Buying a house is an exciting time. A new stage in your life starts and is the beginning of the process of settling down. However, this step won’t be smooth if you are buying an old, dilapidated house for sale in need of major repairs or renovations. It is not easy to get rid of this responsibility as well as not gain any money for all the work done on it. If you have decided to hire a real estate agent in order to sell your home, then you must understand what is behind this decision.
The boom in People Buying Fixer-Upper Houses
Over the last few years, there has been a boom in people buying fixer-upper houses that they want to improve on and sell at a profit. In addition to buying these properties and fixing them up, many people also decide to list the house for sale without undergoing a renovation process (aka ‘selling your house as-is’). This can be a good idea if you plan on moving out of the area or are just too busy with work and family to make any improvements.
A lot of people think that selling an as-is home means that the property is in bad shape, but it actually just means that the seller will not make any repairs or improvements prior to closing. There are pros and cons to selling your house as-is.
Here are some things to consider before you decide what’s best for you.
What “As-Is” Means:
When you sell your house as-is, it means that everything is being left as it currently stands — dings and all. This isn’t an excuse to leave trash in the backyard or a broken window unfixed. As-is simply means that you won’t put any money into the house before closing. You should still clean, declutter and fix things like broken windows or holes in the walls.
Pros of Selling Your House As-Is:
The most obvious benefit of selling your house as-is is that you don’t need to spend any money on repairs or upgrades before listing it for sale. If you’ve lived in the home for years, it may not be up to par with other homes on the market, but that doesn’t mean you can’t get a good price for it. A well-priced home will sell regardless of whether it’s freshly painted.
Cons of Selling Your House As-Is
Your home will likely stay on the market longer than it would otherwise. When you’re selling as-is, buyers will be expecting to do some work on the home once they move in. Because of that, they’ll be looking for lower prices on these homes than those that are move-in ready. If you need to sell your home quickly because of a job change or you have another reason why you need to move right away, selling your house as-is may not be the best option for you.
When Might You Want to Sell As-Is?
There are a number of situations where selling as-is could be a good choice. If you have an older house and would prefer to avoid making any updates or changes, as-is could allow you to sell your house faster than it otherwise would sit on the market. If you are looking for a quick sale, selling as-is could be a good option. As we mentioned, selling as-is means exactly what it sounds like—you’re selling your home exactly as it is, with no repairs or renovations. While this may seem risky, it can actually present a great opportunity for buyers looking for a fixer-upper or those who have experience renovating homes and know the work they need to get done.
More than Just a Low Price Tag
Selling as-is does not mean selling for cheap; it just means you’re willing to accept offers without making any changes to your property first. Of course, if you’re selling your home as-is, you’ll want to ensure that its price tag is reflective of its less than perfect condition. That said, selling as-is doesn’t necessarily mean having to sell your home for less than it’s worth. It just means that you’re not going to do any repairs or renovations before putting it on the market.
The Bottom Line:
In short, selling your house as-is could save you hundreds of dollars, but the risk is high for major issues that could cause you to incur repair costs. Listing your house for sale on the market as is, generally speaking, is a great option if you don’t want to deal with any hassles related to selling your house. However, always be sure to get a home inspection and do your research on comparable sold properties in the area so you can evaluate the potential downside of selling it as-is. A home in as-is condition is likely to have problems and require repairs, but it can still be a good option for some sellers.