Selling a house in its current condition, regardless of its state, means different things to people. For one, an as-is sale means a stress-free exit of your property, where you only need to pack, surrender the keys, and leave it in whatever condition it's currently in. While the fixer-upper market has been convenient for such a time, this selling approach comes with its disadvantages that should be taken into consideration.
This article is in no means to discourage you from doing this business. However, it is a good idea to know what you are getting into if you sell your house for cash, especially if you plan on leaving it as it is. Here are some points to consider should you sell your home.
Understanding Fixer-upper Homes
Selling a home and listing it under "as is" does not mean that the house is in an unfixable condition. This is a legal term that means the current owner is not interested in making renovations and issue warranties on a home they plan to sell.
Buyers get the purchased house as it is. And while they may request for more repairs before making the sale, sellers always have the right to refuse.
Pre-sale Home Inspection
Setting up for a pre-sale home inspection may be optional. You choose to get this first if you are not confident in setting up a fair price. Getting a pre-sale inspection reveals the current status of your home before listing it as an "as is." Identifying structural defects and mechanical issues are a part of your selling point.
This process may cost you a few hundred dollars. However, this will allow you to make repairs as much as you can before selling the house. By the time the buyer comes for a negotiation, you can disclose the recent restorations made and leave potential buyers more considerable savings on the renovation.
This ultimately helps you get the deal faster and strike a good relationship with your potential clients.
Disclosure Agreements Under Law
As a realtor or a seller, it is understandable that you want to present your properties in a way that you can quickly sell your house for cash. However, you are required to disclose anything and everything that is asked about your property. That means it's history, current damages, and unnoticeable flaws.
This is no rule of thumb, but there is a legal agreement that you should follow. The transaction is mandated by the Consumer Protection Act, which is sometimes referred to as Chapter 93A. This law states that you are legally required to honestly answer all questions and provide insight into a house’s damages and issues, even if it means discouraging the buyers from making the transaction.
If you are planning to sell a home as-is, this is an essential requirement that you must adhere and follow. Even realtors and professionals in this field are obligated to follow this law.
Buyers’ Negative Perception
The moment you list your home as is, buyers would almost instantly make negative assumptions. They may still be open for transactions, although you can't keep them from thinking that something is wrong with your property. It’s bad enough that you can't repair the property’s issues since it can rack up quite the bill.
This perception can cause buyers to haggle for lower prices. When this happens, be open-minded about settling deals lower than expected or lower than the original investment you made on the house.
Convincing Your Buyers that the House is Worth It
You or your agent might face issues convincing potential buyers that your property has a fair price on it. With negative impressions and visible damages, you must break through these barriers and demonstrate why purchasing your home is a good deal.
Take heed that there might be issues on assurance and trust on buyers. Remember that part of the transaction is being honest with the damages and removing the impression that you are hiding something from them.
No Desire to Invest and Renovate
Not all sellers invest in renovations or increase the value of their properties. Whether financial or emotional, some sellers would prefer to present their homes as-is and in a literal sense.
This affliction ensures that your home will be sold at a lower price on the market than expected. With the struggle of getting the right buyer, you might regret listing your house "as is."
If you don't plan to spend a dollar with these renovations, you should at least be willing to entertain potential buyers and convince them to buy your house.
Takeaway
Planning to sell old and dilapidated homes comes with challenges that you have to face, along with the negative impression it makes. Buyers will haggle and negotiate for lower prices much lower than what you expected. Hence, it is vital to keep an open-minded approach with these scenarios. Offer honesty about the current state of your home and maintain a good relationship with your clients.
