Friday, November 29, 2019 / by Amber Tice
Should you sell your home as-is? Let’s first look at what this means and if it is right for you and your family.
I think it is important to understand what it means to sell your home “as-is.” Simply put, this means you will not agree to do any repairs for the buyers after they have had an inspection done on the property. Typically, a buyer will get an inspection, and ask for certain repairs to be completed before the transaction closes. As the seller you have an opportunity to agree to these repairs, agree to only some of the repairs, offer a different outcome, or reject the response all-together.
There are several reasons why a seller might not agree to do repairs to a home:
Affordability: A seller may simply not be able to afford to make repairs on their home. It could be that the reason they need to sell in the first place is because of their financial situation. This is of course information that you will not have as a buyer so you should never assume this is the reason, but it is a possibility.
The amount of repairs that need to be done is overwhelming: A seller may decide that the amount of repairs that need to be done to a home is just too much for what they are willing to do. In this case, they have decided to sell in hopes that someone else will have the tools, the energy, and the ambition to put the work into the home.
Pre-inspection: A seller may decide that they want to have their own inspection done on the property and have decided to make repairs prior to putting their home on the market. This may be a good option for a buyer who would like to close quickly and who doesn’t want to go through another round of negotiations regarding the inspection. A buyer will always want to get their own inspection done as well for piece-of-mind and for their own protection, but if a seller has already done a lot of the work based on a pre-inspection then there may not be a lot for the buyer to worry about as long as the seller took the pre-inspection seriously.
If you are a seller who wants to sell you home as-is it is important to keep in mind that this limits the financing terms you will be able to accept which in turn limits the amount of buyers who will be able to purchase your home. A home that needs a lot of work and that has an owner unwilling, or unable to make repairs will not sell as quickly. FHA and VA lending requirements state that certain repairs must be made before lending can take place. An appraiser will come out to determine if these safety concerns have been taken care of. If they haven’t been met the deal you have made can fall apart. You may only be able to accept a cash offer. Make sure your listing agent is aware of your intention to sell your home as-is. It will need to be specified in your listing that you do not intend to make repairs. This will help alleviate some of the stress of having buyers come through your home that will not be able to get financing for your home.
Selling your home as-is is an option, but it certainly comes with certain limitations for you as well as any potential buyers. However, if this is your only option then just know-it is possible! The sale of your home may just take longer than you expected. I think it is key to understand that you will need to be patient with the process and try to be as flexible as you can in this situation.
Remaining patient and flexible will help you keep a clear head, and will help get your home sold faster in the long run.
Happy house selling!