What Does Selling a House As Is Mean?
Typically, when you sell a house as is, it means that the buyer will purchase the property just as it is, flaws and all. The seller will not invest in any pre-sale home improvements, and requests for repairs will be denied. The prospective buyer will receive the house with all its faults and issues intact.
In fact, “as is” actually has a legal definition in most states. Because of this, the home buyer typically has to sign a purchase agreement with language explicitly stating the current condition of the property.
This means that when you sell a house as is, you are not just handing over the keys and walking away. Nobody expects the buyer to simply discover all the problems with the house completely on their own.
Rather, the seller is legally required to make disclosures, and most purchase agreements have contingencies that allow the home buyer to back out of the sale if an inspection determines that the condition of the home is worse than expected.
Why Would You Sell a House As Is?
Most people who sell a home as is are doing so due to financial or emotional distress.
When home sellers are faced with difficult situations, they may not be able to afford the necessary repairs, or simply may not have the emotional energy to deal with the work involved. In some cases, they may need to sell quickly in order to avoid foreclosure.
Whatever the exact reason, it’s easy to understand why some homeowners would be willing to sell their home below its potential market value simply to avoid dealing with the hassle that typically comes along with selling a home.
What Are the Downsides to Selling a Home As Is?
Unfortunately, selling a home as is can be tricky. When most potential buyers see “as is” on a listing they’ll immediately think one of three things: there is something majorly wrong with this house, the seller must be desperate, or they can make an offer significantly below the asking price.
In many cases, they will be entirely correct.
Because of these common negative preconceptions, if you intend to sell your home as is, you will often need to set the list price significantly lower than the home’s fair market value just to attract some interest.
You’ll also need to be ok losing out on the profit you’d make if you were to do a few minor pre-sale repairs. However, even with a bargain list price, you’ll likely have a hard time attracting potential buyers to your property.
The main markets for these types of homes are house flippers and people who don’t mind purchasing a fixer-upper.
Looking to sell a house as is? Get in touch with our team at St. Louis Realty Advisors. We buy houses in any condition and are ready to extend a fair cash offer to purchase your property. To get started give us a call at 314-270-1601.