Many people believe that selling an as-is house means that the house is in bad condition. But that’s not always the case. Most of the time, people that sell their home ‘as is’ are trying to avoid the stress of selling a property through real estate agents.
However, not everyone selling a house as-is sells the property in an ‘ok’ condition. Selling a home ‘as is’ is a legal term that means you’re not making any repairs on the house or providing any warranties to the buyer – the buyer gets the property in its current state.
What’s the Meaning of Selling a House As-Is?
To sell an as-is house means that you’re selling that property in its current condition with an understanding that you’ll make no repairs on the property. And issues that the buyer discovers during the inspection will not be repaired by the seller.
In a word, the house buyer will get the property with all its issues and faults. You’ll also want to be aware that the buyer is obligated to sign paperwork indicating that they understand the purchase terms.
What Selling a House As-Is Doesn’t Mean?
There’s a general misconception that homeowners are relieved from the obligations regarding a house sale when selling as-is. The majority of homeowners believe that they can list a property for whatever price suits them without discussing the issues with the property. But that’s not the case.
Homeowners selling a property as-is would want to honor their legal obligation to honestly answer questions regarding the house’s existing problems and current condition. And you’ll want to do this in line with the rules of whatever state the property is located in.
Meanwhile, in some states like Massachusetts, homeowners don’t have to disclose defects; however, they’ll have to answer questions regarding the current state of the property honestly. Keep in mind that intentionally hiding essential information from the buyer can put you in line for legal problems.
Now that you know the rudiments of selling a house as-is, you might wonder what the pros and cons of selling a house as-is are. Well, you’re in the right place. This article focuses on discussing the advantages and disadvantages of getting cash for homes.
Pros of Selling a House As-Is
Zero Repair Costs
One of the primary reasons many people prefer selling their house ‘as is’ is to avoid the costs of repairs. It’s advisable to invest a fair amount into repairing a property before putting it up for sale. However, many people doubt their chances of recouping the repair costs on the sale. So, they settle for selling a fixer-upper house.
You’ll also want to be aware that a house must be habitable before the buyer can obtain a loan on the property. So, if you’re planning to sell a house as-is, the property must be in good condition, at least.
If you’re the type that can’t deal with any problem regarding house sales, you’ll want to opt for selling your property as-is. For example, if you have health issues, you’ll probably not want to add any more problems to those you’re already facing.
However, it’d help if you spoke with an experienced real estate agent to discuss your options before you decide on selling your house as-is.
Quick Way to Get Liquid Cash
Many people decide to sell their house as-is when faced with some challenging financial situations. And that’s because it appears to be the fastest means to get some liquid cash. Cash is always required for many reasons like clearing medical bills, purchasing another property, or for unforeseen circumstances.
Whatever your reason is for selling the property, it’d be best if you took the time to analyze the pros and cons of selling a house as-is. If the odds are in your favor, you can proceed. If not, you’ll want to reconsider your decision.
Faster Selling Process
Selling a house as is by the owner lifts a lot of responsibilities off the homeowner. If you feel you’re not patient enough for pre-sale inspections, repairs, renovations, open houses, and other preparatory processes involved in selling a property, selling your house as-is might be the best option as the process is much faster.
Meanwhile, some companies specialize in purchasing and selling as-is properties and homes in need of repairs. If you’ll feel the need to get professional help, consider visiting https://propertyescape.net/blog/sell-a-house-that-needs-repairs/ to get started.
Cons of Selling Your Home As-Is
The most significant drawback of selling your house ‘as-is’ is the low price offers you’ll get from potential buyers. Since most of the potential buyers will assume that you’re in dire need of cash, they’ll most likely make ridiculous offers for the house.
And the longer your house sits on the market, the lower the price offers become. So, you might be left with no choice but to dispose of your house at a price well below market value.
Finding a Befitting Price
Selecting the right price to sell your house can be challenging, but it might be even more complicated with an as-is sale. You wouldn’t want to list the property for a high price to avoid scaring away buyers, and listing the house for a low price can also have the same effect.
How does listing my house too low drive buyers away? If the actual market value of your house is $385,000 and you list it for $300,000, potential buyers may assume that the house has some serious issues, which may not be the case.
In that case, potential buyers might keep skipping your house because not everyone is ready to do extensive repairs on an as-is home. However, not every buyer will steer clear of your offer as well.
You should expect the real estate vulture because they will make even lower offers for your house. And this is an important reason why you’ll want to weigh the pros and cons of selling a house as-is before you opt for it.
Fixer-upper properties attract buyers ready for a project, but many other buyers won’t show interest in such a property. If the issues in your house are significant, the house’s condition might cripple the chances of getting financing. And this will drive away all but cash buyers.
So, it practically means your potential customers will be people who’re willing to do repairs and pay cash for your house. And such people are not many. Many people are looking for homes they can get financing for as they can’t afford the outright payment.
Selling your house as-is isn’t the best option, but it can be an easy option for many. While you should be able to dispose of your home without stressing about organizing and paying for repairs, it may not be the smooth experience you were expecting. So, if you’re going to sell your house as-is, it’d be best to understand your decision’s processes, advantages, and downside or better still, sell to a reputable home buying company.