Sell Your House ‘As-Is’
Before we dive into whether or not you should, let’s define what an ‘as-is’ house means to the market. When a house is listed ‘as-is’, it means that there is no negotiation on the purchase price for notable defects to the home. It means that any and all issues found related to the home are at the buyer’s risk and their risk alone. The seller is not taking responsibility for any issues. Selling a house ‘as-is’ usually is the final effort to simply get out and take the best offer possible for a purchase price. Banks, HUD, FannieMae, FreddieMac – all sell houses in ‘as-is’ condition. Private sellers will also do this if they are without any option or, more likely, have agreed to short-sale with the bank.
Why Buy a House that is listed ‘As-Is’
The decision really starts with a question. Are you seeking a house that is a fixer-upper or a fixed-up house? Fundamentally, it comes down to desire, time and money. But many buyers fail to consider the non-financial side of buying a fixer-upper (as-is) house. For example, time is a problem. What if the house isn’t able to be lived in while the work is being done? What is the plan? How long are you (the buyer) willing to live elsewhere while the work is completed? What if you’re doing the work yourself? Is this your only ‘job’ or do you have somewhere else to be from 9-5? Buying a house that is for sale ‘as-is’ has an appeal. It is like we’re back in grade school and using building blocks to make something. Yes, it can be fun. But it is a lot of work.
Why Sell a House ‘As-Is’
As a seller, you have to account for the buyers in your market. What is being sold? New homes? Fully renovated? Or, are people buying more based on affordability and not making changes? Before you decide if you should sell your home in ‘as-is’ condition. Take a drive. See what’s selling in your area. Just remember, a dollar spent fixing it up isn’t necessarily going to be a dollar back. Especially if you’re only fixing things that are expected to be there and in good shape (like a roof).
Either way, it’s a good read for both buyers and sellers. This article addresses a number of questions for sellers considering making repairs or putting the house on the market ‘as-is’.
https://www.thebalance.com/should-i-fix-up-my-home-or-try-to-sell-as-is-1798973
But, if you ever have questions or need an option for selling your home – give us a call.
Thanks,
g.