The condition of your home will dictate the price you get in a sale. You have the option of selling your as-is home on the market or you can sell to an investor. Selling a house “as-is” is a great way to sell with no repair obligations. In this article, we’ll cover all you need to know about selling a house “as is,” your options, and how to get a reasonable price.
What Is Selling A House As Is?
Selling a house “as-is” simply means the seller isn’t ready to make repairs or accept concessions. Typically, buyers can still negotiate a price cut for issues found during an inspection. In certain areas of states like Florida and California, selling “as-is” is the status quo. However, in Michigan and most other states, you have to include “As-Is” when you’re listing. But don’t confuse an as-is listing as an excuse to fraudulently sell a house with damages. You’re still obligated to disclose all issues you’re aware of.
“As-is” houses aren’t always run-down properties. In fact, some sellers make small renovations. Sometimes, it’s just a caveat to chase off nit-picky buyers who request minor repairs after inspection. Anyhow, it’s primarily a billboard announcing that the seller won’t repair anything.
How To Qualify A Listing As An “As Is” Sale
Include “As-Is” In Your Listing
Buyers must be aware you’re selling your house “as-is,” so you or your agent should specify it in the online listing. Although this reduces your buyer pool significantly, you’ll be dealing with buyers enlightened about selling a house as-is. Expert realtors will advise you to refrain from selling a house “as is” if it’d qualify for a conventional, VA, or FHA loan. Obviously, you’ll be leaving a lot of money on the table selling “as is.” Still, it’s understandable if all you want is a fast sale — no cleaning, repairs, or supervision.
Be An Open Book
A myth many sellers — and some buyers — believe is that they can sell a house as is without disclosing underlying issues. But, you’ll be damned if you’re caught hiding defects even as small as a photo frame over a hole in the wall, paint over cracks, after closing a deal. Buyers can file a lawsuit against you if they find out. So, instead, list all the issues riddling the house you’re aware of to the letter. Things like:
- Outdated electrical wiring
- Leaky roof (even if you think it’s obvious) Old electrical
- Insect, mice, or mold infestation
- Cracked walls
- Plumbing leakages
- Flooded basement (even if you fixed it)
Your disclosure shouldn’t be limited to these defects. Write everything you know, and preferably you should consider a pre-listing inspection.
Order A Pre-Listing Inspection
Although you don’t have any obligation to order a house inspection, it gives your listing more transparency and less room for haggling. More importantly, buyers perceive the listing as trustworthy — which is a big deal in an as-is sale. Also, you won’t have to deal with unexpected price cuts from buyers who discover structural defects during the inspection. That way, you’ll get a befitting offer to your asking price.
Ways To Sell A House As Is For A Good Price
You have just as many options to sell your “as is” as with a conventional home sale plus several options to market your home.
Find A Cash Buyer
The fastest and often common way of selling a house as-is is through a cash buyer. Most times, cash buyers are wholesalers, investors, or house flippers. A cash buyer may bid below your asking price, usually up to a 30 percent cut. It covers the cost of repairs and full responsibility for future damages.
What’s more, they’ll close the deal as fast as ten days to two weeks. A cash buyer like Cash For Michigan Houses will send you an offer within 24 hours upon request. And close within a few weeks, sometimes days. You don’t have to worry about fixing and painting, selling furniture, or disposing of belongings. We’d take the home off your hands quickly and with a fair offer.
Sell At An Auction
Selling at an auction is an excellent option to get more buck for your house. It brings many interested buyers to gather around for a bidding war. Also, it’s quicker than using an agent and more profitable than going through a cash buyer. The winning bidder is legally obligated to close the deal after 28 days in a sale by auction. You can sell your house as-is at an auction without having to worry about structural defects or old belongings. Buyers here come prepared for these issues and ready to buy. But between viewing days, surveys, and open days, an auction could last up to 3-4 months. And if you’re not careful with the auction house you pick, you’ll end up paying hidden fees that’ll hurt you.
For Sale By Agent
If you’re looking for the best value on an as-is house, it’ll be through a real estate agent. An experienced agent will list your home on the multiple listing service (MLS) and share directly with their network of investors who might be interested. What’s more, an agent will assess your house’s market value more accurately than you would.
You’ll need a real estate agent experienced in dealing with investors to pull this off. He’ll help you find the true value of the house “as is” the price. A simple post on Facebook asking for an agent could help you find solid options. And then, screen the agents your friends and relatives recommend over a phone call with the right questions. Have your agent list the house at the start of the week at a price slightly below what you think it’d sell for as is. Then set an open house for a Saturday so that buyers will see their competition.
For Sale By Owner
You can sell your house as-is by yourself if you have the knowledge and time. However, it takes skill to list a house and get offers fast on the MLS. And a lot of time organizing and attending to showings and open days before closing a deal. Given the circumstances of most as-is houses, sellers are either living in another location or too busy themselves. However, you can save 4-6% of the final sale price in commission you won’t be paying an agent. But of all the ways to sell, an FSBO may take the longest and sell for the lowest price.
