Selling A House As Is: Everything You Need To Know
If you’re thinking about selling your home, you might not put it on the market just yet if the house is in need of repairs or renovations. Another option to consider, though, is selling your house as is rather than spending valuable time coming up with a checklist of all the work that needs to be done on it. Depending on the market and buyer demand, selling as is could be a smart move, but it’s important to be upfront with potential buyers about the current state of your home.
Let’s take a closer look at what selling a house as is truly means as we explore the pros and cons of selling a house as is and unpack the basics of how to sell a home this way.
What Does Selling A House As Is Mean?
Selling a house as is means you’re attempting to sell a property in its current condition. Some home sellers go this route for a number of reasons – one of which may be a desire to avoid making any costly repairs or renovations.
It’s important to understand the difference between a home that’s being sold as is and a home being sold as a fixer-upper or move-in ready. A fixer-upper is a property that clearly needs repairs, while “as is” may refer to a home that only potentially needs repairs. Even if a house doesn’t necessarily need repairs, however, it might not be considered move-in ready compared to other homes on the current real estate market. A home that is up to date with fixtures and appliances and doesn’t need repairs is generally considered move-in ready.
Should You Sell Your Home As Is?
A few considerations to be mindful of before selling your house as is include:
- The real estate market: Is it a buyer’s market or a seller’s market? A seller’s market could attract many potential buyers, but a buyer’s market could leave you with relatively few offers.
- Real estate comps: Where are the real estate comps surrounding you? It’s a good idea to know what nearby homes of similar size and in similar condition are being listed at.
- Repairs and renovations: Does your house need any major repairs or renovations that could affect your home appraisal? A buyer might negotiate the asking price if they see too many repairs that need to be made once the appraisal and home inspection are complete.
- Relocation status: Are you moving because of a job relocation? You might need to move out of your current home quickly and not have time to make any improvements before selling.
By weighing all these factors, you’ll have a better sense of whether it’s worth it to sell your home as is.
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Pros And Cons Of Selling A House As Is
Let’s take a look at the benefits and disadvantages of selling a house as is.
Selling Home As Is Pros
The pros of selling a house as is include:
- Time savings: Making repairs and renovations takes time. By listing your home as is, you’ll potentially save a significant amount of time and get your home to sell at a faster rate.
- Money savings: Not only do repairs and renovations take time, but they can also be pretty expensive depending on the severity. Selling a house as is can save you a decent amount of money you’d otherwise spend.
Selling Home As Is Cons
Drawbacks of selling a house as is include:
- A lower price point: Although you have some flexibility with the asking price, you may find yourself with a substantially reduced sale price so a buyer will move forward with a purchase.
- Fewer offers: Many buyers are looking for a turnkey home that’s move-in ready. If your home needs major repairs or renovations, you might not see many offers.
- Inspection issues: A home inspection can become an issue if a problem arises and the new buyer will have to fix it. They may start to negotiate with you on the asking price or demand you correct the problem.
How To Sell A House As Is In 5 Steps
If you’re thinking that selling your home as is may be a good financial decision, here are some important tips on how to sell your house in this manner.
1. Find A Real Estate Agent
We recommend always using the help of a real estate agent when selling or buying a home. An agent’s knowledge about the industry can make for a smooth real estate transaction. They’ll help you decide on your listing price, market your home and handle any negotiations or potential bidding wars. They can also help you understand local disclosure laws and determine any critical repairs that can’t be avoided.
2. Provide Disclosures
It’s important to be upfront with any potential buyers about your current home’s condition and any ongoing issues. Even if a house is listed as is, a potential buyer may not know the extent of the improvements they’ll have to make after purchasing, unless you tell them.
It’s a wise idea to look into your local and state laws on specific disclosure requirements.
3. Anticipate A Home Inspection
When a buyer sees a home listed as is, their real estate agent might encourage them to get a home inspection on the property. This will allow the buyer to see and know firsthand any issues with the house and how much fixing those issues could cost. Be prepared for negotiations if the home inspection doesn’t yield good news.
4. Market Your Home
A real estate agent can help you market your home to many potential buyers. Agents have access to the multiple listing service (MLS), can assist with staging and likely possess a wealth of marketing strategies on how to get a home to sell.
Although marketing your home is a typical step in the home selling process, this step can be especially crucial when you’re selling your home as is. Depending on the house’s condition, your real estate agent may have to give the house some extra attention to draw in potential buyers. Or, your agent may tailor the marketing to buyers looking for “as is” properties.
5. Set A Realistic Price
Selling a house as is means having to set a realistic price. You don’t want to ask for too much, especially if repairs or renovations are necessary. By putting your house on the market at a realistic price point, you’ll hopefully have many offers to consider.
Selling A House As Is FAQs
Below are a few frequently asked questions about selling a house as is.
How much could I lose selling a house as is?
It all depends on your property’s condition when you’re looking to sell. Typically, you can expect to sell an as is house at 15% – 20% below market value. However, if selling as is means you can avoid paying for expensive repairs, this loss might be lower than what it seems at first glance.
It’s important to note that you might not lose any money selling your house as is, however. If it’s a seller’s market, you could get multiple offers even if repairs or renovations are in order.
Is it a good idea to sell my home as is?
If it’s a seller’s market and you think your home is in okay condition to sell, listing your home as is may not be a bad idea. If you also don’t want to do the leg work associated with repairs or renovations, selling your home as is can be a way to avoid this extra hassle.
Should I buy a home being sold as is?
If you’re looking to buy a home and see a house listed as is, don’t be afraid to explore it as an option. Some properties listed as is are in good condition, just not necessarily move-in ready.
The Bottom Line: Selling A House As Is Can Be A Smart Move In The Right Market
Depending on the real estate market and some other factors, selling your home as is could be the right financial decision. However, being willing to make some changes to a house to appease a potential buyer can also be worth it in certain situations.
Does selling your home as is or otherwise seem like the right move for you at this time? Let our friends over at Rocket Homes℠ take the lead. They can help get you started and connect you with a Verified Partner Agent.