Most of the time, selling your house means repairs, renovations, and countless hours making it look as good as possible. However, not all sellers have the time or money for extensive work when selling a house.
These homeowners will often sell their houses “As Is”. If you’re one of these, there are a few things you need to know before you start advertising your home for sale. It’s essential to understand what it means, as well as the legal requirements and implications.
Here are a few things you need to look out for before listing your house for sale, as is.
What Does “As Is” Mean?
Buyers usually know that “As Is” means buying the house, faults, and all. You, the current homeowner, won’t be making any improvements. That said, there are legal outlines linked to the term. The full definition depends on your state, however, so make sure to check.
What Are the Downsides?
Selling a home as is can be difficult. Most buyers will immediately think that something’s incredibly wrong, that you’re desperate, or that they can make ridiculously low offers. Usually, they’d be right.
If you want to attract interest, you’ll have to be willing to drop the price quite a bit. You might also have to lose out on some profit. For the most part, you’ll be marketing to flippers and people who want fixer-uppers. That’s a small market, though, so be prepared for a wait.
How To List Your House As Is
When you’re selling your home as is, there are a few things you can do to draw more buyers, or just entice the right buyers. Here are a few top tips:
- You can avoid saying “As Is” in the initial listing. That will allow you to attract a broad range of buyers.
- Don’t be dishonest. Before you schedule any inspections, inform interested buyers that the house is available as is only. You can also tell them about any faults they’ll encounter during their visit.
- When you do schedule an inspection, let the buyer know that there will be no negotiation for repairs. The house is sold as it’s presented only, and that means flaws and all.
If you’re selling a house as is, strategies & examples can really help you out, so don’t be afraid of looking or asking for advice.
What You Need to Disclose When Selling Your Home As Is
Whether you’re selling as the owner or using an estate agency, there are disclosure laws that you need to obey. While it might discourage some potential buyers, it’s imperative to practice full disclosure. If you don’t, the legal consequences might cost you more than you made on the sale of the house.
Here’s what you absolutely must, as required by law, disclose when selling a property as is:
- Structural defects, such as cracks in the walls or foundations
- Any mold in the home, especially toxic varieties
- Termites and associated damage
- Leaks, whether in the roof or plumbing
- Electrical issues and faults
- Any current or previous title disputes and legal matters
There may be other requirements, so be sure to check the local laws in your state. You might even be required to disclose paranormal activity or if you’ve had an exorcism done!
If you don’t be upfront about any of the above to prospective buyers, you can end up with an incredibly costly lawsuit on your hands. Your realtor may have a Seller’s Statement of Property Condition, which makes the process a little easier. Fill this in as thoroughly as possible, and you should be fine.
Selling your house “As Is” might seem like the easier option, especially if you’re strained for cash and looking for a quick-sell. It might even be the best option for you, and there are many benefits to selling this way. That said, there are also a few things you should note.
Always check for the legal definition in your state. You should also know the downsides of selling this way, as well as what the requirements are. Finally, just because you’re selling as is, it doesn’t mean you can’t get creative. Target the right market, and you’ll have your house sold to a happy and satisfied buyer in no time.