Selling a house can be overwhelming and stressful, especially when you factor in repairs, renovations, and endless showings to potential buyers. But what if there was a way to skip all of that and sell your house without making any repairs or renovations? That’s where selling a home “as-is” comes in.
Selling a house as-is means that you are not responsible for making any repairs or improvements to the property before the sale. But is selling a home as-is the right choice for you?
To find out, let’s dive deep into the ins and outs of selling a house as-is.
What Does It Mean to Sell A House As-Is?
Listing a property as-is means that the seller is selling the house in its current condition and is unwilling to make any repairs or renovations before the sale. In other words, the buyer is tasked with shouldering the responsibility for any repairs or improvements that need to be made.
Selling a house as-is is often seen as a way to simplify the selling process and avoid the hassle and expense of making repairs or upgrades. Nonetheless, this also means a lower sale price and a limited pool of potential buyers.
When it comes to the legal aspects, selling a house as-is does not necessarily mean that the seller is off the hook for disclosing any known issues with the property. Instead, sellers must be upfront about any known defects or problems with the property.
The Pros and Cons Of Selling A House As-Is
- Less Stressful: Selling a house the traditional way involves making repairs, staging the property, dealing with open houses, and making upgrades, if necessary. All these tasks are time-consuming and stressful. By selling a home as-is, you can avoid many of these tasks and focus on other aspects of your life.
- Saves Time: When selling a house conventionally, you must spend weeks or months making repairs and preparing the property for sale. This can be time-consuming, especially if you have a busy schedule. When you sell as-is, you avoid this step altogether and slide on to the next chapter of your life.
- Lower Repair Costs: When you sell a house as-is, you don’t have to worry about making any repairs or renovations. This means that you save a lot of money on repair costs, which can be a significant benefit for sellers on a tight budget.
- Lower Sale Price: One of the most significant drawbacks of selling a house as-is is that it may sell for a lower price than if it were in better condition. Buyers are likely to factor in the cost of repairs and renovations when making an offer, which can lead to a lower sale price.
- Limited Market: Another downside is the limited pool of potential buyers. Buyers looking for move-in ready homes may not be interested in a property that needs a lot of work. This makes it harder to sell the property quickly.
- Unpredictable Closing: Because buyers are responsible for any repairs or renovations, they may discover unexpected issues during the inspection process that could delay or even derail the sale.
How Much Money Would You Lose Selling Your House As-Is?
Most buyers are looking for move-in-ready homes where they can simply unpack and start living. So, if your house needs significant repairs or renovations, you may only attract buyers willing to take on those tasks themselves, which can significantly decrease your home’s value.
Buyers will factor in the cost of repairs and renovations when making an offer on your home. For instance, if your house needs a new roof, a buyer might offer $20,000 less than your asking price to account for that expense.
So, how much you can realistically expect to lose by selling a house as-is, depends on the extent of the repairs needed and the current state of the real estate market in your area. For example, in a seller’s market, where demand is high, and inventory is low, you might not lose as much as you would in a buyer’s market. But on average, selling a house as-is can cost you anywhere from 10-20% of your home’s potential value.
Situations When Selling a House As-Is is the Best Option
Selling a house as-is isn’t always the right choice, but there are certain situations when it might be the best option for you. Here are a few scenarios where selling a house as-is makes sense:
- You Can’t Afford to Make Repairs: If you cannot pay for repairs or upgrades, selling your house as-is might be ideal. This way, you don’t have to worry about fixing any issues and can avoid the added expense of repairs.
- You Need to Sell Quickly: Relocating for work or staying close to a severely ill family member might make you want to sell your house as quickly as possible. By selling a home as-is, you can avoid the time and expense of making repairs, and you’ll be able to close the sale faster.
- You Are Dealing with A Slow Market: Selling a property in a slow real estate market takes a lot of work. Even if you invest more money into repairs or upgrades, you can never be sure about getting it back as soon as you want to. In such a scenario, selling as-is can be the best option.
Should You Sell Your House As-Is?
Selling as-is can be less stressful, save time, and lower repair costs, but it also leads to a lower sale price, a limited market, and an unpredictable closing. So, it is important to carefully consider your situation, including your budget, timeline, and the condition of your property, before deciding whether to sell as-is.
If you decide to sell your house as-is, consider working with a real estate agent experienced with this type of sale. They will help you price the property appropriately, navigate the inspection process, and find buyers willing to take on a fixer-upper.
Contact Jackie Ruden Realty Team
Give us a call today at (435) 272-7710 to set up a time to discuss your current and future real estate goals in regards to buying a home or buying a property in trust. We look forward to working with you to make your goals a reality.