Selling A House As-is: The Pros and Cons

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Selling a House As Is
Selling a House As Is

For many homeowners, selling their home in pristine condition is simply not an option. Whether you are facing a foreclosure situation, a sudden work-related move, or any number of other situations, investing the time and money necessary to update your home to prepare it for the market may not be an option.

If you are in a position that requires you to sell your home quickly or are dealing with a property with too many necessary updates and fixes for your time and budget, you may be considering placing your home on the market “as-is”. While selling your home in an “as-is” condition is possible, this process requires that you complete a bit more preparation beforehand, and prepare yourself for the expectation that your final sale may be lower than expected. 

In this article, we will break down an “as-is” sale, as well as the pros and cons of this type of real estate path. 

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What Does It Mean to Sell a House 'As-Is'?

When you place your home on the market in an “As-Is” state, you are telling potential buyers that they are purchasing a property as it currently stands – with the unique characteristics and flaws together. This process takes away the ability for a potential buyer to ask for any pre-purchase updates or upgrades, as they are committing to buy the house in the state they see it. 

If anything should come up after the purchase, the buyer is responsible for taking care of repairs and updates, as the contract will usually remove responsibility from the seller once they have disclosed any current issues. 

There are several pros and cons of selling a home in an “as-is” condition, which can both help and hurt the sales process depending on what state the property is in when it goes to market. 

The Pros and Cons Of Selling Your Home “As-Is”

Pros

  • You Save Money On Fixes & Updates: You can avoid having to pay for any buyer-requested updates or changes that come up following the inspection period by selling as-is.
  • You Can Closer Faster Post-Offer: With little negotiations necessary for an as-is property, you can often close quickly on an as-is home – especially if you are selling the home to an investment property buyer. 
  • Freedom From A Lemon: If you are dealing with a home that has too many issues to remediate in your budget, or are facing potential foreclosure proceedings, an as-is sale may be the perfect solution.

Cons

  • Lower Profit: You will likely see a lower profit off the sale of an “as-is” listed home, as buyers know that they are going to face updates and fixes once they purchase the home. This reality will cause buyers to offer a lower price upfront to save money on fixes later. 
  • Fewer Offers: When a home is known to have issues or problems, it is almost guaranteed to see fewer offers. Going into the process of selling your home as-is with this in mind will help you avoid anxiety and fear when offers come in slowly.
  • Slower Sales Timeline: While you can often enjoy quicker closings with “as-is” home sales, you will likely face a longer overall sales period while you await offers to come in from potential buyers.

Some Renovations & Improvements For Updating a House

Just because you are selling your home in an “As-Is” condition doesn’t mean you can’t take some simple steps to increase the potential sales value. After completing a short personal audit of your home, take note of simple fixes that may add some value to your home or increase the curb appeal, such as:

  • Clean the entire home to give it a bit of extra life when showing the house to potential buyers. You can also hire a team to come in and complete some deep cleaning of the property.
  • Consider painting some spots in the house that scuffed or damaged with low-cost white paint, brightening the rooms, and helping the property look cleaner.
  • Powerwash and declutter your outdoor space, and consider adding plants to the property.
  • Replace any cracked windows, torn screens, or broken articles around the home to increase the comfort and safety of the home, and help your potential buyers see the property as a safe place to live or purchase.

Even if you are working on a limited budget, taking small steps to clean and update your home – even with DIY steps – can do wonders for helping increase the potential buyer’s first impression. You would be amazed at how far $100 can take your entire house! These small investments can make all the difference in the placing of an offer, as well as the size of the sales price!

Listing An As-Is Home

Once you have decided to put your home on the real estate market in an “as-is” conditional sale, it is time for you to list the property. 

When it comes to selling a home that may require a bit of repair or updating, it can be beneficial to work with a real estate professional who has experience selling homes in “as-is” condition. These professionals know the best language and selling tactics to use to ensure that your home isn’t marketed in a negative way that may reduce the interest in the property of the potential sales prices. 

An important aspect to keep in mind are the current market conditions. Depending on how the housing market in your area is at the time you put your home up for sale, you may find that the process moves faster or slower. With a market that is fluctuating, you may need to be strategic in determining the best time to place your home on the market.

Instead of marketing the home as an “as-is” purchase, many professionals will choose to follow a normal home sale process, allowing home offers to come in as normal – then working with interested buyers to explain what elements of the property make it an “as-is” property. 

 

One of the most important steps in listing your “as-is” home is to fully develop your list of disclosures. Typically, disclosures can be compiled by ordering a home inspection ahead of time, and seeking to uncover any issues that may arise prior to putting the home on the market.