How To Fix Up Your House As-Is For Maximum Gain
Selling as is doesn’t mean you can list a gut-wrenching or wretched house and get away with it. Sure, if you’re adamant, you can list anyway — but you’ll either receive lowball offers or sit on the MLS for months if you turn them down. For the best deal, you should make minor repairs that improve your house’s appeal and chances of selling faster — for little to no cost. Here are ways to go about it.
Fix Small Cosmetic Issues
Many sellers renovate parts of the house for little to no cost. You’ll have an extra advantage if you’re a handyman. A nice place to start will be to change outdated and burned-out lighting bulbs. Consider installing soft lighting in the living areas, dark spots, and consider solar-powered motion bulbs for the front yard. Lighting up a house portrays a friendly ambiance and increases any house’s appeal. But you should inquire with your agent to know what buyers in your areas cherish. Also, update the old ceiling fans, unhinged cabinets and blown-out wall sockets if you’re really looking to push for every dollar.
Spruce Up Where You Can
Most buyers judge the value of a house by its cleanliness, clutter, and curb appeal. And the same applies to houses sold as-is, where prospective buyers won’t bother to enter if the yard looks like one out of a horror movie.
Nonetheless, cash buyers won’t mind — they’ll even welcome this opportunity to bid a lower price. However, you can make small and cheap DIY changes to remedy that — even if you’re out-of-state. Choose one day to mow the lawn if it’s overgrown or spend a couple of bucks to hire lawn care services. You can rest assured you’ll see more than a quadruple return of your investment in the home’s value.
Clean and Declutter
One easy and cost-effective way to boost the value of a home selling is cleaning. Cleaning isn’t limited to dusting tabletops or sweeping floors but can also be a complete revamp of the house. If you can spare the time, dump the trash in the house and scrub everything. Plus, you can sell furniture and personal items to second-hand buyers or donate them to a charity.
A debated topic when selling a house is replacing old carpets. However, you can’t go wrong with professionally cleaning the carpets. This can get rid of odors and stains. Smell has a big impact and affects the willingness of buyers to submit an offer.
Get A Paint Job, Especially the Trim (it’s Worth It)
Painting your home’s interior or exterior before selling adds tremendous value. To be exact, you could gain 1-3% on your home’s final selling price. However, it can be tricky and costly if your home has many underlying issues, like mold infestation, rotting wood, or faulty foundation. Normally, you’d need to fix these issues before painting can continue, which clearly defeats the goal of selling as-is.
But by all means, if your home is still in good shape, spare some money to paint before selling it as-is. Neutral paint colors strike most home buyers because they can picture themselves settling. Plus, they won’t find it repugnant, unlike other personalized colors. Overall, paint if you have a decent home, but sell as is if there are many wall or body issues.
How to Market A House Selling As Is
The primary thing to pay attention to is to be aware that you’re selling as is, and priced accordingly. With that said, here are ways to better market a house as-is.
Focus On The Pros
Focus on your house’s selling points and sell it! If you think the building is old and has no appealing features, think again. But this time, emphasize the floor plan, location, and lot size. These are big selling points for both cash buyers and investors. For instance, say the house sits in the center of many schools. Not only will investors rush the house like bees to a honeypot despite its condition, but first-time home buyers who are starting a family on a tight budget.
A mistake as-is home sellers make is being rigid with home price and negotiation. Like it or not, people will make you cut back your price to cover for repairs — even if you don’t make them. It’s like an informal homeowner’s insurance coverage but a win-win deal. You get a handsome offer on the house without concession for repairs, and the buyer gets a sweet deal.
Be Flexible With Negotiations
It’s worth reiterating — be flexible during negotiation. Else, your home could stay on the market for months and end up selling lower than you bargained for initially.
Use Actionable Keywords
In a feat to emphasize your house’s pros, actionable keywords make buyers actually see them. Most listing websites rank listings with stronger keywords use at the top of their search page. Use action words like spacious, upgraded, and newly-painted to accurately describe your house’s condition. And use the description box as a chance to tell a moving but information-rich story.
Pros And Cons Of Selling A House As Is
Pros Of Selling A House As Is In Michigan
- Buyers Handle repairs: You don’t have any obligation to fix issues found during the inspection. The best you can do when selling a house as-is is to negotiate a price to cover the costs.
- Fast Cash Sale: Selling a house as-is is excellent for speed selling rather than best value — cash investors are always looking to close a deal in a few weeks.
- Skip Inspections: In fact, you can state in your listing that you won’t renegotiate the price based on issues found during a home inspection. If you don’t want to deal with this, then selling as is will be a refuge — though you’ll have to settle for a cheaper deal.
- Inheritance Sale: Selling as-is is perfect for inheritance sales where the heirs live far away or are too busy to renovate and declutter. Cash buyers close the deal fast, and you can share the proceeds.
Cons Of Selling A House As Is
- Sell Fast, Lose Cash: You can sell an as-is house super-fast for cash, but you’ll be leaving a considerable amount on the table.
- Better Deals Take Time: When you’re selling as is and don’t want to sell at a discount to cash buyers. It could take a while before you find a deal to your liking, except on rare occasions.
- You Still Need Minor Repairs: Selling your house as-is still demands you make minor updates if you want to get the maximum value.