Article courtesy of SRES
Many factors can influence your decision to sell including downsizing, moving closer to family, or seeking a more manageable living situation. Have you considered selling the home as-is? Selling as-is means putting the property on the market without making any major repairs or improvements—even when they are needed. This approach has both advantages and disadvantages to consider and discuss with your Senior Real Estate Specialist® to help you decide if an as-is sale is right for you.
1. Time and Cost Savings: Avoiding costly repairs and upgrades can accelerate the selling process and allow you to move on to the next stage of your life more quickly.
2. Reducing Stress: In situations where the emotional toll of staging or repairing a home is too much to handle, an as-is sale may be for you. Eliminating the need for extensive renovations, financing updates, negotiations over repairs, and dealing with contractor hassles can save you stress and allow you to focus on selling and moving more quickly.
3. Attract Investors and Flippers: Investors and property flippers often look for homes in need of renovations. Selling as-is often attracts these types of buyers, sometimes leading to a quicker sale. Investors and flippers generally expect to handle some repairs and have experience buying homes that are not move-in ready.
4. Transparency: When you are listing a home, you are expected to provide a full disclosure about the condition of the property. Selling the home as-is is a possible solution when you do not have all of the information about the property’s condition. If you inherited a home, or are selling on behalf of a loved one who is unable to provide you with the history of the property, ask your Senior Real Estate Specialist® about selling as-is. Your transparency might build trust with potential buyers, free you from liabilities, and lead to a smoother transaction.
Selling a home as-is is a decision that requires careful consideration, especially for individuals 55 and older. The choice has legal, financial, and personal implications, so it is advised that you consult with qualified professionals, including a Senior Real Estate Specialist®
1. Lower Sale Price: One of the largest drawbacks of selling a home as-is is that you are likely to sell your property for a significantly lower price. Buyers typically expect a steep discount to cover the costs of necessary repairs and improvements and the additional liability they take on in as-is sales.
2. Limited Buyer Pool: Homes in need of repairs or updates often have reduced market appeal. Selling a home in its current condition will limit the pool of interested buyers. This can result in the property sitting on the market for a longer period, delaying the sale and your ability to move on. Talk with your agent about market conditions in your area to understand if an as-is sale is likely to move fast or take longer to sell.
3. Potential Inspection Issues: Selling as-is does not free the seller from the need to disclose known defects or issues with the property. Buyers are still likely to conduct inspections, and any significant problems discovered can complicate or even derail the sale. Each area is different, so talk with your Senior Real Estate Specialist® and a real estate attorney to find out what your state requires you to disclose and how long buyers have to back out of an as-is sale.
Sources: Bankrate. (2023). How To Get the Most Out Of Selling Your House “As-Is.” bankrate.com/real-estate/selling-your-house-as-is/#pros-v-cons Investopedia. (2021). Should You Sell Your Home As Is, or Spring for Renovations? investopedia.com/should-you-sell-your-home-as-is-or-spring-for-renovations-5184172
Jason Gelios, SRES-Senior Real Estate Specialist, Author, Public Speaker, and Expert Media Contributor of real estate expertise across the globe.