There’s a lot to think about when selling a house. Most importantly, how do you choose a real estate agent for handling the transaction? And what types of improvement projects should you take on before putting your home on the market?
The reality is that the process of selling a house requires extensive knowledge, preparation, execution, and flexibility. Yet many sellers don’t have time to update their kitchen, renovate a bathroom, or finish their basement. These folks would rather list their property in its current state and leave any repairs or upgrades for the buyer.
Here’s what you need to know about selling a house as is.
What it means to sell a house as is
There’s nothing complicated about selling a house as is. Homeowners who go this route have no intention of sprucing up their place beforehand. They might be in a rush to sell or would prefer not to spend any money on renovations.
As you might expect, real estate agents use a different approach when selling a home as is. They’re almost sure to price it lower than similar properties to get it sold quickly. Realtors in these scenarios typically look to make a deal with the first interested buyer instead of starting a bidding war.
Advantages of selling a house as is
Think about your home for a moment. Is it older and in need of costly repairs such as electrical, plumbing, or structural work? The last thing you may want to do is contact multiple contractors, coordinate schedules, and possibly drag out the sale.
Then there’s the likelihood of contingencies. Say your agent lists your home at market value and begins organizing showings. Even if someone has a legitimate interest, their realtor is sure to come up with at least several contingencies.
So what’s a contingency in real estate? Well, a buyer’s offer might be contingent upon you fixing a mold issue or replacing the carpet upstairs. If you agree to the contingencies and decide not to hold up your end of the bargain, the deal falls through, and you’re back to square one.
Selling a house as is keeps you from having to bend over backward for buyers. You can choose whether to accept the initial offer or wait and see if you receive a better one. Either way, you’ll probably enjoy a less stressful experience as a seller.
It’s common for today’s sellers to spend thousands of dollars on home improvements. Some of these people pull funds from their savings account to cover the cost, while others finance the expenses. Without the right plan in place, you risk breaking the bank and putting yourself in a difficult financial situation.
Don’t make the mistake of draining your emergency funds or maxing out credit cards to pay for home repairs. Sure, you might recoup some of the costs down the road. But the safer bet could be to sell your house as is and avoid spending money you may not have.
Disadvantages of selling a house as is
Fewer interested buyers
Even in the seller’s market that we’re currently in, most buyers favor move-in ready homes. There are folks out there who won’t consider an as-is residence because it scares them. In turn, they might limit their search to new builds or recently updated homes.
Real estate investors are the ideal buyers for a fixer-upper. They understand the home buying process, and they have no issue purchasing a place that needs work.
Be prepared to negotiate if you’re planning to sell your home as is. Interested buyers won’t care about the memories you made or the number of years you’ve spent in the house. They’ll go back and forth with your agent to pay the least amount possible.
That’s why it’s critical to have thick skin in this scenario. Talk to your agent about how to handle lowball offers. And remember that selling your property in its current state could turn out to be one of the best financial decisions you make.
Rely on a trusted real estate agent
At American Home Agents, we have years of experience selling as-is homes in Denver. We’re also well-versed when it comes to quick sales. You can count on us to be a valuable resource as you navigate this process.
People sell their homes for a variety of reasons. If you’re at a time where selling your home can help you achieve your financial goals, we’re here to help. Plus, we know what homebuyers want in 2021.
Contact American Home Agents at (303) 695-5900.