When it comes to selling your home, you've probably thought about doing some repairs/ improvements before listing. These measures do much to improve your chances of a good sale, but not everyone has the money (or time) for home improvement. That said, some homeowners sell their property in its current state, or "as-is.". So how do you sell your home as-is? That's what we're tackling in today's post.
When it comes to selling your home as-is, it is important that you price accordingly. Improvements are made to increase list price: since you won't be making any, you should set a sale price that fits the value of your home. A recent post from Tomlinson and Pointsothebys Realty discuss the importance of listing the sale price accordingly:
List the Sale Price Accordingly
If you are needing to get out of a home, whether it be because you are moving for a new job, or moving to a newly purchased home, or whatever the case may be, it’s always a good idea to put some improvements into the house so you can get the highest sale value for it.
If the house is in need of dire repairs, that should be taken off the home’s price. Say, for instance, a comparable house (based on square footage, bedroom and bathroom count, etc.) is listed for $200,000 in your neighbourhood, but your house needs $25,000 in roof repairs, you should be listing it at $175,000 accordingly. The onus is on the buyer to make the repairs, but there shouldn’t be any surprises nor deception on what the true value and cost of the home is. Via tomlinsonsandpointsothebysrealty.com
Since you’re selling your home as-is, the asking price should be reduced. It goes without saying that this will earn you a little less money, but it also helps the house sell faster.
Selling your home without making any repairs is possible, but disclosures are still required. It's important to disclose all information on the home, from cracked chimneys to malfunctioning appliances. A recent article from Home Sense Properties expounds on this:
Material defects have to be disclosed
All sellers, even if they plan to sell their home “As is,” are required to disclose known defects about the property and to provide information on any issues that a buyer may ask about, such as termite damage, a wet basement, non-working appliances, plumbing leaks, etc. Any defects discovered after the sale are the responsibility of the buyer unless the seller had previous knowledge. The most common exceptions to disclosure law are usually the sale of the decedent’s estate or a tax, foreclosure, sheriff’s sale, or a property in which the owner has not resided in the last 3 years
Of course, disclosures are a part of many home sales. When selling your home as-is, expect to have a longer list than usual.
Disclosure is a requirement!
Lastly, be realistic throughout the whole process. Selling an as-is house will attract buyers without a big budget. While this is natural, it can lead to low-balling:
Be realistic but stand your ground
When selling a home in as-is condition you must remain realistic throughout the process. One thing you need to be realistic about is the chance you’ll receive low ball offers on your home is pretty strong. Many investors who purchase homes that are in as-is condition will write several purchase offers at once that all could be considered low ball offers.
Another thing you need to be realistic about is the chance that even though you’re selling your home in as-is condition, a buyer still may opt to complete various inspections. There are tons of reasons why having a home inspection is a good idea and many investors will choose to do so, even if a home is being advertised as being sold as-is. Remember, a buyer who chooses to have various inspections, in most cases, will be responsible for the cost.
Now that you’re being realistic with the idea a buyer will want to perform various inspections, it’s important to understand that some buyers will still attempt to request repairs or adjustments in the price after inspections. This can be extremely frustrating for any homeowner who is selling their home in as-is condition. Read more at rochesterrealestateblog.com
When selling as-is, it's expected that you’ll receive a few lowball offers for your home. In these cases, it's a good idea to set limits on how low you're willing to go, or you could easily end up missing out.