Does your home have a leaky roof? Are the bathrooms outdated? Is it time to replace the AC system? If your home has issues, and you’re getting ready to sell, you may be dreading the repairs you have to make before putting it on the market. But what if you were to sell it "as is"? Meaning – what if you decide to simply put your home up for sale in its current condition, problems and all? If this sounds intriguing, read on to find out what to expect.
Understand the trade-offs
Maybe you don’t have the time or money to put into a long and costly renovation. It’s understandable. But you do need to know what the trade offs will be. If you would need to put several thousand dollars – or more – into fixing the roof or renovating a bathroom, you should expect to knock the equivalent off the price of the home.
In addition, some lenders require that homes meet minimum requirements of property condition. If your home does not meet them, then anyone needing a mortgage will not be a prospective buyer. You’ll be limiting the pool of buyers to only those who can pay cash.
Make the required disclosures
When selling a home "as is", you need to be upfront about all the known problems with your home. In Texas, you are legally required to make certain disclosures, which can be found in the Texas Association of Realtor's Seller's Disclosure Notice. You will want to make sure to complete this document completely or you could face future liability.
Know how to handle low offers or requests for repairs
Since an "as is" property is most likely going to appeal to investors looking to renovate and flip or rent the home, be prepared to get some lowball offers. Remember – investors will want to make a profit from their efforts. Don’t take it personally. Know what your lowest price is and be prepared to negotiate.
Also, if a house inspection uncovers issues that were not initially disclosed, a buyer may make requests for repairs or compensation. If you do not agree to them, they may be allowed to walk away from the transaction. You’ll then be required to disclose those additional issues discovered during the inspection to any new buyers that make an offer.
Keep the house clean
While you may not want to pour money into professionally staging your "as is" home, you should at the very least keep it clean and neat. This includes maintaining the yard and keeping the home ready for viewings. It will make a better overall impression and increase your chances of getting an offer you feel comfortable accepting.
While selling an "as is" home is not a piece of cake, it isn’t an insurmountable challenge. By knowing what to expect before you begin the process, you can sell your home for a price that both you and the buyer can be happy about.
If you have more questions about selling your home "as is" or getting advice on what repairs you should or shouldn't make to get your home ready to list, let us know. One of our agents would be happy to walk the property with you and make recommendations. Fill out the form below to get matched with an agent.