Answering Most-Asked Question; How To Sell My House As Is?
When you were planning to sell your house, your peer or some close friend might have given you an idea of selling the house as is. Now, you must be wondering how to sell my house as is? Discover this and a lot more about selling a house as is in this blog.
There is a lot of noise about selling a house 'as is.' Someone might tell you that it is a no-go area, and others might see it as a diamond in the rough. Because, of course, it is the easiest way to sell your house. But, let me tell you, nothing is 100% true about selling a house as is. You cannot make a confident decision to sell a house as is or not until you know the pros and cons of selling as is. Let's answer your question of 'How to sell my house as is?'
What Does It Mean To Sell My House As Is?
The property with the listings of 'as is' is for sale in its current state. The seller will not be responsible for any repair or problems in the house.
Generally, when a prospective buyer is searching out for a house to purchase, he finds any problem in the house, like broken windows, roof leakages, or any other repairable thing. He will ask the seller to fix the problem before closing the deal. Therefore, the seller is liable for any repair that is due at the time of sale.
However, in selling as is, the seller won't be responsible for entertaining any demand like this. The option is open for the buyers. They can look for some other house, or repair the house by themselves.
What Are The Misconceptions About Selling A House As Is?
As earlier discussed, there is a lot of noise about selling a house as is. Let's find out some of the misconceptions that arise when asking 'how to sell my house as is?' The number one misconception about selling your house as-is is the seller is free from any responsibility. Many people think selling as is means to list your property for sale and get whatever the price is asked for. But, it is not reality.
Although different states have different laws about disclosure. Every state's law binds the home sellers to honestly answer all the questions about the house. The term referred to 'Caveat Tempor' is often used in real estate dealing. It means 'let the buyer beware.'
So you have a choice to disclose any information and keep others. But, if a buyer asks anything, you are bound to tell the truth, no matter how harsh. Law also binds the real estate agents to disclose any information that might affect the buyer's decision to purchase the house.
Pros Of Selling A House As Is
Here are some of the pros of selling a house as is.
Save Time
Many sellers find it attractive to sell a house as-is instead of waiting for an eternity to get house repairs before it is listed for sale. You can just put your house on sale as is without spending a lot of time getting everything repaired. On the other side of equations, it has been observed that most buyers of as-is listed homes pay in cash. This also makes the home selling process fast and hassle-free. You don't have to go through the long process of mortgages and all that.
Save Money
Why would I sell a house as is? My answer would be 'if I have not to spent a single buck before listing it.' Similarly, many sellers find it attractive to sell their house as is without spending money on extra repairs and damages. Just imagine repairing costs of 100$ per square foot, and what would it cost to repair a lounge of 300 square feet? No, you would never take a risk to repair your house with debt money.
Financial Distress
One major reason people opt to sell a house as is financial distress. One might have faced a job loss, or economic downturn, or loss in business. Selling a house as is the best quick option for such time. Without any time-consuming process and extra spendings to get your house repaired, you can get a money supply by selling the house as is.
Cons Of Selling A House As Is
There are many cons and downsides to selling a house as is. Few are listed here.
Low Price
You cannot ignore the fact that you put a big clearance sale sign on your property by listing it for sale as is. And you should be prepared to earn lower profits. Expecting to get a diamond from a coal mine without any effort is not a wise approach. Typically you can expect to receive a lower price than the market. For example, a property that might sell at $200000 will be receiving $180000 or might be less. But, imagine the thousands of dollars required to repair a home. The deal is worth it.
Fewer Buyers
A lower than market price tag will attract many buyers. But, you should not be surprised to know that only a few will remain there after knowing the repairs and damages costs. In fact, many buyers wouldn't be able to get their mortgage approved for such a house. And as a matter of fact, you should expect that most state agents would be left to buy your house as-is.
How To Sell My House As Is?
Now, you know all the pros, cons, and real picture about selling a house as is. We are heading to the answer of 'how to sell my house as is?'
Selling a house as is has almost a similar procedure as a standard home sale. But, the difficulty is that you are offering someone mashed potatoes. And you have to convince him that the mashed potatoes are better than steaks. Here are a few tips you should follow to sell your house as is.
Take The Advice Of A Real Estate Agent
Getting an insider on board increases your chances of winning the deal. It means an estate agent is well aware of the market prices of similar houses, and he will help you set the fair price of your house. Additionally, he can help you connect with potential buyers who are already interested in buying an 'as-is' house.
House Inspection
A small cost of $200 to $300 will save you from heavy losses in the future for not disclosing your home's serious defects. Make sure to run a house inspection to identify all the damages and defects that would need repair.
Disclose Defects
Make sure to disclose all defects to potential buyers. We have already discussed the legal requirement of disclosing any information that would impact the buyer's decision.
Get Cost Estimates For Repairs And Set A Realistic Price
After your home inspection, get the cost estimates of the repairs. Some repairs might be under your budget, and you can get a better price after fixing such damages. Additionally, set a fair and realistic price for the home. You should not be just highlighting the defects so much that the buyer starts feeling like he is paying for defects. You should positively highlight your home's positive features, like location, size, space, etc. By doing so, you will be able to negotiate more confidently.