What is an As-Is Sale?
Selling a home as-is means you are listing it with no intent to repair any existing damages, or offer a buyer any credits for damages found. Essentially, when you enter into an as-is sale, you and the buyer agree that any repairs made will be done and paid for by the buyer. As-is sales do often mean that a home is likely to have a few issues, and most people purchasing as-is homes know what they’re getting into. They’re the type of buyer who’s up for a project, and they’ll make their offers accordingly. There are a ton of benefits to selling as-is, but it’s good to know that most as-is homes sell for much lower than market price.
Selling as-is doesn’t mean not disclosing
It’s really important to remember that just because you’re selling a home as-is doesn’t mean you can hide or lie about the condition of your home. The law requires sellers to answer all direct questions about the home honestly, and if there’s a major issue with the home that needs fixing, the buyer will need to know. If you’re looking to get rid of a troublesome home quickly, selling as-is is a great way to go, but you still have to be honest, and disclose the facts.
What are the Benefits of Selling a Home As-Is?
Selling a home is never easy, regardless of how you list it, but there are benefits to every type of sale, as-is sales included. The benefits of as-is sales primarily come down to convenience and time, as they can be made quickly to help a homeowner get out of a sticky situation, or simply move on from a home that had troubled them for too long. Here are just a few benefits of selling a home as-is:
One of the number one benefits of an as-is sale is that they happen fast. Especially if you’re in a competitive neighborhood and selling as-is, you’re likely to see a number of bids, and those buyers will close quickly. As-is sales often take less time, because there’s less of a need for inspections and other sorts of red tape. When you sell as is, you’re likely to get a few offers and then close in a few weeks, so long as you’re pricing competitively.
Potential for cash offers
A number of real estate investors, professional home ‘flippers’, and people looking for a fixer-upper are open to making cash offers. This makes the sale a lot easier, since you won’t have to wait for lender approval. It’s also easier for you, because instead of waiting to get your money for the home, you’ll have it immediately, so you can pay off that mortgage and move on.
Little out of pocket expense
When you sell a home as-is, there’s little you have to do, other than coordinate with potential buyers. Though you’ll want your home to be clean and tidy for walkthroughs, you won’t have to worry about paying for repairs, hiring someone to clean the carpets, repainting older walls, or anything of that nature. In a traditional sale, just getting a home ready for an open house can cost a great deal of money, from hiring a realtor, to staging the home, to ensuring every surface is spotless. When it comes to as-is sales, none of those worries apply. You simply disclose the major issues with the home, and move out. No additional effort or extra money spent.
You’re able to move on quickly
Perhaps the best benefit to an as-is sale is the fact that once you close, you can simply move on. There won’t be any outstanding repairs to pay for before the new owner moves in, and in most cases, as is sales close very quickly. That means that almost immediately after a buyer makes an offer you accept, you can move out, get paid, and move on with your life. When everything goes right, an as-is sale is the easiest, most pain-free way to get out of a home in very little time.
Three of the Most Common Reasons to Sell a Home As-Is:
The benefits of selling a home as-is are clear, but there is always one major sticking point: homes sold as-is often sell for lower than market value. It can be tough to consider selling your home for less than it’s worth, so if you’re struggling to make that decision, here are a few of the most common reasons homeowners choose to sell their homes as-is.
From foundational damage to structural issues to mold and spores, there are so many expensive things that can go wrong with a home. As homes age, they tend to accumulate more damage, and oftentimes the cost to repair that damage is more than the homeowner can bear. If you’ve got a home that needs more repairs than you can afford, selling as-is is a good way to get it taken off your hands.
The housing market is not for the faint of heart. There are regular dips and spikes, and it’s often impossible to predict. For many homeowners, having a house sit on the market can be really stressful. You’re paying mortgage on it, and you’re often not even living in it, which means you’re paying for two homes at the same time, which is a lot of outgoing money. As-is sales can shorten that amount of time you need to pay for two homes.
A stressful market also comes into play when people receive property as inheritance. If an older relative owned the home and wasn’t up to caring for it for the past few years, the home can be a lot to handle, and it’s often easier and more stress-free to list as-is.
Finally, some homes are listed as-is out of necessity. If there was an accident or illness in the family, or something happened where the homeowner fell behind in house payments, an as-is sale can save them from foreclosure. If you can find a buyer to purchase the home before it goes to auction, it’s easier to get your life back and find another house. Listing as-is is often the best way to make a sale during the crunch time of pre-foreclosure, since they’re often much quicker and paid in cash.
If you’re considering selling your home as-is, no matter the reason, give Renewed Homes a call at (616) 208-3534. We specialize in homes that need a little extra care, and aren’t afraid of as-is buys that have structural, foundation, or water damage. To sell as-is quickly, contact us online today for your free cash offer.