Selling Your House “As Is”
Selling “as is” can make it easier for you to sell your home quickly and avoid the hassle of expensive repairs, but it does have some drawbacks.
“When a home is being sold ‘as is,’ the homeowner is selling the home in its current condition with no intention of making repairs or improvements before the sale,” says Fara Espandi, seasoned Sales Associate with ERA Justin Realty. “This can potentially save the seller time, effort and money. If you have inherited the home, you probably don’t know what repairs it actually needs. Selling ‘as is’ frees you from the worry of problems potential buyers may ask you to repair.”
Once you have a realistic sense of how much repairs will cost, you can focus on pricing. A seasoned Realtor, such as Fara, can give you a good idea of the fair market value of your home if it were in good shape. By using this number in conjunction with the cost of repairs, you will be able to come up with a listing price that is attractive to both regular home buyers as well as investors.
Fill Out a Seller’s Disclosure
Selling a home in as-is condition because of repair costs, however, does not relieve the seller of their responsibility to disclose any important information about the condition of the home. Any problems the seller knows about needs to be disclosed; and failing to do so could cause serious problems later down the road. A real estate agent will work with you on a seller’s disclosure document to outline any problems that exists with the home. This includes everything from previous water damage to foundation issues or boundary issues. In addition, any issues with hazardous materials like lead-based paint and asbestos need to be disclosed. If the buyer feels the seller was hiding material facts about the condition of the property, they could sue for damages.
Selling “as-is” does not mean the buyer can’t renegotiate the price, and as long as there is an inspection clause in the contract, the buyer can get out if the repairs are too costly. The buyer has three options after the inspection: 1) Close at the agreed-upon price; 2) Cancel the contract; or 3) Renegotiate with the seller for a lower price. The as-is seller can hold their ground and refuse to renegotiate the price or terms of the sale but this whole process can take weeks.
It can be difficult selling a home that needs significant repairs. Your best bet is to hire an experienced real estate professional, like Fara Espandi, to navigate you through this process. To reach Fara, or any of our experienced Sales Associates, call (201) 939-7500.