There’s a lot of conflicting information going around about the overall appeal of purchasing a fixer-upper. While tons of real estate reporters claim that people aren’t willing to buy homes that need work, 68% of millennials state that they’d happily buy a fixer-upper.
So, where does that leave the seller who’s looking to sell their house as-is? If your home doesn’t need a ton of work, you may not run into many issues selling as-is. However, what about properties that are more on the “distressed” side?
Learning how to sell a house as-is isn’t as difficult as you might expect. The key is staying transparent, being realistic about property value, and finding the right buyer.
Read on to learn more about selling a house as-is.
What Does “As-Is” Mean?
On a basic level, stating that you’re selling your home as-is entails that you’re not going to invest in any pre-sale renovations. Whereas some sellers may try to pick a few renovations with a good return on investment to tackle before listing, as-is sellers aren’t willing to do that. They may not have the time, the money, or the interest in boosting their property value.
More specifically, “as-is” does come with a certain connotation that sellers should be aware of. If you list a property “as-is,” you’re implying that it does need some work and that the buyer should expect to take on that work, themselves. However, the degree of work needed can vary, which is where you’re integrity as a seller will come into play.
How to Sell a House As-Is in 2021
Selling a house as-is in today’s market is not quite the same as selling a recently renovated or well-maintained property. You’ll need to prepare yourself for these differences so that you know how to list your property and what to anticipate from interested buyers.
Evaluate the Property Value Fairly
Remember that whoever buys your property as-is will need to invest in all of those updates and renovations you’ve decided to forgo. That means that you can’t expect them to pay the same price for your property as they would a move-in-ready property.
Consider what you paid for your house and then adjust that price to the current market. You can assess your local market by taking a look at other property sales in your area and narrowing in on properties that are similar in size, amenities, and condition to your own.
Then, take into account how much the necessary renovations are going to cost. For example, if the kitchen needs $10,000 worth of upgrades, you’re going to need to knock down your asking price by $10,000.
Be Transparent In Your Description
Trying to hide the condition of your property in order to get a better price isn’t going to work. Instead, make sure that you note that you’re selling the property as-is in the listing title. Then, describe some of the bigger and more costly issues the buyer should know about.
Big issues include damaged roofing, outdated appliances, a damaged foundation, and other problems that require sizeable investments. Anything a home inspector would take note of should be mentioned in your description.
That being said, you don’t need to describe every little crack in the paint or chip in the flooring. These are things that buyers who go for fixer-uppers expect. They just need to know what will need their immediate attention–and the majority of their budget.
In other words, if a novice can’t fix it DIY-style, it’s worth bringing up in the description of the property. Some of those other little flaws will show up in the photographs, and buyers can decide if they can take them on.
Prepare for Push-Back from Lenders
If you’re trying to sell your home as-is on the traditional real estate market, you’ll need to prepare for the input of mortgage lenders. Lenders often require assessments from home inspectors before agreeing to help your buyer out. In that economic relationship, the property is collateral and the lender doesn’t want to provide more money than the collateral is worth.
As a result, lenders have a tendency to make things more complicated. Your buyer may consider $150,000 a fair price for your property, while the lender may only be willing to loan them $80,000. The options then come down to the seller lowering their asking price, the buyer searching for a more lenient lender, or the sale falling apart altogether.
Make sure that you’re prepared for this push-back. If you don’t have the time to deal with this kind of back and forth, you’ll want to reconsider selling on the traditional market.
Find the Perfect Buyer
What do you do if the traditional market isn’t for you? Is there still a way to sell your home as-is without dealing with inspections and lenders and negotiations?
As a matter of fact, there is. Many homeowners who want to sell their home as-is find that selling to a cash home buyer is their best option. This speeds up the process, cuts out the need for an agent, and doesn’t involve any unexpected or hidden fees.
Find out more about how to sell a distressed property to the perfect buyer.
Selling a House As-Is Isn’t Impossible
More and more people are wondering how to sell a house as-is and whether or not there’s room for fixer-uppers on the market. As you can see, selling a house as-is isn’t impossible or even difficult. As long as your reasonable in your expectations, transparent about the condition, and looking to the right market for your perfect buyer, you’ll sell your house as-is in no time.
Wondering what to do with your next property and how to make it your own? Take a look at our content for inspiration and tips that will help you transform your next home into your personal paradise.