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Tips For Selling A Home In As-Is Condition
Selling a home can present challenges throughout the process. Finding a ready, willing, and able buyer and passing inspections are just a couple of the challenges a homeowner can potentially face when selling their home.
What happens if a homeowner decides they want to sell their home in “as-is” condition, does it make it more difficult? The answer is that in most cases it does make the task of selling a home more difficult.
There are certain things that a homeowner who is thinking of selling their home in as-is condition needs to understand. If you’re thinking of selling your home in as-is condition, the most important thing to understand is that just because you say you’re selling your home in as-is condition does not mean a buyer will still make requests of you.
There are certain steps however that can be taken by a seller to increase the chance their home will truly be sold in as-is condition. Below is a guide on how to sell a home in as-is condition.
Why Do Homeowners Sell Their Homes In As-Is Condition?
A question that is often asked by buyers who are interested in as-is homes is why the seller is selling their home in as-is condition. There are tons of reasons a homeowner will decide to sell their home in as-is condition. Some of the most popular reasons a seller will decide to sell their home in as-is condition include;
Hire A Real Estate Agent Who Sells Homes In As-Is Condition
Selling a home in as-is condition can be very tricky. There are many real estate professionals who never have sold a home in as-is condition. When selling a home in as-is condition, it’s absolutely vital that you hire a real estate agent who sells homes in as-is condition!
Why is it important to hire a real estate agent who sells homes in as-is condition?
The number one reason why hiring a real estate agent who sells homes in as-in condition is they likely have a pool of cash investors who purchase homes that are in poor condition.
If you’re selling a home in as-is condition, depending on the condition of your home, it’s very likely that bank financing will not be an option for potential buyers. The reason bank financing is rare on homes that are sold in as-is condition is due to complications with the bank appraisal. If there are major defects in a home that is being sold in as-is condition, a bank appraiser is going to note repairs that need to be made prior to a buyer getting approved for the financing. This ultimately would defeat the purpose of attempting to sell a home in as-is condition.
Another very important reason to hire a real estate agent who knows how to sell homes in as-is condition is because they should have experience in negotiating in past as-is home sales. Selling a home in as-is condition requires strong negotiation skills and tenacity from a real estate agent. A real estate agent who is unable to be strong with negotiations will likely not be able to sell a home in as-is condition.
How To Choose A Real Estate Agent Who Sells Homes In As-Is Condition
How can you be sure to hire a real estate agent who sells homes in as-is condition? The best way to increase the chances you hire a real estate agent who is a rock star when it comes to selling as-is homes is to know what interview questions to ask when selling your home. Some of the most important questions to ask when interviewing real estate agents to sell your home in as-is condition include;
Disclose, Disclose, Disclose
Just because a homeowner is selling their home in as-is condition does not mean they should hide deficiencies in their home. A common question from home sellers relates to disclosure.
It’s important that if you’re selling your home in as-is condition, you should disclose all that you know about your home. If you’re aware of structural problems with your home or a roof problem, don’t hide them from prospective buyers. This can lead to problems in the future and potentially law suits if it can be proven you blatantly didn’t disclosure known problems.
Weigh The PROs & CONs To Making Minor Repairs Or Upgrades
The ultimate goal of selling a home in as-is condition is to not make any repairs or upgrades to a home. Before selling a home in as-is condition, it’s important that you weigh the PROs and CONs to making minor repairs or upgrades.
Performing minor upgrades such as freshly repainting a room or replacing light fixtures can help a home sell faster. Certainly when selling a home in as-is condition, a homeowner is not going to replace windows or repaint the exterior, however, making some cheap repairs and upgrades maybe a good idea, depending on your situation.
What are the PROs to making minor repairs or upgrades to a home?
What are the CONs to making minor repairs or upgrades to a home?
Price Your Home Accordingly
Whether you’re selling a home in as-is condition or not, pricing in real estate is very important! When selling a home in as-is condition, correctly pricing the home is vital.
The majority of homes that are sold in as-is condition are purchased with cash. It’s important to keep in mind the number of potential buyers is smaller than a traditional real estate sale. Many of the homes that are sold in as-is condition are either short sales or bank foreclosures.
Buyers who traditionally purchase homes in as-is condition are typically looking to buy a home cheaply, fix up the home, and turn around and sell it or rent it. Investors who purchase as-is homes with the intention to “flip” and sell the property have formulas they use to help increase the probability it will generate a strong return on their investment.
If you’re selling your home in as-is condition, understanding who potentially will purchase your home can make the difference between it selling in as-is condition or not. A top Realtor who sells homes in as-is condition will have a good feel for what price tag investors would be willing to pay for your home. If your home is priced close to the estimated value an investor would be willing to pay, it should sell quickly and it’s possible you may receive multiple offers on your home.
Recently while selling an Irondequoit, NY home in as-is condition, the seller didn’t understand how an investor would determine how much to offer for their home. After explaining that the number one priority for most investors is the estimated resale value and calculating the costs to rehab the sellers property, the seller had a understood how the the suggested listing price was determined. Needless to say, the property sold in under 30 days very close to the initial asking price!
Be Realistic But Stand Your Ground
When selling a home in as-is condition you must remain realistic throughout the process. One thing you need to be realistic about is the chance you’ll receive low ball offers on your home is pretty strong. Many investors who purchase homes that are in as-is condition will write several purchase offers at once that all could be considered low ball offers.
Another thing you need to be realistic about is the chance that even though you’re selling your home in as-is condition, a buyer still may opt to complete various inspections. There are tons of reasons why having a home inspection is a good idea and many investors will choose to do so, even if a home is being advertised as being sold as-is. Remember, a buyer who chooses to have various inspections, in most cases, will be responsible for the cost.
Now that you’re being realistic with the idea a buyer will want to perform various inspections, it’s important to understand that some buyers will still attempt to request repairs or adjustments in the price after inspections. This can be extremely frustrating for any homeowner who is selling their home in as-is condition.
Ultimately, if a buyer requests repairs to be made or adjustments in the price, you have the final say.
If you decide that selling your home in as-is condition, it’s important you have an understanding of the process and also understand some of the hurdles you may face. Once again, the most important thing to understand when selling a home in as-is condition is that just because a home is advertised as an as-is sale, doesn’t mean buyers will not attempt to make requests of a homeowner.
The above guide to selling a home in as-is condition will help properly prepare you for the challenge of selling a home in as-is condition.
Other Top Home Selling Resources
Are you thinking of selling your Rochester, NY home in as-is condition? If so, make sure you hire a top Rochester, NY Realtor with experience in selling homes in as-is condition. If you have not selected a Rochester, NY Realtor yet to sell your home in as-is condition, contact me, as I’d love to explain how I’ve helped many Rochester, NY homeowners sell their homes in as-is condition in the past!
About the authors: The above article “How To Sell A Home In “As-Is” Condition” was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise.
We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.
Visit our website at www.HiscockHomes.com.
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