Are you thinking to sell your home as-is? Without repairing the bathroom tank? Or fixing the leaking roof or maybe getting the cracked windows straight? If yes, you may need to rethink your decision as without spending a dime on such a worn out house, you will not be getting much out of it. It will be like the clearance sale that most brands offer to get rid of the old stock. If you are looking to sell your home fast, only then it can be a good catch, but if you are not, then you should think of spending some money on it.
Let’s briefly explore what does selling a house as-is mean and how you can prepare your home for sell by doing some repair service.
What does selling a home as-is mean?
It means that the property is a fixer-upper that will not be enhanced or repaired before it is sold. It translates into, “what you see is what you get.” Such houses are priced and marketed for the sellers to get it sold without putting in some extra money promptly. If you are looking to sell your home in Texas, now is a good time to put your sapped house on the market.
Pros of selling a house as-is
1. Saves you the time
The best thing about it is that you do not have to wait for months for the repairs to be done and then sell it. Since these houses do not cost much, the buyers are most likely to pay in cash, so the closing process will also speed up.
It does not only save the time of both the parties but it makes the overall selling process much convenient as well. As- is sell of the home takes a lot of responsibility off the seller. If you think, taking on pre-sale inspections, staging, renovations and repairs and open houses are a lot for you then it is better to sell your house as- is.
2. Saves you some bucks too
There is no denying to the fact that making a haphazard house look appealing is pretty taxing and expensive as well, with almost no return. You will not have to spend thousands to make major improvements, which can cost almost $150/ square foot. Only renovating a kitchen would cost you almost $15,000. Are you willing to take the risk of going into debt to fix your house? I do not think it’s worth it.
When you make it clear that you are selling the home as is, then it is generally understood that you will not be making any repairs which translates into saving some bucks. If your house needs new water heater, roof or other expenses that you cannot afford then it is not your headache anymore. Even though, while you sell your home you will not be getting much for your house as the repairing costs will drive down the sale price, but you still can profit from the sale.
3. Seller’s Market
You can only sell your home as is if you are in the seller’ market, on the other hand, during the buyer’s market season you are less likely to go with the process. The high priced, competitive market makes buying a fixer upper a more viable option to the buyers. However, selling a home without making any repairs will reduce the price and it will not make as big of an impact when affordable homes are hard to find.
Cons of selling a house as-is
You cannot expect the pros without cons; just like there are a few benefits of selling a house as-is, there are a few disadvantages. So let’s jump into it and see how that can be a bad idea.
1. Less offers
The low price of your house may attract hundreds of buyers, but you may end up disappointed seeing them run away from the house because of its murky and broken condition. Moreover, some lenders do not even approve the buyers for a mortgage on the fixer-upper. It might restrict your potential buyers to real estate investors and house-flippers.
2. Lower profit
You cannot expect to make a profit in thousands if you plan to sell your home as-is. The potential buyers out in the market want to beat you up on the rate to compensate for the repairing cost, so you need to keep your hopes low. On average, the recent move-in ready homes are sold for almost $250,000 while the upper fixer houses are sold for $200,000. So, do not expect to be paid in gold while you are selling your house as-is.
3. Distrust of buyer
Buyers find it really hard to trust the seller of as-is house, the sellers must disclose the problems but buyers still expect some hidden issues in the house therefore they reduce the prices. Getting through this distrust stage is possible however, it can be a huge barrier.