Repair Your House Or Sell As It Is? We Examine The Pros And Cons
When you decide to sell your home, you can either decide to make the transaction without making repairs to the property or do the opposite. There is no right or wrong way of doing this; it’s all about your preference and what you deem the best course of action. However, remember that you must include whatever you’ve decided in the papers that’ll later be signed by the buyer. So, repair your house or sell as it is? Selling as is or doing repairs? Read on to learn more!
As you may have guessed, to sell a house as is means there are no repairs done after the previous person living there moved out. Although it sounds pretty simple, it’s somewhat complicated in the corridors of law. In fact, there a legal definition of this phrase, which may differ from what you already know. For one, even though you’ll not be repairing anything, it’s required that you answer any question from the client honestly.
Pros Of Selling As Is
Are you planning to sell your current home as is? As earlier stated, this means selling the property without making any necessary repairs. There are many reasons why you may choose this option, and one of them could be because you’re not financially able to cover the repair costs. Also, you might be facing some time constraints and need the money quickly. So, what benefits does this option have to offer? These include:
No Repair Costs
Sometimes, your home might require a lot of repairs and some parts may need to be replaced for it to be in a good condition. However, as a seller, these expenses might be beyond your reach. Listing the home in the market ‘as is’ can save you this stress. All you need to do is move your items out of the house and wait for the right we buy houses company to buy it.
Quick Placement In The Market
One advantage of ‘as is’ homes is the fact that they go directly to the market list. Unlike the other properties, there are no complicated repair procedures that must be followed before they can be approved for listing. This is a good option, especially for those who inherited the properties and don’t have enough time to follow the aforementioned processes due to their responsibilities.
Distinguishes The Serious Buyers From Jokers
Similar to other industries, the world of real estate is full of prospective customers who’re there to waste your precious time. Inasmuch as most people go around window-shopping before making their decision, some visit you with no intention of buying the property at all. Listing your home ‘as is’ may help weed out the less serious buyers and attract only those who are willing to pay for the house.
However, this shouldn’t be your primary reason for selling your home without any repairs. There are many factors that you must consider before deciding whether this is your best option. The act of weeding out less serious clients is just a benefit that you may enjoy. It’s worth noting, however, that there’s no guarantee that you won’t come across such buyers in your bid to find the right prospective homeowner.
Cons Of Selling As Is
Yes, you can cut on the repair costs and attract only those who are serious about doing business with you, but that’s just as far as the pros go. Depending on your situation, the cons can easily outweigh the benefits mentioned above. Here are some of the risks you’re likely to face:
Valuation of a home is determined by many things, with its current condition and the quality of structures being some of the main factors. When you renovate your home, it becomes easier to convince a buyer to purchase it at a higher price. However, if you list your property ‘as is,’ you can be sure that the value will be dragged low. It’s almost impossible to get top dollar for your home regardless of how good your negotiation skills are, especially if you’re dealing with an experienced buyer.
Another huge disadvantage with regards to price is that almost all potential clients will play low-ball on you. Remember the final price depends on the validations provided by both parties, and it’s a no-brainer that you’re at a disadvantage here. At the end of the day, you may have to settle for a lower price than your initial valuation.
It’s Tough To Attract Buyers
If you think that the home’s valuation is the only challenge you’ll face, then think again. One fact that you should keep in mind is that finding the right homebuyers won’t be a walk in the park. Remember, as one looks through all the listed properties on the Internet, one thing that’ll probably attract them is the appearance of the house. In fact, that could be the criterion used by most prospective buyers to eliminate some properties they see on the list. Therefore, unless you take someone to see the house physically and convince them why they should purchase, it’ll be very difficult to sell it within a short period.
For some buyers, acquiring a property ‘as is’ is not the biggest issue; the problem is that not everyone discloses all the information. As such, some potential homebuyers will likely use this belief against you. Consequently, they’ll imagine damages that aren’t there, with the belief that you failed to disclose this information to them. Of course, once they get to this point in their negotiation, you already know that the offer they’ll put on the table will be a fraction of what you had initially estimated.
Conclusion – repair your house or sell as it is?
Choosing between selling a home ‘as is’ and making the necessary repairs can be quite a dilemma for most homeowners. If you’re in this situation, it’s important to understand the pros and cons of both decisions. For one, selling ‘as is’ may save you a lot of upfront expenses and will take less time to list your property in the market. However, there are consequences that you’re likely to face, and one of them is low valuation of your house. It’ll also be very tough to attract potential buyers, let alone convince them to purchase. Therefore, make sure you’re well-informed of these factors before making up your mind.