Tuesday, December 1, 2020 / by John Salkowski
Here’s how selling as is can benefit you.
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If you have a home to sell, selling it in as-is condition can actually benefit you.
The biggest pro to selling as is: Your transaction will involve less stress, less hassle, and no repairs. When one of my clients sells a home as is, I always make sure that the “as is” verbiage is mentioned in the agreement of sale document. I want buyers in this situation to know that they’re buying as is—meaning you won’t repair anything or offer any concessions. The buyer can still schedule home inspections, but those inspections will be for informational purposes only. They can’t ask for any repairs or concessions based on them.
If the property in question is an estate (i.e., you took it over for a deceased relative and have no knowledge of it) rather than the home you live in, you don’t have to fill out a property seller’s disclosure. This document basically describes everything you know about the property. If you were living in it and aware of any material defects, you’d have to fill this form out. If the home is an estate, you don’t have to worry about it.
"Regardless of your situation, my team and I are here to help you weigh the advantages and disadvantages of selling as is versus making repairs."
However, selling a property as is will not relieve you of any legal liability. For example, if you never paid a contractor for past work they did on the property, they can file a mechanics lien that will show up against the title when you sell the home.
The main reason people sell properties in as-is condition is that they don’t have the funds to upgrade it, and this decision will be reflected in the home’s price. Pricing a property is a skill and an art. Not every agent can sell an as-is property or negotiate an as-is sale. In my 14 years in the real estate business, I’ve sold hundreds of homes in as-is condition. To price an as-is home, you have to look at the comparable sales of other properties and the conditions of those homes in relation to yours.
That being said, the main con to selling an as-is home is that you may not get exactly what you want for it. If you modernize your home with new siding, windows, flooring, baths, etc., you stand a much better shot at maximizing your return on investment.
Regardless of your situation, my team and I are here to help you weigh the advantages and disadvantages of selling as is versus making repairs. When I agree to represent a seller, I make sure they don’t do any repairs until they meet with me specifically because I want them to get a return on their investment. If they spend $5, I want them to make $10 back. So whether you’re thinking of selling as is or the traditional way, give me a call so we can schedule a no-cost, no-obligation consultation.
As always, if you have any other real estate questions, feel free to reach out to me as well. I’d love to speak with you.