WHAT TO EXPECT WHEN SELLING A HOUSE AS IS
What To Expect When Selling Your House As Is
There are many reasons people find themselves in a predicament where they need to sell a house as is. Maybe they’ve inherited an ugly house and don’t want to make the repairs, maybe they’re facing foreclosure and need to sell their house fast, maybe they’ve moved and are unable to arrange for contractors. Or perhaps, they simply don’t have the time or money to fix the house they want to sell.
Selling a house as is doesn’t need to be a challenge as long as you follow these 6 Guidelines:
1)If you don’t want to sell to an investor, understand what minimum repairs will be necessary. Most mortgage lenders will not lend on a house that has structural, health, or safety issues. No matter how enthusiastic a buyer may be to buy your house, they will be unable due to lender requirements. That means if you have foundation issues, mold problems, or a leaky roof, you must have them fixed or you’re limited to only cash home buyers. With that in mind, be aware that people who pay cash for houses are going to expect a bargain price.
2) Full disclosure is necessary. Selling a house as is doesn’t mean “what you see is what you get”, but complete disclosure is still required by law. If you are aware of any problems that a buyer will need to resolve, you must let them know or face potential legal problems in the future.
3) Know the other homes for sale in your neighborhood. Take note of the conditions and amenities. Updated kitchens and baths sell a house fast compared to other features. If your house hasn’t been updated since the 90’s, be prepared to receive low offers. You can also search online for your local central appraisal district to find your county’s appraised value but take note that counties often base your value on the sales of the other homes in your area. You may opt to hire a professional appraiser. Tell him you will be selling your house as is so he can set the price appropriately.
4) Know how to respond to low offers. Because as is houses attract real estate investors, buyers with a small budget, cash buyers, and house “flippers”, you will most likely get low offers. Don’t take it personally. Many of these individuals expect you to make a counter offer. Sometimes, you just won’t get the offer you were expecting or need. In those situations, you may consider selling your house in a creative way. Perhaps, you could allow your buyer to take over your payments or offer seller financing. Maybe, you could sell your house by taking a partial payment upfront and the remainder in a couple of months or you could get your buyer to cover all of the closing costs to compensate for the reduced sales price.
5) Clean up your house as much as possible. Just because you’re selling your house as is, doesn’t mean that cleanliness won’t matter. Pet smells greatly effect the offers you’ll receive along with excessive clutter and an over grown lawn. Often times, cash buyers and real estate investors will see a mess and assume that they will need to clean it up once they’ve bought the house. In addition, they might assume that the kitty litter smell is coming from the floors and not the littler box which would require them to replace the flooring. Since home buyers will need to pay to have those issues resolved, they will make offers based on those costs.
6) If you want to get as much cash as possible, avoid hiring an agent for as long as possible. When you hire a real estate agent, you’re losing 6% off the top of your sale of your home when you close. You’ll also lose the ability to deal with your buyers directly which prevents you to negotiate in creative ways.
Obviously, if you’ve gone months without any offers, it might be time to hire an agent.
Selling a house as is doesn’t have to be difficult or stressful as long as you know what to expect and what’s expected of you. If you have the time or money you can use towards minimum repairs, do so. Happy House Selling!
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