Selling Your Home As-Is
Updated: Jul 21, 2020
We're here to talk to you about selling your home As-is and what that really means, and the pros and cons. We all know that selling your home As-is is this glorious experience where you decide what you would like to sell your home for, and you don’t have to worry about any of the repairs. You don’t have to tell anyone about any of the repairs. You put it on the market and someone from out of state, who doesn’t understand your market comes and places a big cash offer on it and you walk away just singing and dancing.
I’m so sorry, but that’s really not even close. The first thing to know is that all of the potential issues the home may have and repairs that it needs will have to be disclosed and at some point, in time will become public knowledge. As a seller, you are obligated to share disclosures, disclosing any known defects on the property. If you are hiring a realtor to work with you, they have to disclose any defects or repairs needed that they may see in the property that may need to be addressed if the seller themselves, are not disclosing. One problem that we sometimes see is that when buyers see your home marketed As-is perceive it very negatively.
Another thing that we run into is that buyers will bring low-ball offers. They immediately assume that there are some major issues with the home and bring low offers. Another thing that we see is that we have to work harder to demonstrate what your home is worth. A lot of these buyers are making the comparison to other local turn-key properties that have sold. You almost end up in this place where you are constantly trying to justify your price because they are wanting to use all these repairs for reasons to haggle with you.
Something else that you may want to consider is your pool of buyers. It’s going to be a lot smaller because most of your buyers are getting financing and most of your financing does not allow for certain defects in the property and they would have to be addressed prior to purchase. Just to name a few; it might be that it needs a new roof, major foundation issues, no flooring, or cracked windows. Not many buyers want to get into a home that is an As-is or fixer-upper situation. Most home buyers want a turn-key property.
So, why would you even want to sell your house As-is? Certain situations call for it. Maybe, you genuinely do not have the money to make the needed repairs. We have been flipping houses, in addition to Real Estate Brokerage for several years and sometimes there are bad situations and that’s really the best option.
Sometimes people just cannot handle the stress of a home sale because it can be stressful. Something else to be aware of is once you get your home under contract, once the inspection period starts, this really opens negotiations back up. If, for any reason, you got what you thought was a really stellar offer upfront, even though you have told them upfront that the sale is As-is, that does not always prevent the buyer from coming back and asking you to make all of the repairs and\or completely backing out of the deal at that point because they still thought there was a chance to negotiate the repairs.
If you find yourself in a situation where you have a little bit of money and you can make some of the repairs, but not all, I suggest getting in touch with a Realtor and have them help guide you. Not all repairs are created equal. Some of them will benefit you more in the long run.
Lastly! Get a good Realtor! You want to make sure that they are someone who understands your market and understands what kind of value to put on the needed repairs. If you are in the OKC metro area and need a good Real Estate agent, you can call me.
As-Is cash offer for your house here - Metrocashoffer.com Keith Home Team Office - 405-485-4461