When home sellers offer their home “as is,” that means the home will be sold in its current state. No repairs, no updates, nothing. What you see is what you get. This can mean different things to both the seller and the potential buyer.
When a prospective buyer chooses to purchase a home as is, he or she is accepting responsibility for any of the house’s current issues.
Before the sale can take place, the house buyer must sign an agreement stating they are requesting to purchase the home as it is on the date the offer is submitted.
When it comes to selling your home as is, you’ll spend less time, work, and investment in preparation efforts for the sale. However, one cost of selling an “as is” home may not be monetary. Instead, the price will come in the currency of disclosure.
If you’re selling a home as is, you must be fully transparent about the home’s condition and issues to any cash buyers. In fact, you are legally obligated to answer any questions regarding existing problems and necessary repairs with your home honestly.
That includes (but is not limited to):
Another reason why honesty is the best policy? Home sellers or real estate agents who misrepresent the home or refuse to disclose appropriate information could face fines and legal penalties.
If you have questions about which of the house’s features are considered “quirks” and which are issues you need to disclose, your best resource is your real estate agent. But are you wondering how to find a good real estate agent that will be there every step of the way?
When it comes to selling a house as is, the agents at Berkshire Hathaway HomeServices California Properties are practiced professionals. Our trusted California REALTORS® can go over the legal disclosure requirements of your area and help you address them with potential buyers.
Selling a home “as is” can be a sensible option for a home seller for a variety of reasons. You may have just accepted a job in a new city that starts immediately, or you just bought a new house at an incredible price and want to stop paying double mortgages ASAP. Or, you might have inherited a new house and are looking to sell as painlessly as possible.
Whatever the situation, selling a house as is can certainly simplify the home-selling process for a home seller. But just because you’re listing the home as is, doesn’t mean you should lose out on additional gains. Just by learning a few home selling strategies or getting expertise from our California real estate agents for selling a house as is, you can get even more return on your sale.
Read on for a complete guide to as-is home selling.
When you decide to put your home on the real estate market, even the smallest decisions can make a big impact on your financial future. Before choosing whether you want to sell your house as is, familiarize yourself with the pros and cons.
Selling a home as is can streamline the selling process. A few benefits of this practice include:
Budget-friendly – If you decide to sell your house as is, you won’t have to invest in home improvement projects to increase its appeal. Other than closing costs, taxes, and fees, your selling expenses will be minimal.
Simpler preparation process – Many home sellers invest significant time and money in preparing their house for the market. But when you list your house as is, you can skip weeks (even months) of home improvement projects (as well as the associated costs).
Quicker sale – Typically “as is” homes sell faster in a cash buyer’s market. Cash buyers looking to “fix-up” an as is home will snatch it up as a quick sale, sometimes as a cash offer, and immediately begin the renovation.
Location increasing value – The old adage is true when it comes to real estate for a real estate investor and homeowner alike—it’s all about location, location, location. If your house is in a high-demand area, your as-is home may sell for far above its original value and get a cash offer even if it needs renovation.
If your house is in a high-demand area, your as-is home may sell for far above its original value even if it needs renovation.
Just like any major home selling decision, there are notable drawbacks to selling your home as is. These potential disadvantages of a sale by owner setup include:
Potentially reduced ROI – Homes are an investment that typically appreciates in value—but after years of life’s daily wear and tear, your home may need a sprucing to regain that value. That’s why many home sellers invest in upgrading appliances and making cosmetic changes before listing their property.
If you sell your home as is, you may not see a significant return on your investment. In fact, you may break even or even sell the home for less than what you originally paid.
Smaller market – Usually, “as is” homes are scooped up pretty quickly from fixer-upper buyers. However, that market is considerably smaller than the typical home buyer market. A smaller market can mean less room for negotiations to go in your favor.
Lower selling point – It’s hard to answer “how much do you lose when you sell the home as is?” Real estate professionals will point out that updates to your home can significantly improve your price point. Forgoing that option might mean leaving money on the table.
Before you decide whether to sell a home as is, try seeking expert advice from a real estate professional. At California Properties, our real estate agents live and breathe today’s ever-changing housing and real estate market. Their expert perspectives may catch unique selling opportunities for your as-is home.
Our experienced agents can guide you to your most profitable outcome, all while streamlining the selling process. And, if you and your agent do decide that upgrades are needed before you sell, they can give you exclusive access to our PINNACLE home services program, meaning you can make upgrades or stage your home with no money out of pocket until your home sells.*
You’ve considered the pros, pondered the cons, and spoken to your real estate agent. You’ve even gone over the fees for selling a house and decided to sell your house as is. All that’s left to do is… well, sell it!
