The Truth About Selling a Home “As Is”
Selling a home “as is” is often viewed as a convenient option for homeowners who are looking to move on from a particular property. In some cases, the seller wants to transact quickly or may not have the financial resources available to make the repairs.
Selling a home as is means the property will be sold in its current state — no matter how good or bad the condition may be. In other words, the transaction takes place with the understanding that the seller won’t be on the hook for any repairs.
Many believe selling a home “as is” is the easiest way to move on from a property, but that’s usually not the case.
Common Misconceptions About Selling A Property “As Is”
Selling a property as is does not mean the homeowner is excused from having to reveal facts about the property, disclose potential problems, or honestly answer a buyer’s questions. States have different rules about which details relating to a home’s condition a seller must disclose to a buyer; however, in most cases, it’s important to disclose what you know.
Additionally, real estate agents are often required to disclose known details about a home’s condition including:
- Known structural defects
- The presence of mold
- Significant roofing issues
- The radon levels in the home are higher than the acceptable EPA limit
- Electric or plumbing problems
- Termite damage
Many buyers may also be under the impression that they’ll have the opportunity to negotiate repairs following the home inspection. However, if you don’t plan on committing to any home maintenance, it’s important to let the buyer know upfront.
Selling A Home As Is May Impact Buyer’s Perception
An “as is” home sale is almost always perceived negatively by potential buyers, so you may be limiting your market size to investors and home flippers. Additionally, it can signal to buyers that you are desperate to sell the home, which means you’ll likely lose negotiating leverage. Buyers that are interested are more likely to try to lowball your sale price. As a result, listing a home as is can prove challenging for both sellers and real estate agents.
Reasons Why You Might Want to Sell A Home As Is
While many would recommend avoiding an “as is” home sale if possible, there are some valid reasons why sellers may want to consider it:
- A seller can’t afford to make the repair costs.
- A seller is experiencing financial difficulties and needs to close quickly.
- A seller is ill or does not want to go through the stress of selling a home.
Listing a home can require work and dedication on behalf of a determined seller, but if you are experiencing a situation where you need to list your home “as is”, it’s a good idea to weigh the pros and cons.
Every home sale is unique and presents its own set of challenges. Contact me and we can discuss the best way to determine the right strategy for your property.
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