Sometimes homeowners want to sell their home and move on as quickly as possible. If you’d like to sell fast, selling your house as-is could be the ideal solution. Even if your home has a leaky roof or needs some renovations, you can still sell it as-is.
Whether selling your house as-is is a good idea or not depends on a variety of factors. Here’s some more information about how the as-is sales process works, the pros and cons.
What Does Selling Your House As-Is Mean?
When you put your home on the market as-is, you’re offering it for sale without making any repairs or improvements. Put simply, you’re saying to potential buyers, “what you see is what you get.” With this in mind, when you list your home as-is, you also price it to reflect the condition that it’s in and the repairs that it may need.
However, selling your home as-is doesn’t mean ‘buyer beware.’ As the homeowner, you’re required to disclose any known material defects of your home. This is true even when listing your home as-is.
Some states, such as Florida, require homeowners to complete a “seller’s disclosure.” A seller’s disclosure is a document that must be completed by the seller of the home, that lists any known issues the property has. The seller’s disclosure is typically shown to buyers before making an offer on a home, or within a few days of making an offer. This helps to ensure that both parties enter the sales contract in good faith.
Should You Sell Your Home As-Is?
If you have to sell your home quickly and don’t have the time or funds to make repairs to your home, selling it as-is could be a good solution. However, if you’re looking to get the highest sales price, selling as-is may not be the best way to do it. Here are some pros and cons of selling your house as-is.
Advantages of Selling a House As-Is
- Faster Sale: Preparing your home for the market can add a substantial amount of time to your sales process — especially if you need to make significant repairs. By selling your house as-is, you won’t have to wait for repairs to be completed before you list your home. Plus, if you price your home competitively, you’ll likely attract more cash buyers who can close faster.
- Save money: Repairing and renovating a home can cost thousands of dollars. This is especially true if it needs any significant components replacing, such as a roof or the HVAC. Selling your home as-is means you won’t have to spend any funds fixing your home up.
Challenges of Selling a House As Is
- Smaller Buyer Pool: Move-in ready homes tend to be favored by buyers. Although a lower list price is likely to attract investors, buyers looking for a house to live in might see an as-is home as too much trouble. Also, some lenders are apprehensive about approving buyers for a mortgage on a home that needs a lot of work. This might reduce your potential buyer pool.
- Lower Sales Price: When selling your home as-is, it’s crucial to be realistic with your sales price. Potential buyers will expect to pay a sales price that reflects the cost of any needed repairs. According to a study by renovation site Porch.com, on average, buyers who purchased move-in ready homes paid $250,000 compared to $200,000 paid for as-is homes.
Depending on your personal situation, selling your home as-is could make sense — especially if your home is a fixer-upper. Ultimately, the decision to sell your house as-is depends on a number of different factors. Be sure to weigh up the pros and cons of both options before listing your home.