Yes, you can sell your house as is without any fuss over its repairs. Home renovations take at least over a month to complete. This may increase your selling timeline to more than 3-4 months. Furthermore, the repairs may not give you a substantial ROI.
Selling your home as is benefits you when you want to sell your home quickly but don’t have the budget. You can even save on real estate agent commissions. If you list on the MLS with a cash buyer marketplace, you can bypass the 3% listing commission. You can receive offers from multiple cash buyers who buy properties as is.
How to Sell a House As Is?
With these 3 steps, you can sell your home as-is:
- Know Your Selling Options: You have 3 options when selling your house as-is:
- Cash Buyer Marketplace: You can get maximum exposure for your home on a cash buyer marketplace. Cash home buyers make all-cash offers. However, they offer only 30% to 70% of your home’s FMV. On the other hand, iBuyers’ offers are as high as 80%. But they have stricter eligibility criteria.
- For Sale By Owner: FSBO is another way to sell your house as is. It can help you save thousands of dollars in real estate commissions.
- Sell Your Home to House Flippers: House flippers are always looking to purchase properties. You can offload your home as-is to a flipper. They will then renovate and re-sell the house for a profit.
2. Make Minor Upgrades: Even though you’re not investing in major renovations, you should spend on minor upgrades. You can apply fresh paint to the walls, clean the house, repair windows and doors, and minimize clutter.
3. Prepare a Seller’s Disclosure: You must legally disclose anything defective in your house. For example, you must inform the buyer of any ceiling or wall cracks. Pre-listing inspections help avoid violating your seller disclosure laws. You can hire a professional home inspector to find unknown defects in the property.
Pros and Cons of an As-Is Home Sale
Just like any real estate transaction, selling your home as is has its pros and cons. Let’s look at them in detail:
Pros
- Tons of Savings: If you avoid expensive repairs, you save thousands of dollars in repair costs. You don’t have to pay for home staging and curb appeal improvements.
- Fast Execution: Repair projects are time-consuming. By selling as is, you can speed up your home sale.
- Easy Closing: Selling your home as is means less negotiation. The flipper or investor usually takes care of the required repairs. If the home sale clears in advance, you can consider the buyers' concession requests.
Cons
- Lower Price: Your as-is home sale might fetch a price 50% to 70% lower than its FMV. Cash buyers would ask for a heavy discount because they must bear the repair costs.
- Limited Opportunities: Some buyers are interested in move-in-ready homes. They won’t be interested in an as-is home sale, which may keep your home on the market for long.
- Financial Challenges to Buyers: Buyers can face challenges in obtaining a mortgage to buy an as-is home. FHA loans, VA loans, and many conventional mortgages usually do not allow financing for fixer-uppers.
Does Selling My Home As Is Make Sense?
Yes, it does if your prime motive is to sell your home fast. Spending thousands on renovations doesn't guarantee a windfall. Imagine the disappointment of completing repairs only to find they don't translate into a higher selling price. You should consider an as-is home sale when demand for housing increases and supply falls short.
