The Definitive Guide to Selling a House in Its Current Condition

The Definitive Guide to Selling a House in Its Current Condition

What does “selling a home as is” mean?

When home sellers offer their home “as is,” that means the home will be sold in its current state. No repairs, no updates, nothing. What you see is what you get. This can mean different things to both the seller and the potential buyer.

For the buyer

When a prospective buyer chooses to purchase a home as is, he or she is accepting responsibility for any of the house’s current issues. 

Before the sale can take place, the house buyer must sign an agreement stating they are requesting to purchase the home as it is on the date the offer is submitted. 

For the seller

When it comes to selling your home as is, you’ll spend less time, work, and investment in preparation efforts for the sale. However, one cost of selling an “as is” home may not be monetary. Instead, the price will come in the currency of disclosure.

If you’re selling a home as is, you must be fully transparent about the home’s condition and issues to any cash buyers. In fact, you are legally obligated to answer any questions regarding existing problems and necessary repairs with your home honestly. 

That includes (but is not limited to):

• The working condition of your home appliances
• Draining or flooding issues
• The presence of lead-based paints
• Any potential for natural hazards like wildfires, earthquakes, or floods
• Roof damage
• Termite damage and defects
• Mold
• Structural defects
• Significant plumbing or electrical problems
• External issues such as noise levels
• Legal issues associated with the house
• Radon levels

Another reason why honesty is the best policy? Home sellers or real estate agents who misrepresent the home or refuse to disclose appropriate information could face fines and legal penalties.

If you have questions about which of the house’s features are considered “quirks” and which are issues you need to disclose, your best resource is your real estate agent. But are you wondering how to find a good real estate agent that will be there every step of the way?

When it comes to selling a house as is, the agents at Berkshire Hathaway HomeServices California Properties are practiced professionals. The trusted Premier Valley Investments  can go over the legal disclosure requirements of your area and help you address them with potential buyers. 

Why would someone want to sell a house as-is?

Selling a home “as is” can be a sensible option for a home seller for a variety of reasons. You may have just accepted a job in a new city that starts immediately, or you just bought a new house at an incredible price and want to stop paying double mortgages ASAP. Or, you might have inherited a new house and are looking to sell as painlessly as possible. 

Whatever the situation, selling a house as is can certainly simplify the home-selling process for a home seller. But just because you’re listing the home as is, doesn’t mean you should lose out on additional gains. Just by learning a few home selling strategies or getting expertise from our California Premier Valley Investments team for selling a house as is, you can get even more return on your sale.

Read on for a complete guide to as-is home selling.

The pros and cons of selling a home as is

When you decide to put your home on the real estate market, even the smallest decisions can make a big impact on your financial future. Before choosing whether you want to sell your house as is, familiarize yourself with the pros and cons.

Pros of selling a house as is

Selling a home as is can streamline the selling process. A few benefits of this practice include:

Budget-friendly – If you decide to sell your house as is, you won’t have to invest in home improvement projects to increase its appeal. Other than closing costs, taxes, and fees, your selling expenses will be minimal.

Simpler preparation process – Many home sellers invest significant time and money in preparing their house for the market. But when you list your house as is, you can skip weeks (even months) of home improvement projects (as well as the associated costs).

Quicker sale – Typically “as is” homes sell faster in a cash buyer’s market. Cash buyers looking to “fix-up” an as is home will snatch it up as a quick sale, sometimes as a cash offer, and immediately begin the renovation.

Location increasing value – The old adage is true when it comes to real estate for a real estate investor and homeowner alike—it’s all about location, location, location. If your house is in a high-demand area, your as-is home may sell for far above its original value and get a cash offer even if it needs renovation.

If your house is in a high-demand area, your as-is home may sell for far above its original value even if it needs renovation.

Cons of selling a house as is

Just like any major home selling decision, there are notable drawbacks to selling your home as is. These potential disadvantages of a sale by owner setup include:

Potentially reduced ROI – Homes are an investment that typically appreciates in value—but after years of life’s daily wear and tear, your home may need a sprucing to regain that value. That’s why many home sellers invest in upgrading appliances and making cosmetic changes before listing their property. 

If you sell your home as is, you may not see a significant return on your investment. In fact, you may break even or even sell the home for less than what you originally paid. 

Smaller market – Usually, “as is” homes are scooped up pretty quickly from fixer-upper buyers. However, that market is considerably smaller than the typical home buyer market. A smaller market can mean less room for negotiations to go in your favor.

Lower selling point – It’s hard to answer “how much do you lose when you sell the home as is?” Real estate professionals will point out that updates to your home can significantly improve your price point. Forgoing that option might mean leaving money on the table. 

Before you decide whether to sell a home as is, try seeking expert advice from a real estate professional. At California Properties, our real estate agents live and breathe today’s ever-changing housing and real estate market. Their expert perspectives may catch unique selling opportunities for your as-is home.