Depending on individual circumstances, moving to a new place can be an exciting yet stressful experience in a person’s life. Sometimes, personal desires compel a move. Others might agree to relocate because of a job transfer or promotion at work. There are many reasons why people decide to put their homes on the market for sale. If you’re considering it, there are several questions to ask yourself. One such question is: Should you sell your home as is or open the door to negotiations?
It’s important to understand exactly what selling a home ”as is” means in the real estate industry. It basically means that a seller will not be making any repairs or improvements before closing. Also, it means that the seller will not cover any expenses for the same on behalf of a buyer. Of course, the average buyer often tries to negotiate a price reduction or, at least, get the seller to agree to pay for repairs. This is known as a contingency, and it is quite common. So, if it’s so common, is it ever a good idea to sell your home as is?
You can sell your home as is if it is old and in disrepair
There’s a big difference between a relatively new home needing a few minor repairs and an old house that has aged well past that point. If your house needs major repairs or complete renovation, it might just be better to sell your home as is. Full disclosure is required. This means that you must inform prospective buyers of structural issues or other material defects. Each state has its own laws regarding selling disclosures. It’s imperative that you are aware of and understand the laws of the state in which a house you are selling is located. In some states, you can be held liable for not informing a buyer of certain information.
Time is another good reason to sell your home as is
If time is of the essence in your particular situation, it might be best to sell your home as is. Repairs (and negotiations) often take a lot of time. Maybe you don’t have any to spare, and you want to close a sale as swiftly as possible. An as-is sale might be the way to go. Otherwise, if you agree to make certain repairs before closing, you are at risk for delays. Consider how often contractors encounter challenges or obstacles on a project. Such issues often cause them to postpone an estimated date of completion. To avoid such problems, an as-is sale might be best.
Don’t go into debt to fix your house
Renovation experts say that remodeling a 100 square-foot room can cost upwards of $15,000 or more. If you have more than room that needs repairs, you might really want to take a step back and think things through very carefully. Whatever total cost you estimate for all needed repairs is likely going to be even greater. Many sellers wind up facing serious financial distress in these types of situations. It is always best to avoid going into debt for home repairs but especially so if you are moving and are buying another house, as well.
A house that is already paid for is a good candidate for an as-is sale
A fourth legitimate reason to sell your home as is might be that you do not have an outstanding mortgage on it. It might a home that came to you as an inheritance, or you just might have been fortunate enough to pay off your mortgage before deciding to sell. In either case, you might want to just walk away with a profit, rather than negotiate contingency terms to make repairs, updates or renovations.
It is helpful to consult with an experienced listing agent
Some people frown upon working with real estate agents to sell a home because they don’t want to pay a commission. However, working alongside an experienced sales agent is beneficial in many ways. For instance, an agent can help you determine a fair and competitive list price for your home. Getting the price right, from the start, makes it less likely that you will have to reduce the price at some point. A house that is priced right when it’s listed probably won’t stay on the market long, if it is in a prime location. An experienced agent can also assess your situation and help you explore all options, including whether you might want to sell your home as is. A listing agent has your interests in mind and wants to help you secure a sale that fits your needs and ultimate home-selling goals.
This post will hopefully give you food for thought as you consider whether or not to sell your home as is. You might need some more tips on how to avoid big mistakes that many sellers make. If so, you’ll want to read this article from our archives!