While buyers shouldn’t be surprised to find out that elements of the home aren’t perfect when buying “as-is”, it is still vital to disclose as many details about the property as possible to avoid future issues with the sale. Not disclosing major issues with the home prior to the sale may put you in a legal bind – even when selling “as-is”. Here is a short list of some disclosures you will want to make sure are covered ahead of time:

  • Any evidence of a structural defect, like a significant crack in the foundation, that is visible or has been discovered through inspection.
  • The full description of any present or previous mold that has been found in the home.
  • Any past or present termite damage in the home.
  • A list of all roof issues, including leaks, damage, or missing materials.
  • Any major electrical issues that are present in the home’s wiring.
  • Any current or past title disputes or other legal issues that have come up with the property.

In most cases, your agent will have you place these disclosures in a Seller’s Statement of Property Condition – a document that lays out all of the current property issues with a description that protects you and the potential buyer from future problems. By completing this document to the best of your knowledge, you will save yourself potential time, money, and headache.

Once you have fully listed the disclosures and placed the property on the market, you will follow a similar process as with any other home sale. Keeping in mind that the buyers will likely have more questions regarding the property, you will need to prepare to offer increased detail on any issues or problems that arise during a home inspection. 

In some cases, you may be approached by a property investment company that is willing to take on the purchase of your home in an “as-is” condition with a cash offer. Many times, this may be the best avenue for homeowners to take if they are having trouble finding a buyer for their property. The Garnet Property Group is skilled in helping homeowners in Connecticut who are seeking to sell their home “as-is” receive competitive cash offers with guaranteed closings quickly.

 

Once you have decided to put your home on the real estate market in an “as-is” conditional sale, it is time for you to list the property. 

When it comes to selling a home that may require a bit of repair or updating, it can be beneficial to work with a real estate professional who has experience selling homes in “as-is” condition. These professionals know the best language and selling tactics to use to ensure that your home isn’t marketed in a negative way that may reduce the interest in the property of the potential sales prices. 

An important aspect to keep in mind are the current market conditions. Depending on how the housing market in your area is at the time you put your home up for sale, you may find that the process moves faster or slower. With a market that is fluctuating, you may need to be strategic in determining the best time to place your home on the market.

Instead of marketing the home as an “as-is” purchase, many professionals will choose to follow a normal home sale process, allowing home offers to come in as normal – then working with interested buyers to explain what elements of the property make it an “as-is” property. 

One of the most important steps in listing your “as-is” home is to fully develop your list of disclosures. Typically, disclosures can be compiled by ordering a home inspection ahead of time, and seeking to uncover any issues that may arise prior to putting the home on the market.

While buyers shouldn’t be surprised to find out that elements of the home aren’t perfect when buying “as-is”, it is still vital to disclose as many details about the property as possible to avoid future issues with the sale. Not disclosing major issues with the home prior to the sale may put you in a legal bind – even when selling “as-is”. Here is a short list of some disclosures you will want to make sure are covered ahead of time:

  • Any evidence of a structural defect, like a significant crack in the foundation, that is visible or has been discovered through inspection.
  • The full description of any present or previous mold that has been found in the home.
  • Any past or present termite damage in the home.
  • A list of all roof issues, including leaks, damage, or missing materials.
  • Any major electrical issues that are present in the home’s wiring.
  • Any current or past title disputes or other legal issues that have come up with the property.

In most cases, your agent will have you place these disclosures in a Seller’s Statement of Property Condition – a document that lays out all of the current property issues with a description that protects you and the potential buyer from future problems. By completing this document to the best of your knowledge, you will save yourself potential time, money, and headache.

Once you have fully listed the disclosures and placed the property on the market, you will follow a similar process as with any other home sale. Keeping in mind that the buyers will likely have more questions regarding the property, you will need to prepare to offer increased detail on any issues or problems that arise during a home inspection.

In some cases, you may be approached by a property investment company that is willing to take on the purchase of your home in an “as-is” condition with a cash offer. Many times, this may be the best avenue for homeowners to take if they are having trouble finding a buyer for their property. The Garnet Property Group is skilled in helping homeowners in Connecticut who are seeking to sell their home “as-is” receive competitive cash offers with guaranteed closings quickly.

Sell Your Home As-Is With Confidence

Selling your home in an as-is condition has been put in a negative light by many real estate companies. However, when you are faced with a difficult sale situation, selling your home as it currently is may be the best financial decision for you and your family. 

While there are risks involved with selling your home in an “as-is” listed condition, those possibilities shouldn’t scare you away from seeking to successfully sell your property. You will likely receive less money than you would if your home were in top condition or renovated, but if you find yourself in a situation that requires that you offload your property, taking a loss may be the best possibility. 

As we have seen above, there are a variety of ways that you can both list and successfully sell your home “as-is” – and make a great profit! If you live in the state of Connecticut and are considering selling your home “as-is”, then you should contact the Garnet Property Group today. Our team of skilled real estate professionals is experienced in working with clients who have sold their “as-is” properties and received competitive cash offers with fast closings. In most cases, you can receive a cash offer on your home in as little as 48 hours!

A member of our team is ready to work with you today to sell your “as-is” home quickly! 

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