Planning to sell a house as-is is a common decision many homeowners dwell into these days. Homeowners are now decisive in getting their homes put on sale even with a need for minor repairs. The good thing with the increasing percentage of homeowners selling their house as-is is the number of potential buyers interested in getting one.
But with all these figures, are there significant advantages a seller gets to enjoy if he/she lists the house for sale as is? If you are an interested homeowner who wants to put their home for sale, you might ask the same question. So before you move forward, you need to learn the basics of selling a house as is before you list your property in the market.
Birds Eye View in Selling A House As Is
There’s a lot of interpretation when you say “as-is”. If we put it directly, it means “what you see is what you get.” That’s a straightforward interpretation, but for some people, they interpret a listing tagged with “as-is” differently. For some, when they see a listing with “as-is,” they think of either of the following:
- an over-eager seller who wants to dispose of the property
- or a shabby shack that needs a good deal of overall repair
The truth is, there’s a lot of interpretation, and it depends on the potential client viewing the listing. But each case is unique, and every seller-buyer situation is different as well. It is essential to know that selling your house as is is not merely making the sale and giving out the key. A seller is bound to make full disclosure about the property’s condition, and a purchase agreement must be in place.
With these formalities, selling a house as-is becomes either an easy feat or totally a difficult task to complete. With the help of a professional real estate agent, it might take extra effort, but getting the task done is possible. Experts can provide you a practical guide to look for a buyer and close a deal.
Advantages in Selling Your House As Is
One of the reasons why many homeowners list their house as-is in the property market is that they don’t need to make pre-purchase repairs for it to be sold since there are potential buyers who are into a fixer-upper. Because of these potential buyers, homeowners already know who their target market is. Therefore, making a sale is easy. Your real estate agent can help you determine whether your home – and your market area – is ideal for this situation.
But what are the other advantages of selling your house as-is? We have listed a few of the benefits a seller can enjoy when they list their house as-is in the market.
1. Less work required.
Staging an open house tour requires a lot of effort since you need to show off the good points of your home. But when you are selling it as-is, you can invite your potential buyer to visit your home directly and have the tour right away.
You don’t need to take out your belongings and have a thorough cleaning. The buyer will get to see the property irrespective of its current condition. They’re expectations may be a bit lower, knowing they’ll also be taking advantage of a lower asking price.
2. Low expenses.
Selling a house as-is requires low to zero expenses if your home is in good condition. Good condition means the paint is fairly new, the fixtures are working, and only very minor repairs are needed. But for a house in a fair condition, more repairs are needed, like some minor wall repair, fixtures that need replacement or flooring that requires work.
All in all, repair expenses are considered low. Moreover, you can still sell your house even without fixing anything.
3. It attracts cash buyers.
Many homeowners who put their house as-is on the market are enjoying the benefit of receiving cash directly from cash buyers. Selling a house as-is attracts cash buyers since some of these sellers are eager to dispose of the property the soonest and move forward. Selling it to cash buyers makes the entire process quick and easy.
4. Fixed target market.
Selling a house as-is will be to a smaller target market. This means the seller already knows who their potential buyers might be and and can focus marketing efforts to that specific group. There are typically three types of potential buyers of fixer-upper properties which are the following:
- Remodelers. Buyers who have a strong purchasing power that ideally like your property location and open to the idea of renovation.
- Flippers. These types of buyers are property vultures. Their main objective is to buy properties, make some improvements, and sell them for profit.
- Niche Buyer. These types of buyers are not entirely interested in getting a house as-is but more inclined with their specific reasons like near to their office location, school, parks, or perhaps they are looking to spend less up front and then fix the home up over time.
Selling a house as-is is a good idea if you are currently facing financial issues, prefer not to do the repairs on your own, or just want to sell the house and earn the cash for other purposes. Just remember that the money you save not doing the repairs will be taken into consideration on the selling price. Whatever reasons you have, it is imperative to know first the basics in selling a house as-is before diving in. If you have questions, consulting to a professional will help you better understand and can give you input to make the sale possible.