Selling a Home "As-Is"
What does it mean to sell a home “as-is”?
An “as is” sale of real estate is pretty much what it sounds like: the seller is listing the house in its current condition, and is not willing to make repairs or improvements, nor to give a buyer credit for needed repairs or improvements.
Should I sell my home “as-is”?
Because your listing says “as-is” upfront, you will drive away a lot of potential buyers. Even if you are in a position where you want to put minimum effort or money into the home to make a sale, you could still benefit from avoiding the “as-is” designation in the listing.
Pros Of Selling “As-Is”
Save time: By not making any repairs to your home, you can put the home on the market sooner than later, saving a ton of time. For people looking to sell quick, this can be beneficial.
Save money:
Not having to do any repairs on your home can save money, especially if it adds up to thousands of dollars. Increase your chance of a quick sale: “As-is” buyers are often stronger cash buyers. Without having to satisfy the multiple requirements of a lender, you can shorten the timeframe to close-with many deals closing in less than 7 days.
Decreased chance of a home inspection being completed:
Usually a home inspection is not ordered when a buyer is purchasing a home “as-is”, making it less likely there will be renegotiating after the inspection.
Cons of Selling a House “As-Is”
Fewer offers: Fewer buyers will have an interest in a home that is for sale “as-is”, meaning fewer offers. And fewer offers means lower priced offers.
Lower profits:
This is probably the worst con of selling “as-is”. Home buyers will come in with a lower offer when they see a home is being sold “as-is”.
Risk turning of buyers:
Some buyers see “as-is” in the homes description and assume it’s in disarray, or that it needs major repairs.
Repairs aren’t off the table:
Just because a home is selling as-is doesn’t mean that home buyers won’t try to negotiate a repair or two. It may be advantageous for a seller to consider a small repair to get the deal done.
How To Sell a House “As-is”
Get advice from a pro:
Working with a Realtor who has experience selling “as-is” homes can make things much simpler, and also get the seller a better offer price.
Disclose any defects:
Even though a seller is not making any updates or repairs on the home, past and present issues should be disclosed.
Do a pre-listing inspection:
A pre-listing inspection is a great way to know what is going on with the home and what to properly disclose. Remember, selling a home “as-is” does not mean a seller doesn’t have to disclose issues. This will also help avoid lowball offers from buyers.
Set a realistic price:
Setting the right price from the start can make a big difference between a home selling fast, or sitting stagnant on the market. Home sellers should know if they are in a buyers or sellers market, and price it accordingly.
Get cost estimates for potential repairs:
Knowing what the repair costs are for the major repairs the home needs will better position the seller to handle negotiations with the buyer.
Describe your listing as “as-is”:
From the homes listing description to the purchase agreement, state that the home sale is “as-is” in everything. It should be very clear that the home sale is “as-is” and that no repairs are to be made by the seller.
Request a cash offer:
A cash offer is when a buyer has cash readily available to buy your home. Whether the cash buyer is found through the home sellers or agents network, it can be a benefit due to the process being sped up. This is because cash buyers don’t need a lender to obtain financing.
Hire the right professional with experience selling “as-is”:
Hiring a real estate professional who has experience selling “as-is” homes is crucial to having the home sell quickly and for the right price. Homes selling “as-is” require a different type of skillset that only a real estate pro with experience can provide.
Use keywords that matter:
Add powerful and positive keywords to your listing description that buyers will appreciate. Examples of eye-catching keywords are like spotless, upgraded, and landscaped. (Only use keywords that are accurate)
Small fixes that make “as-is” homes look better:
Spruce up curb appeal: Even if you are selling a home “as-is”, it’s important to have good curb appeal. It doesn’t take much effort to trim bushes and trees, clear pathways to the home, and in some cases ass mowers or mulch.
Deep clean and declutter:
Hiring a professional cleaner to deep clean a home can not only be affordable, it can provide a potential home buyer with a more comfortable feeling. Most professional cleaners are affordable and charge anywhere between $2-500 for a whole house deep clean-depending on your square footage.
Add fresh paint:
A fresh coat of paint can work wonders for your home and potentially increase it’s value by thousands of dollars. Painting rooms from a custom color to more neutral colors has the biggest positive effect-especially when selling.
Hit the market at the right price:
Setting the right price when you hit the market can make the difference between a successful sale and one that’s not. Overpricing a home can be detrimental to a seller, steering home buyers away to other properties. Homeowners should set the price of their home based on what other similar homes are or have sold for, and then factor in repair costs and expenses needed to update the home.
Keep the home maintained until closing:
Selling a home “as is” doesn’t mean just letting the homes condition worsen after an offer comes in. Homeowners need to maintain the overall condition of the home i.e. handling any issues such utilities, water leaks or plumbing issues.
An “as is” sale of real estate is pretty much what it sounds like: the seller is listing the house in its current condition, and is not willing to make repairs or improvements, nor to give a buyer credit for needed repairs or improvements.
Should I sell my home “as-is”?
Because your listing says “as-is” upfront, you will drive away a lot of potential buyers. Even if you are in a position where you want to put minimum effort or money into the home to make a sale, you could still benefit from avoiding the “as-is” designation in the listing.
