5 Tips To Make Buyers Interested When Selling A House As Is
Sometimes people find themselves in a situation where they need to sell their house as is. Perhaps they’ve already moved and can’t be there to arrange for repairs, or maybe they don’t have the money that improvements will cost.
Before we get into the as-is selling tips that will make buyers interested in your home, it is important that we level-set what selling as-is actually means.
First, selling your home as-is means that you are selling the home in it’s current condition and you are not willing to make any repairs to your home to accommodate a buyer.
What Does Selling a House “As Is” Mean?
When you sell a property as is, it means that the buyer will purchase and take ownership of the property in the exact condition it is in currently, including the good and the all the bad. The seller is stating that they will not make any pre-sale home improvements, and if a buyer requests that repairs are made, they will be typically be denied.
Here is what selling your home as-is does NOT mean.
You can not and should not intentionally hide or misrepresent defects or other important information to buyers that might cause them to not buy your home. In fact, many states still require your provide seller disclosures about the condition of your home.
Intentionally hiding or misrepresenting defects can result in serious legal action against you.
Selling a house as is can be a big challenge, but there are things you can do to meet that challenge.We can buy your house as-is. Get your fair cash offer here. (January 22, 2020)
Here are 5 tips for keeping buyers interested when selling a house as is.
1. Understand what absolutely has to be done.
The vast majority of mortgage lenders insist that the home not have structural, health, or safety issues before they will lend money to a buyer. That means if your house has code violations and you choose not to fix them, you may limit the number of potential buyers to only those who can pay cash. And even then, be prepared for cash buyers to expect a bargain price.
2. Know that disclosures are still required.
Selling a house as is does mean “what you see is what you get,” but complete disclosure is still required by state law. That means that the buyer will get a report from a licensed home inspector outlining the problems, including problems that are not visible. When a sales contract is drawn up, the words “as is” need to be written clearly in the sales agreement, and the buyer needs to initial next to the words so that they cannot later claim that they didn’t know they were buying as is.
Here are some important items that you should disclose to potential buyers.
- If your home is located in a flood zone
- Heating system problems
- Underground oil tanks
- Plumbing or electrical system problems
- Sewage system problems
- Any asbestos insulation or building materials
- Any lead based paint or plumbing
- Foundation/slab problems or settling
- Basement water seepage/dampness
- Sump pump problems
- Roof problems
- Siding problems
- Termite, insect, rodent or pest infestation problems
- Fire and/or smoke damage
- Radon levels that exceed the acceptable EPA limit
- Chimney, fireplace, wood or coal stove problems
3. Know the competition.
Tour as many comparable homes as possible and note their conditions and amenities. You will most likely find that kitchens and bathrooms can be deal breakers, while other home improvements don’t matter as much. If your house falls short on features that are important to buyers, be prepared to price low. If you hire a professional appraiser, tell him or her up front that you plan on selling as is so you can set the price appropriately.
4. Make a plan for responding to lowball offers.
Because as is houses attract investors, contractors, first time buyers without a big budget, and house “flippers,” you can count on getting lowball offers. Try not to take it personally. Know how low you will go and be prepared to make a swift counteroffer to any lowball offers you receive. Some buyers may be willing to meet you halfway.
5. Keep the house as clean and neat as possible, inside and out.
You may wonder why you should bother if there are holes in the sheetrock or all the faucets leak. But cleanliness does make a difference. If you keep your yard mowed and your house ready for a viewing at all times, you can schedule potential buyers for a tour before they have time to change their minds. Plus, if you keep the beds made, the dishes put away, and the toys picked up, it gives the impression that you’re not selling as is due to laziness or lack of pride in your home, but because of financial or practical circumstances.
If you have any time or money you can use toward minimum repairs, it could be wise to do so. The following repairs should take precedence:
- Fixing code violations
- Repairing roof leaks
- Fixing a broken heating / air conditioning system
- Patching holes or cracks in the ceilings and walls
- Replacing broken windows
What Are The Benefits of Selling a House As-Is?
Now that you have our tips that will help you sell your house as-is, you might not be convinced that it is still the right path for you.
While there are negatives to consider, there also is serious advantages you should consider.
The advantages of selling a house as-is including the following:
- Save Money – one of the major benefits of selling a house as is is that you can save a lot of money by going this route. You will not have to make major interior or exterior improvements, and you have to worry about staging the home for showings. Most people in considering this option don’t want to deal with the major expenses that come with fixing up a house in order to make it a traditional real estate sale.
- Sell Your Home Quickly – If selling your home as quick as possible is a priority, selling it as is might be the best way to go. As we just discussed, making home improvements not only is costly but it also adds a lot of time to the selling process. If you are the DIY type, you know that it usually takes longer to do repairs yourself, since you have to work around your career and personal commitments. All the while, your home will not be on the market and adding on valuable time.
- You Can Sell To A Cash Buyer – The most common option for those who are selling their houses as is is to sell to cash buyers. Selling a house for cash has a lot of benefits, including the fact that the process is much simpler than a typical sale that needs a mortgage. The reason a lot of deals fall apart is because the bank doesn’t approve a buyer for a mortgage loan. This is for a variety of reasons. If you choose to sell as is and for cash, you bypass all these problems and almost certainly will get your proceeds from the sale.
- Avoid Stress After Inheriting The Home – If you inherited a home after your loved one passed away, you might have to decide if your best option is to sell it. If so, selling a house as is could be your best option. When this inherited house gets sold with the as is method it will allow you to avoid a lot of the stress that comes with trying to manage a large asset among the heirs. This will allow everyone to move on quickly and will the least amount of stress in a stressful situation.
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