For Some Homeowners, The Time & Money To Cover The Cost Of Home Repairs And Renovations Just Isn’t There. Read More to Know How to Sell A House As-Is.
What Does It Mean To Sell A House “As-Is”?
Simply put, selling a house as-is means selling it in its current state — any repairs or renovations a buyer wants done become their responsibility to do and pay for after closing. The process of selling a house as-is involves a little extra paperwork (legal agreements to ensure the buyer understands the conditions of an as-is sale). What’s more, many (though not all) states also legally require people selling a house as-is to disclose any issues like structural defects, plumbing or electrical problems, mold, termites, or pest infestations, and external conditions like excessive road noise or legal issues affecting the property. Consequently, the process of selling a house as-is varies somewhat depending on the local legal requirements.
How To Sell A House As-Is
The steps for selling a house as-is are fairly straightforward:
- Arrange a pre-listing inspection to identify the different issues with the property.
- Obtain estimates for the cost of home repairs and renovations based on the inspection.
- Consider doing simple repairs. Many homeowners want to sell their home as-is because the cost of home repairs and renovations and the expected time to complete such repairs are too much for them. Nevertheless, doing minor quick, low-cost repairs can have a noticeable impact on how buyers respond to your home.
- Set a fair sale price that reflects the remaining cost of home repairs and renovations the property needs.
- When presenting your home and working with a potential buyer, be honest and flexible.
How Much Money Do You Lose Selling A House As-Is?
It’s certainly true that choosing to sell your house as-is will mean listing it for a lower selling price than you could have asked if the property was in good repair. It also means you’ll ultimately end up accepting a lower final offer than you would have had you agreed to make repairs. That’s because the price reduction isn’t just to cover the cost of home repairs and renovations, but also carries something of an inconvenience cost to incentivize the buyer to take on a project when they could otherwise find something move-in ready.
Generally speaking, the anticipated discount associated with choosing to sell a house as-is is around $0.20-$0.25 per dollar on the good-repair market value. That is, you should expect to sell your home as-is for about 75%-80% of the market value.