Selling your home is a major undertaking that involves a significant investment of time and emotions. While you’ll want to do everything possible to maximize the return on your investment, sometimes it makes sense to sell your home “as is.”
An as-is sale means that the seller will not do anything to improve or repair the home for the buyer. In other words, it will transfer in the current condition. So, if the inspector finds something wrong, the buyer can address those issues after the close or can choose to walk away.
It’s perfectly legal to sell a home as-is, but sellers must disclose any known defects. If you’re in a seller’s market, you may have more leverage to use this strategy than if you were in a buyer’s market. But, depending on your situation, it may or may not be the best choice.
Pros of an For Sale “As Is”
Save Time and Money
When you sell a home as-is, you won’t have to deal with the time and expense involved with repairs and improvements. Some items, such as a new roof or HVAC system, can be costly, so this is a major benefit.
Since you don’t have to worry about items – minor or major – you can list your home for sale immediately, skip the professional staging, and move to accept offers much quicker.
Because you don’t have to schedule contractors and negotiate “fixes” back and forth with the buyer, selling a home as-is can be less stressful. Some sellers even choose to sell their home completely furnished to bypass having to pack or sell furnishing separately.
Cons of an “As Is” Sale
Possibly Lower Offers
Some buyers are tempted to make low-ball offers on as-is homes with the assumption there is something wrong. While not always reasonable, this is a reaction you should expect.
Less Potential Buyers
Some buyers are also scared off by this type of sale, having visions of hidden issues. But in a seller’s market, you’ll still get plenty of interest.
Deals Could Fall Through
There is always the potential that a buyer could back out of an as-is sale if they get cold feet or if an inspection reveals an issue that is too big for them to handle. Depending on your contract terms, the buyer might also lose their deposit.
Tips for Selling Your Home “As Is”
If you plan to sell your home as-is, here are several strategies to make your sale a success:
- Get a preliminary inspection report – You can show potential buyers that you aren’t hiding any major defects by getting a third-party inspection before you list your home for sale.
- Highlight your home’s positive aspects – Even if your home requires some minor repairs, highlight its positive aspects in the listing. Most buyers understand that you can’t change a home’s location, but you can fix a leaky faucet.
- Keep your emotions in check – Avoid getting offended by lowball offers or overly cautious buyers. Keep your expectations reasonable, and your home will sell.
If you’re thinking of selling your home “as is” or purchasing one that is listed in this fashion, we can help. The Lafayette Team’s real estate professionals have over 17 years of combined experience helping buyers and sellers achieve their goals. Contact us today for more information.