Should You Sell Your House As-Is?
Owners of older houses may find that their home is more than good enough for everyday living but isn’t up to the real estate market’s demanding standards. This is especially true for people who inherit older homes or end up over their heads with a property that needs a lot of repairs.
The home buying market standard is for the seller to make repairs as requested by the buyer before the sale is finalized. However, this can be an expensive and time-consuming process that some sellers don’t have the budget or the time for.
Sellers can bypass this expectation by listing their property for sale “as-is” with no requests for major repairs from the buyer. Although there are potential downsides to this practice, it works well for some sellers, especially if you’re open to the idea of selling the home for cash.
Lower Asking Price
If you want to sell your home as-is, the biggest thing to understand is that it is almost guaranteed to fetch lower offers on the traditional real estate market. Savvy buyers know repairs can add up fast and knowing that they’ll be on the hook for repairs themselves incentivizes them to look for the best deal possible. They may drive a hard bargain, especially if they know that market conditions are in their favor.
If the repairs are going to be costly and time-consuming, the lower price may be worth it. However, you must consider the amount of remaining mortgage on the property before accepting a low offer. If you purchased the home recently and are looking at major repairs, an as-is offer from a buyer may net you little to no cash.
You will need to be very particular about which offers you consider, especially if you need the money from the sale to fund your new home’s purchase. Sometimes, however, this may mean waiting months for an acceptable offer.
A professional cash home buyer can see the potential in your home and give you as much money as possible for it, even if it’s distressed and needs significant repairs. You can even have the home buyer help you sort out and pay off liens and overdue homeowners’ association fees.
Potential Loss of Interest
Selling your house as-is may make it more attractive to buyers on a tight budget. They may have the time and energy to put into repairs but don’t have a large budget to spend on a larger down payment or monthly mortgage.
However, some buyers might not see the potential in your house or just prefer to buy a turnkey property. You will almost certainly lose out on some of these would-be buyers by offering your home as-is. If your home is in a neighborhood that mostly attracts wealthy buyers, your home may end up overlooked by the vast majority of home seekers.
You may also struggle to attract buyers if the market is already flooded with homes for sale. Even if the homes on the market are radically different from yours, having that excess stock available may cause your house to go unnoticed. A similar dynamic can occur if there are fewer interested buyers in your area but an average number of homes available.
You can mitigate this loss in interest by talking to a cash home buyer who specializes in buying houses as-is. Cash buyers usually specialize in buying as-is properties to fix up and invest in. Instead of being scared off by the need for repairs, they see a property they return to its full potential with some expert help.
Close the Sale Faster
One of the single greatest benefits to selling as-is is the general increase in speed. Significant repairs can take weeks or even months if weather conditions get in the way of completing the work.
Even if your home looks fine on the surface, issues uncovered during inspections can cause your sale contract to unravel. Many traditional home purchase contracts contain contingency clauses designed to protect the buyer from hidden damage to the home. By selling the home on an as-is basis and avoiding these clauses, you can avoid demands for repairs from the buyer and close the sale faster.
Selling as-is also includes the possibility of selling to a professional home buyer who has the technical knowledge and time required to close the sale quickly. A home buyer with lots of experience can close a sale in as little as a week if all the paperwork is in order. Even if a sale requires troubleshooting titles and liens, a professional who specializes in distressed homes will be able to navigate those systems quickly, often closing within 30 days.
Leave the Repairs to the Experts
Although a traditional real estate agent can help set you up with contractors for repairs, finding a team that’s available to do the job quickly can be difficult. You may end up juggling multiple contractors’ schedules while also dealing with your full-time job and trying to move into your new home.
If you’re selling a home in need of repair, you’ll attract both savvy DIY enthusiasts and investors with experience dealing with distressed homes. Cash buyers can take the stress off your hands by either doing the repairs themselves or partnering with their team of contractors.
Most DIY enthusiasts still need a bank mortgage, which can slow down the sale process. Working with a dedicated full-time cash home buying business can make the sale go much faster.
Central Florida Home Buyers
Selling your house as-is can work significantly in your favor if you find the right buyer. Instead of waiting around for months for a buyer to show up, reach out to distressed home buying specialists Simple Sale in Central Florida who know the market and your property’s full potential.
Whether you’re moving in a hurry or are struggling to sell an older property, Simple Sale Central Florida has a reliable and professional team ready to assess your home and give you an offer within 24 hours. We work on your schedule and can complete a sale in as little as seven days if all of your paperwork is in order. Contact us today at (407) 338-4183, so we can get started.
This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Simple Sale encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.