Thursday, October 17, 2019 / by Ariadne Gold
There are a couple of things to consider before listing your house as-is.
1. What repairs are needed?
Are you listing as-is because there are a lot of repairs needed? If you don’t have the funds to complete those items, this may be the way to go. If there are only some minor repairs that you are aware of, it would be best to either complete those before listing, or add in the remarks that they will be completed prior to closing. Some companies will do the work prior to closing and then allow the invoices to be paid out of the proceeds, so if you are low on funds that may be an option.
2. Who are you marketing to?
If your property is not financeable and you’re marketing to investors and cash buyers, they will normally not expect repairs to be done. If you are marketing to buyers who are going to be getting a loan for the home, some loans (primarily FHA and VA) will require certain repairs to be done prior to closing. These include peeling paint, handrails, smoke and CO2 detectors, and other safety hazards. Your listing agent should be able to tell you what items would be important to complete prior to listing. An as-is listing will also scare off some buyers, who will assume that the property must have major issues. In this case, it would be better to list it and negotiate repairs during the contract. Remember, you are legally obligated to disclose any defects that you are aware of!
3. How much do you want to sell for?
If you’re wanting to sell at the high end of market value, most buyers will expect those repairs to be done. If you aren’t able to do that before listing, a credit for the items is a good option. However, even if you reduce the price, lots of buyers won’t have the cash on hand to complete large repairs on their own so keep in mind that you may lose some potential buyers.
So, in short, unless you are marketing to investors or cash buyers, it is usually best not to list your property as-is.
As always, I’m here if you have questions! (509) 217-7172