If you’re thinking about selling your house as-is, it’s important for you to have all the facts beforehand. This post will cover the pros and cons of selling your house as-is. As well as what situations a quick as-is sale can be beneficial.
There are three options to choose from when selling your home in as-is condition. You can go through a real estate agent, you can sell on your own (For Sale By Owner), or you can sell to a company like ours that buys homes for cash. The people who choose For Sale By Owner usually do so to save on realtor commissions, but they will also have to overcome some hurdles with their buyer’s mindset. (We’ll cover that later.) The others who choose to sell to our company choose to do so because it is a fast transaction with a dependable buyer.
What Selling As-Is Means
Homeowners assume that selling a home as-is means they will not have to make any repairs to the property (which is true) and that they won’t have to disclose problems with the property.
Selling a home as-is means the home is sold in its current state (warts and all) and with the understanding that no repairs will be made before the home is sold. The terms will be spelled out in the purchase and sale agreement that the buyer signs indicating they understand the conditions of the sale.
What Selling As-Is Does Not Mean
It’s important to know that selling as-is doesn’t relieve the homeowner from all the usual obligations that come with selling a home including disclosing issues or problems with the home. Disclosures are part of the sellers’ legal obligation to answer questions honestly about the state of the home.
These disclosures would be necessary whether you’re using an agent or selling the house on your own or to a cash buyer.
The Cons for Selling a House As-Is
Unless you’re selling to an investor like us, most issues with selling a home as-is are apparent when selling your house using a real estate agent or on your own. If you want to sell for the best price to a retail buyer (like a family) your home will likely require a longer time on the market and you may struggle to get top-dollar.
Buyers and agents will assume the house has serious issues
Investor businesses are designed to handle homes with serious issues, but retail buyers want a house that they can just move into. Without as many retail buyers interested in buying your house, your buyer pool will be extremely limited.
“As-is” can be one of those red flags that drive away buyers. Your agent will need to work extra hard to convince buyers of your home’s value and this can lead to your home on the market much longer than you expect.
Even though your agent may require you to disclose any serious defects, buyers may still assume other flaws are hidden.
Pros for Selling As-Is
San Diego is currently in a seller’s market. This means that there are fewer houses than buyers, and homes are easy to sell. If you find yourself in a situation where you need to sell your house quickly, selling as-is could be a perfect solution.
Situations that are suited for selling as-is
Unwanted Inheritance
For some, being willed a house can be a blessing but, for others, it can be a burden. If the house is more expensive to own than the heir can afford keeping the house could be more stress than it’s worth.
Desire to Avoid the Stress of Selling
Selling a home can be challenging for anyone who is dealing with a serious illness or for the families who are caring for them. Under these circumstances, a quick sale that avoids home showings and a drawn-out process is the most desirable outcome.
Financial Distress
Owners who find themselves in a distressful financial situation may need to sell their home immediately or suffer foreclosure, bankruptcy and credit ruin.
For all of these situations, selling as-is can be the best, and easiest choice. Our company is uniquely positioned to help sellers in these kinds of situations.
Making the Right Choice
Depending on your unique situation, selling your house as-is might be the best option. If you’re not in a hurry, then going through an agent could be right for you. If you’re not sure, give us a call. We can give you a no-obligation consultation and offer.