is homes have a special market that should be taken advantage of if marketed the right way.
Disclose What Needs to be Disclosed
Sure, the buyer knows that “what they see is what they get,” but full disclosures are required by state law. The buyer must get a report from a home inspector outlining any non-visible problems. When writing up a sales contract, put “as is” clearly at the beginning of the sales agreement. Make the buyer initial by those words so they can’t say they didn’t know what they were buying once the deal is done.
Make the House as Clean as Possible
If your house already has an “as is” listing, people are going to look for any other reason to give you a lower offer than you’re already asking for. Messy or dirty houses keep people away and make it seem like you’re not doing your best to sell your property. Take a day or two to make the house as presentable as possible. Mow the lawn, vacuum the rooms and put dishes or toys away. Then, when interested buyers want to take a tour, you can schedule them quickly before they change their minds – and keep them interested as they’re looking around the property.
Figure Out How to Handle Bargainers and Flippers
Perhaps you’re selling your home as is because of financial distress or other serious issues. Some companies will take advantage of that and try to swoop in with lightning fast speed. These people are called a lot of things, but mostly “Opportunity Investors.” They’ll offer cold, hard cash and typically buy your home within 30 days with no inspections. Opportunity investors try to buy from:
- Sellers who are in bankruptcy
- Sellers who are divorcing
- Sellers whose homes are being foreclosed
The list goes on. If this is you, don’t let yourself be taken advantage of by opportunistic companies who will try to get the lowest possible deal from you. On average, opportunity investors offer only 65 percent of the home’s market value. Do your homework and see if opportunity investors or other bargainers are really who you want to sell to. On the one hand, you won’t be getting as much money as you can for your home. On the other, you won’t have to worry if your buyer is approved for a loan and you most likely won’t have to pay for repairs before closing. Know how low you’re comfortable going when approached by a lowballing buyer before someone actually asks.
Accept the Offer
While waiting for the “best deal” is nice, you’re going to have to choose the right buyer for your home at some point. Understand what the seller agreement laws are in your state. In New Jersey, for example, buyers and sellers have a 3-day attorney review periods, in which a buyer or seller can pull out of the agreement. Should you get a better offer, you can pull out and go with the second buyer. But at some point, the house will be sold and will be out of your hands. You’ll cash the check and, hopefully from this guide, get the best deal for selling your home as is.
We hope you’ve enjoyed our short guide on how to sell a house as is. Please comment and let us know what you think and if there’s anything else we can do to help. The Sell My House Houston Pros team is always here to help.