Here are the steps to selling a home as is:
Before your as-is home hits the closed or open market, you’ll need a better idea of what the home is worth. Your REALTOR® can help you estimate a good asking price, but you should check a few things off of your “to do” list before committing to a final number:
Secure a value estimate – Whether you’re selling a home as is or completely renovating a house before listing, you’ll need to get a value estimate. A value estimate establishes a baseline for your asking price.
You can do this in a number of ways:
Pre-listing inspection – Disclosing the house’s condition is crucial to the selling process. But what if there are hidden damages and defects in your home that you don’t know about? Arrange for a pre-listing inspection to gain a fuller understanding of your home’s issues.
A pre-listing inspection may even offer some legal assurance should an unexpected issue come up with the home after it’s sold. Speak to your real estate agent about the many ways a pre-listing inspection can cover you during the selling process.
Estimated costs for repairs – Working with your home inspector and agent, make a list of all the things that need fixing in your home during a home inspection. Once you have a comprehensive list, talk to a contractor or other specialist to estimate the repair costs. These expenses will be factored into the price estimate.
When diving into the world of values and estimates, it’s difficult to keep track of what’s worth what. That’s why you should work with a reputable agent who can help you determine a fair price that’s appealing to both you and a potential cash buyer. You can rely on California Properties’ experienced agents to help you gauge your home’s value, the market, and factor in repair expenses into your final offer and list price.
A pre-listing inspection may offer some legal assurance should an unexpected issue come up with the home after it’s sold.
Home preparations can improve the “sell-ability” of any home. But preparations don’t always require a contractor or a fleet of updated appliances. A few simple preparation projects can encourage buyers to notice the diamond in the rough.
So even if the entire point of selling your home “as is” means no hands-on effort, you can find easy ways to polish up your property without major repairs. In fact, a few low-investment preparation efforts can boost your home’s value. Best yet? They only take you a day or two to complete.
Here are just a few preparations you can try:
This one’s a no-brainer. Possible buyers have an easier job discovering your home’s potential when they aren’t distracted by kitchen grease stains or dusty counters. You can hire a cleaning service or grab a mop and bucket and start scrubbing.
You can also try:
Clutter can create a cramped, inhospitable space. Spend a day going room-by-room in the home to clear out excess clutter. Just a few hours of tidying can make a space feel larger, ceilings higher, and even highlight the building’s structure. It makes it easier for potential home buyers to picture their future in your house.
If you’re wondering what to do with excess clutter, you can:
If the weather is nice in your neighborhood, why not spend a few hours polishing up your home’s curb appeal? A few floral touches can give any house a welcoming look. Additionally, other low effort and low cash preparation tasks can include:
When you’ve found a reasonable price and you’ve done a bit of sprucing up, you’ll be ready to list your home. Your real estate agent will list your house across multiple home-selling platforms to help garner interest.
A few key details can help your as-is home listing stand out among its neighbors. Start with the essential information, including:
Your home’s distinctive features can help create a more appealing listing. Work with your real estate agent to bring your listing to life with details like:
Neighborhood – Whether urban, rural, or suburban, your neighborhood can add value to your listing. Is your neighborhood famous for its holiday lights? Are you nearby a bustling city center? Is there a Michelin-starred cafe around the corner? You can also include additional characteristics like:
Unique features – Every home has its own individual characteristics. Add those features into your listing description to catch the eyes of potential buyers. Who knows? Your home’s stunning hardwood floors, outdoor entertainment area, or vintage crown molding might be exactly what a buyer is looking for.
Photos – Put your house in its best light with strategic photos—and don’t just use the camera on your smartphone. The higher quality the photo, the more polished your home will look to prospective buyers. A savvy real estate agent will secure a professional home photographer to showcase the best qualities of the house.
After listing your home and showing it to potential buyers, you will start to receive offers. However, those offers may be lower than you had hoped. That’s because when buyers see “as is” in a home’s listing, they tend to lowball your asking price.
While it’s important to be flexible in negotiations, rely on an experienced negotiator who can give you the best deal for your as-is home sale. To that end, our real estate agents are experienced negotiators and can help you navigate the tricky waters of purchase offers.
Selling your home as is can take a load off your mind and help you move onto the next chapter of your life. Having a trusted advisor through every decision and step can make all the difference in the selling process. Wherever you’re located, the real estate agents at Berkshire Hathaway HomeServices California Properties can help you find your perfect offer.
Meet us today and let’s talk about how to sell your home as is!
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April 20th, 2023 at 3:30 pm