Are you thinking of selling your home, but worried about the condition? Concerned that there might be a few repairs needed that could scare off potential buyers? In this world of HGTV perfectly staged houses, will yours meet the bar or should you sell your house “as is”?
It’s a fair concern to have. Many people feel the need to go out of pocket to bring their house up to perfect condition before putting it up for sale. A ready-to-move-in house should make for an easier sell, or so the wisdom goes.
The truth is that sometimes selling “as is” makes the most sense. It might seem counter-intuitive, but there are many situations where repairs before a sale just don’t make sense.
Keep reading for 10 reasons to sell your home “as is”.
Home renovations are incredibly stressful to live through. There are many factors that contribute to this, and each can bring a heavy emotional toll.
If you choose to make repairs to your house, your first decision is whether to live in the home while you do so. If you do, you suffer the inconvenience of trying to navigate your day-to-day life around a construction site. Dust and debris will be everywhere, and it can be hard to find a place to relax.
If you don’t want to live on-site, you need to find somewhere else to stay. You could spend the money on a hotel or risk the goodwill of family or friends by moving in with them for a short while. But how ideal is that, really?
Meaningful repairs don’t come cheap. If your home needs major renovations, you need to find a way to pay for them.
If you need to sell due to financial duress, this is a clear pro for selling your house “as is”. But even if you have the flexibility to make the choice, paying for the repairs doesn’t always make sense.
The biggest concern is in getting a return on your investment. Is there better value in replacing the roof, or knocking some money off the asking price?
The idea most people have is to get as much as possible in the sale of a house. However, asking a lower price in recognition of the repairs needed may actually give you a larger profit margin.
Another challenge in taking on the repairs is the risk that there’s more damage than what’s known. You may think that you’re just replacing a bathroom sink only to find extensive water-damage.
While it’s essential that you disclose all your knowledge of the home’s condition, you can’t reveal what you don’t know. That’s not to say that you’re off-loading a money pit to the buyers. Instead, you’re letting them take on the risk in exchange for a lower sale price.
If you’re looking to close the sale quickly, you can’t beat selling your house “as is”. Undergoing renovations requires time and patience. Any unforeseen repairs will push things back even further.
If you sell “as is”, your home can go on the market almost immediately. You can also sell to a cash buyer, which makes for an especially quick sale.
Inheriting a property is a mixed blessing. Obviously, there’s the loss of a loved one that usually takes an emotional toll. Secondly, you’re now responsible for a home that may or may not be in good condition, and is filled with someone else’s belongings.
If you’ve inherited the home as part of an estate, things get even trickier. This can be a recipe for disaster as everyone fights for what they believe is their fair share. It happens time and time again – and sadly nobody believes it will happen within their family.
The decision to sell the house “as is” can mean quick cash in all the heirs’ hands and hopefully less squabbling. All members of the estate can then share in the profits.
The one thing a realtor offers is guidance. For those looking to navigate the home selling process, it can be reassuring to have an expert at their side.
However, this reassurance doesn’t come cheap. Selling “as is” makes the process much simpler, saving you from the need of a real estate agent.
This also helps keep more money from the sale in your pocket.
It was mentioned earlier, but it’s worth repeating: disclose everything you know about the condition of the house.
Buyers that are willing to take on an “as is” property are already prepared to get the necessary work done. Don’t feel like you’re scaring anyone off.
Instead, you free yourself from the liability of a buyer who thinks you sold them a damaged home. Get peace of mind from the risk of an irate buyer.
One of the biggest frustrations of selling a home is getting a lot of walkthroughs without any serious interest. You could be inconveniencing yourself to make the house available to a curious neighbor who just wants to poke around.
You might have a smaller pool of potential buyers selling as is. But the ones interested will be much more serious about it.
In a buyers market, offering a property at a lower cost than the other homes will draw attention. It can be attractive despite its condition as an easy way into the neighborhood.
Life is expensive. Sometimes owning a home isn’t worth the financial obligations.
Free yourself from home ownership and make your home’s value work for you. You can use it to travel, move into a rental, or anything else you want.
Selling your house “as is” works for a number of reasons. It is a great way to limit your expenses and stress while maximizing your profits.
For more articles on selling your home, visit our blog.
Lisa is a local real estate investor in Austin Texas.