Pros Of Selling “As-Is”
Save time: By not making any repairs to your home, you can put the home on the market sooner than later, saving a ton of time. For people looking to sell quick, this can be beneficial.
Save money:
Not having to do any repairs on your home can save money, especially if it adds up to thousands of dollars. Increase your chance of a quick sale: “As-is” buyers are often stronger cash buyers. Without having to satisfy the multiple requirements of a lender, you can shorten the timeframe to close-with many deals closing in less than 7 days.
Decreased chance of a home inspection being completed:
Usually a home inspection is not ordered when a buyer is purchasing a home “as-is”, making it less likely there will be renegotiating after the inspection.
Cons of Selling a House “As-Is”
Fewer offers: Fewer buyers will have an interest in a home that is for sale “as-is”, meaning fewer offers. And fewer offers means lower priced offers.
Lower profits:
This is probably the worst con of selling “as-is”. Home buyers will come in with a lower offer when they see a home is being sold “as-is”.
Risk turning of buyers:
Some buyers see “as-is” in the homes description and assume it’s in disarray, or that it needs major repairs.
Repairs aren’t off the table:
Just because a home is selling as-is doesn’t mean that home buyers won’t try to negotiate a repair or two. It may be advantageous for a seller to consider a small repair to get the deal done.
How To Sell a House “As-is”
Get advice from a pro:
Working with a Realtor who has experience selling “as-is” homes can make things much simpler, and also get the seller a better offer price.
Disclose any defects:
Even though a seller is not making any updates or repairs on the home, past and present issues should be disclosed.
Do a pre-listing inspection:
A pre-listing inspection is a great way to know what is going on with the home and what to properly disclose. Remember, selling a home “as-is” does not mean a seller doesn’t have to disclose issues. This will also help avoid lowball offers from buyers.
Set a realistic price:
Setting the right price from the start can make a big difference between a home selling fast, or sitting stagnant on the market. Home sellers should know if they are in a buyers or sellers market, and price it accordingly.
Get cost estimates for potential repairs:
Knowing what the repair costs are for the major repairs the home needs will better position the seller to handle negotiations with the buyer.
Describe your listing as “as-is”:
From the homes listing description to the purchase agreement, state that the home sale is “as-is” in everything. It should be very clear that the home sale is “as-is” and that no repairs are to be made by the seller.
Request a cash offer:
A cash offer is when a buyer has cash readily available to buy your home. Whether the cash buyer is found through the home sellers or agents network, it can be a benefit due to the process being sped up. This is because cash buyers don’t need a lender to obtain financing.
Hire the right professional with experience selling “as-is”:
Hiring a real estate professional who has experience selling “as-is” homes is crucial to having the home sell quickly and for the right price. Homes selling “as-is” require a different type of skillset that only a real estate pro with experience can provide.
Use keywords that matter:
Add powerful and positive keywords to your listing description that buyers will appreciate. Examples of eye-catching keywords are like spotless, upgraded, and landscaped. (Only use keywords that are accurate)
Small fixes that make “as-is” homes look better:
Spruce up curb appeal: Even if you are selling a home “as-is”, it’s important to have good curb appeal. It doesn’t take much effort to trim bushes and trees, clear pathways to the home, and in some cases ass mowers or mulch.
Deep clean and declutter:
Hiring a professional cleaner to deep clean a home can not only be affordable, it can provide a potential home buyer with a more comfortable feeling. Most professional cleaners are affordable and charge anywhere between $2-500 for a whole house deep clean-depending on your square footage.
Add fresh paint:
A fresh coat of paint can work wonders for your home and potentially increase it’s value by thousands of dollars. Painting rooms from a custom color to more neutral colors has the biggest positive effect-especially when selling.
Hit the market at the right price:
Setting the right price when you hit the market can make the difference between a successful sale and one that’s not. Overpricing a home can be detrimental to a seller, steering home buyers away to other properties. Homeowners should set the price of their home based on what other similar homes are or have sold for, and then factor in repair costs and expenses needed to update the home.
Keep the home maintained until closing:
Selling a home “as is” doesn’t mean just letting the homes condition worsen after an offer comes in. Homeowners need to maintain the overall condition of the home i.e. handling any issues such utilities, water leaks or plumbing issues.
Key Take Aways
- You’ll likely receive a discounted price. To avoid getting taken to the cleaners, work with Jason Gelios who can help you reject lowball offers and maximize value
- Explicitly include “as is” in the listing; otherwise, buyers won’t get the memo.
- Order a pre-listing inspection to help with accurately pricing the home.
- Understand that even if you list “as is,” some buyers will try to negotiate on the inspection. Again, a great agent can help you navigate through it. Avoid pricey cosmetic upgrades, but know that tidying up and improving curb appeal can go a long way.
- You will have to work harder to demonstrate why your house is worth your asking price.
- You will attract fewer buyers
- Real estate market conditions can influence selling “as-is”
- Pricing the home properly from the start is very important
You can count on Jason Gelios SRES® to guide you through the process of buying or selling your home,
making the transaction less stressful and more successful.
making the transaction less stressful and more successful.
Ready To Get Started?
