When selling a house, the goal is usually to get as much profit as possible. In other cases, you just need to sell the house and move on – selling the house ‘as is’. This means that you will sell the house in its present state without making any changes.
Before the house can be sold, the buyer and seller must reach an agreement that no repairs will be made. When selling a house ‘as is’, you should not hide any defects or misrepresent information to the buyer. You have to disclose the following information:
- Leaky roof
- Structural defects
- Legal issues that cloud the house’s title
- External issues such as levels of noise
- Termite damage
Benefits of selling the house in its current state include:
Selling to a cash buyer – selling a house for cash is much quicker than a normal sale. Moreover, you do not have to deal with real estate agent fees.
Save money – you do not have to renovate your home or stage it for showings thus saving money.
Avoid stress – if you have inherited a home, selling it ‘as is’ helps you to avoid stress because it sells quicker.
Here are some useful tips for selling your house in Florida ‘as is’ for instance:
To make a successful sale, you need to understand the true condition of the house that you want to sell. Any price that you set will be arbitrary until the buyer and his or her lender conduct their own appraisals and inspections. You would be better off discovering any problems on your own before you list the house.
Prelisting inspections disclose any relevant information to the buyer, which makes it less likely that he or she will run.
Conduct inspections to assess the true condition of your property then obtain estimates from a few reputable contractors. Providing buyers with an estimate will eliminate the risk of having the buyer’s agent estimate costs.
You should provide the buyer with these estimates when giving him or her the inspection report. Of course, the buyer might still choose to work with his or her own inspectors and contractors. At least, you will have provided a baseline for the buyer to work with.
Ensure that you price the home to reflect the work that is needed because the buyer is going to do the same before making an offer. The buyer will consider everything that requires work whether it is structural or cosmetic. Even if the house is livable in your eyes, the buyer is not likely to put up with damage for long.
For instance, if the heater is working but faulty, you need to consider the fact that they buyer might replace it soon after buying the house.
Buyers might still want to negotiate even if you are selling the house in its current state. Therefore, you need to be ready to account for things that need fixing by making cost concessions, offering price reductions, or addressing something that prevents the buyer from getting HOA – homeowner’s insurance.
Once you get estimates, you should consider doing a few repairs before selling. Although this defeats the purpose of selling ‘as is’, doing a few repairs will speed up the sale. For instance, if your house has damaged plumbing or a leaky roof, it will be much harder to sell.
While most buyers are willing to take on a few challenges, major concerns tend to be deal breakers. Unless you are willing to sell your home below its market value, buyers will avoid your damaged house.
You need to be honest when selling your property in its current state. More importantly, you should ensure that the contract mentions this. If needed, you should use the phrase ‘as is’ when listing your home. You also need to be forthright when you reference estimates and inspection reports that are open for review.
The term ‘as is’ puts off some buyers because they might not understand what it means. Therefore, you need to eliminate the element of surprise and manage the buyer’s expectations upfront. Moreover, you need to consider doing repairs, prelisting inspections, get estimates, be flexible, and price the property correctly.