Do you want less hassle when it comes time to sell your home? If so, you may want to think about selling your home “as is.” Selling “as is” simply means putting the property on the market in its current condition, with few or no improvements. Read on to learn the benefits of selling your home “as is” and how a correct pricing strategy could get you more money than you even anticipated.
There are four primary reasons or benefits as to why sellers decide to sell “as is”:
Low Upfront Expense
“As is” sellers are not expected to spend money on pricey improvements, like updating the kitchen or bathroom, or replacing the windows. Instead, an “as is” seller may choose to not make any repairs or opt to make minor upgrades, such as freshly painting a room or replacing a light fixture. Deciding on some inexpensive repairs may be a good idea and could sell your home faster, depending on your situation and the home’s condition.
Little Upfront Work
As an “as is” seller, you also don’t have to go to the trouble of clearing out your belongings, going into an organizing frenzy, or taking the time for a deep cleaning. With the proper disclosures concerning the state of the house, your marketing will not be any less effective, and the buyers may let you leave some or all of your unwanted stuff behind.
When deceased parents leave their homes to their children, the best way to divide the value of the property is by selling it and distributing the proceeds among the siblings. In such cases, when no one has the time or money to prepare the house, it is best to sell “as is” in order to acquire and disperse the money quickly.
Selling A “Tear Down”
When the land on which your house sits is more valuable than the structure itself, it is typically best to sell the property “as is.” It makes no sense to improve a house that will be torn down for a new structure.
While selling “as is” may be in your best interest, there are a few important things to keep in mind.
Material Defects Have To Be Disclosed
All sellers, even if they plan to sell their home “as is,” are required to disclose known defects about the property and to provide information on any issues that a buyer may ask about, such as termite damage, a wet basement, non-working appliances, plumbing leaks, etc. The exceptions to disclosure law are usually the sale of the decedent’s estate, a foreclosure or a sheriff’s sale.
Buyers Can Negotiate For Repairs
Moreover, an “as is” sale doesn’t mean buyers won’t try to negotiate repairs. Home repairs are subject to negotiation regardless of how the property is advertised. A seller can opt to not make any repairs, but then the buyer has the right to void the contract, assuming there is a home inspection contingency in the purchase agreement and it is done within the timeline reflected in the contract.
The Home Needs To Be Priced Appropriately
If you want to avoid investing money on improvements, your asking price should typically be reduced by the amount it would cost for the future buyers to make their own changes. If the home is in poor condition or has not been updated, most buyers interested in the home will be investors or builders who will look to fix up the home and flip it or tear it down and build a new structure. Real estate investors and builders will want to purchase an “as is” home at below the property’s current market value to ensure they make a profit on their investment. Low-ball offers are not uncommon, but if you have a good pricing strategy, you should not have to sell your home for less than what it is worth in “as is” condition.
So, how can you make selling an “as is” home both efficient and financially rewarding? Contact our team at St. Louis Realty Advisors at 314-270-1601 for your quick, fair cash offer.