Not every realtor, or homeowner or prospective homeowner, understands what selling a home as-is means
It sounds obvious, but sometimes there is confusion. When selling a home as-is, for sellers it means when an inspection is done, it is for the buyer’s information purposes. Not for negotiation. For buyers, it sets the expectation of a listing price. The house is expected to be sold below market value due to project work on hand after closing.
A simple definition of an ‘as-is’ sale
Selling a home ‘as-is’ means that the house has been identified to have issues and/or defects that lower its market value. The price of the home is lower because the seller opted to not make repairs that would be necessary or more appealing for a conventional sale. Additionally, sellers will push back on a buyer’s attempt to negotiate items found during the inspection. But this only applies if the seller has adjusted the price in the listing.
What an ‘as-is’ sale is not
It is not listing a house at market value and expecting a buyer to disregard negotiating items found during inspection. As a seller, refusing to negotiate items found at inspection is more likely to result in a canceled contract than a clean sale. Especially if the homeowner is listing the house at a high, or average, market value price and there are notable issues. Sometimes, a home is listed for sale as-is without notable issues, but the house lacks updates to high value areas. For example, if the kitchen and bath(s) have not been updated, some sellers will use an ‘as-is’ label. But, in these cases, it’s easier to price the house accordingly and only negotiate if there are true defects found at inspection.
Dealing with buyer expectations
Buyers expect to negotiate at the conclusion of an inspection. It is an assumption by all parties that something will be presented as a “Notice of Inspection Results”. But, and the buyer’s agent should know this, that doesn’t mean the seller will address the items. It is the goal of the buyer’s agent to negotiate some, most or all of these items into either seller repairs, seller credits at closing, or reduction in contracted purchase price. As a seller, be careful not to use the ‘as-is’ label to simply try and deflect any negotiation. Again, buyers will be expecting the house to be priced lower than comparable homes. And, if not, be prepared for feedback that the house is overpriced.
How to sell a home as-is
It’s actually quite easy. But make sure you do your diligence with a local realtor (or call us, we’ll help you with it) regarding whether or not your home really does make sense to list ‘as-is’ or if it makes more sense to correct a few issues. This way the house can be sold closer to current (comparable) market value. Here’s a simple, three-step guide to selling your house ‘as-is’. Good luck, or give us a shout.