What Does Selling A House As-Is Mean?
Selling a house as-is means that a seller will not be making any improvements and/or repairs to the house that is being sold. The house is available in its current condition. This is usually done by people who just want to sell a house and move on without having to spend the money on repairs and other things that will make the house more appealing or “pretty.” Some people who choose to do this might have had past struggles trying to sell a house that looks perfect for buyers.
Maybe you don’t have the money for what could be costly repairs and fees that may come up during a house inspection. Remember!! There are disclosures to be aware of that are necessary. Some states have laws regarding the disclosure of houses that are being sold. Particularly in Tennessee, a seller must disclose material defects that they know of. But that shouldn’t scare you away from wanting to get your rid of your property in it’s current condition. These are just laws to protect buyers and not mislead them! Make sure to keep in mind that when you are selling a property as-is, the selling price is lower than it would be in other circumstances. Not only does this help tell buyers “hey, this house does need repairs”, but it allows the home to sell quicker as well. Now, let’s quickly discuss some of the pros and cons of selling a house as-is. This will help you determine whether or not you should sell as-is or make repairs prior to selling.
Pros For Selling A House As-Is In Knoxville TN
There are many investors and cash buyers who might be interested in investing in a fixer upper. These buyers can purchase your home in cash and save you from making any repairs since they will truly buy it in its current condition.
This can take away the stress of doing repairs yourself and trying to make a house perfect for buyers. Traditional buyers usually ask for some repairs after the home inspection, even if you advertise the house as an “as-is” sale. This means you will want to market your home heavily to investors and other cash buyers who won’t ask for them.
Selling a house as-is can do well in a seller’s market because fixer-uppers are more attractive to some due to the high cost of other properties that are being sold at high prices. But selling as-is can be an easy task in any market!
Cons of Selling Your House As-Is In Knoxville
Buyers may still ask you to pay for repairs even if you listed the property as an “as-is” sell. That’s why we spoke about marketing your house heavily to investors and cash buyers so you eliminate wasted time with traditional buyers.
Many buyers are just not looking for a fixer-upper because they do not want to put the effort into major repairs and home renovation.
Sellers are usually expected to have a low list price. This is because the buyers know they will have to make their own repairs once the property is theirs. This doesn’t mean you can’t get a fair offer on your house! Avoid being low-balled even though the house needs repairs! you can easily do this by vetting your buyers. We wrote an additional article of how to find a legitimate cash buyer for your house.
You may come across buyers who really want to haggle the price down to get their best price, but it might not be the best price for you. You need to establish and have a realistic fair price in mind prior to selling the house to avoid this.
Final Thoughts On Selling A House As-Is
Buying a house as-is poses a major risk for the buyer, especially if the buyer finds that a property has much more extensive damage and needs more repairs than previously thought. Regular homebuyers will normally pay for home inspections, and these can cost hundreds of dollars and take several weeks to complete. Also, remember there can be certain inspection contingencies in real estate contracts, and sellers in most states do legally need to disclose any known damages or areas in need of repair.
What does this mean for you as the home seller? If you truly want to sell your house as-is, you should research home buying companies in your area. Although your state may require you to disclose known home defects; home buying companies aren’t scared away by these defects. In fact, that is primarily what they are looking for. If your home needs several repairs and updates, it’s going to be difficult to get market value for the home anyways. Instead of spending months trying to sell the home to a retail buyer, a professional home buyer allows you the opportunity to sell your house as-is fast, with an all-cash offer. This eliminates the stress of wondering when your home will sell and the potential stress of having to make repairs to get your home sold.
*This article is not a substitute for legal or tax advice. All legal advice should be from the counsel of an attorney. Any tax advice should be from the counsel of a certified public accountant, or an attorney that specializes in tax.