As you prepare to sell your house and look at comparable home listings, you may come across the term “as-is” to refer to the state of a home on the market. At face value, this might seem like a strategic way to sell your house without having to invest much into curb appeal or repairs. However, there are drawbacks to selling your home as-is. Let’s look at what this real estate term means and who can benefit from it.
What Does it Mean to Sell Your Home “As-Is”?Selling a home as-is means that you are selling it in its current state. No repairs will be made, and the home buyer cannot request any changes as a condition of sale. The buyer of the house will need to sign paperwork accepting the current condition of the home and stating that they understand the transaction. Selling an as-is home does not mean you can hide problems from potential buyers. For example, if the home needs a new roof, the buyer will legally be able to ask about the condition of the roof before they buy the house. The idea is that the buyer is informed and knows what they are buying, faults and all. As-is homes come in many forms. Some are abandoned homes or severely damaged ones that buyers are looking to flip. Other as-is homes may be outdated or have specific issues like smelling like cigarette smoke from the previous owner or having unrepaired water damage. The buyer takes on the house with an understanding that they will have to make these repairs on their own.
What Are the Pros of Selling Your Home As-Is?There are instances when selling your home as-is can benefit you. Here are a few pros of considering this option:
- You don’t have to invest money in improving your home. Some people can’t afford to improve their curb appeal, update appliances, or make changes to a home. If you are financially strapped and looking to downsize, selling as-is could let buyers know that they can’t negotiate for repairs and upgrades.
- You can reduce the stress of the home sale process. Selling as-is means you don’t have to worry about improving your home and presenting it in a positive light. If you are looking for a home flipper or investor to buy it at any price, this is a good option for you.
- You can sell a home from another state easier. As-is homes are often placed by people who inherited a house and want to sell it immediately. They aren’t able to travel to the house to fix it up, hold showings, and set up staging. They are often placed on the market to cover the debts of a loved one who recently passed.
What Are the Cons of Selling Your Home As-Is?For all of the pros of selling your home as-is, there are also drawbacks. Here are a few cons of selling your home in this manner:
- Buyers perceive as-is homes negatively. Highlighting your home as-is focuses on the issues, not the value. Most buyers will assume there are serious problems that need to be addressed, which will drive away a large part of your market. Most of the buyers who reach out to you will likely be home-flippers.
- Buyers will try to low-ball you. Because your home is perceived in a negative light, buyers will be more aggressive with their offers. Once again, this is particularly true for home flippers, who want to make a significant profit on your home.
- You will have to work harder to provide value for your home. Labeling your home an “as-is” property can tarnish its charm, location, and solid bones. Instead, people will focus on all of the problems and defects that they need to overcome. As your Realtor® markets your home, they will have to redirect people to focus on the good parts and win potential buyers over. This takes more work and could keep your home on the market longer than you want.