Selling a house can be a stressful experience. For many people, the endless stream of viewings, and the need to accommodate prospective buyers at various times while keeping their homes in pristine condition can be too much. There may also be some urgency to sell the property, as it could mean straddling mortgage payments on two properties.
In addition to the above, preparing a property for sale is often a time-consuming and costly process. Whether it’s major repairs, paying for professional photography, hiring a staging company or enhancing your curb appeal, the checklist of items to attend to can be lengthy. While most sellers want to make their homes as habitable as possible for their new owners, many are opting for alternative ways to list their properties and choosing to sell ‘as-is.’
What Is an As-Is Sale?
When a seller lists their property for sale as-is they are selling it in its current condition without any repairs, renovations or other upgrades or improvements to it beforehand. This does not excuse the seller from having to disclose to the buyer any known problems or material facts regarding the state of the property such as a damaged roof, cracks in the foundation or other structural issues or defects.
The laws regarding what a seller must disclose to the buyer will vary by state. While the buyer of an as-is house takes on the responsibility for any work that is required, they can still negotiate on the asking price, which is contingent on a property inspection. This article will discuss some of the reasons why you should sell your home as-is.
Need for a Quick Sale
There are many reasons why you may want to arrange a quick sale of your property. A new job may require you to relocate to another state or country and you require the proceeds from the sale to purchase your new home. As time is of the essence you will need to sell your home as quickly as possible.
As-is sales commonly attract cash offers from real estate investors and house-buying companies like Slghomebuyer.ca. Without the need for the buyer to arrange a mortgage loan, the risk of the transaction falling through due to financing is eliminated, meaning sales can be completed quicker.
You may have inherited a home that you cannot afford and have no intention of living in. Dealing with viewings, repair works and other issues on top of your own responsibilities may be impractical and burdensome, especially if the property is located far from your home. Rather than paying for utilities, property taxes and other expenses, arranging a quick house sale can provide a solution to these problems giving you the freedom you desire.
No Need for Repairs
Your home may be in need of significant repairs, which are costly and time-consuming. This could range from faulty wiring or plumbing to the need for a new roof. By listing your property conventionally, you would be required to fix these issues before attracting interest from any serious buyers. With an as-is sale, there is no need to pay for such necessary repairs first in order to see a return for your money. You may also have enough equity in your home to sell it without the need to spend money on repairs.
If you cannot afford to maintain your property in fit condition or think that the cost of repairs is too high given its market value, it may be preferable to let a buyer take it off your hands. This will also allow you to save money on expensive renovations and repair work, enabling you to channel your savings into buying a new property elsewhere.
A job loss, poor investment or other financial difficulties can make it challenging to stay in your current property. Mortgage payments and maintenance costs may be a struggle to keep up with each month making an as-is sale an attractive option. Selling your home this way will likely lead to a cash offer and a shorter sale compared to the traditional route of listing a home on the market enabling you to become financially secure again while reducing your monthly expenses.
An as-is sale can also be helpful if you are facing foreclosure on your home perhaps due to an inability to meet your mortgage payments. This will allow you to sell your property quickly, for its market value and without negatively affecting your credit report.
Divorce often results in the sale of the marital home as both parties can no longer live together. Aside from painful memories and the desire for a fresh start, there may be the additional expense of hiring a divorce attorney making the cost of maintaining the property too onerous for one party. Until the divorce is finalized, there may also be disputes as to which party pays the mortgage and how much they will contribute. In this case, the best option may be to sell the home.
An as-is sale can remove these responsibilities from both parties and since there is no need to arrange repairs or undertake any other work on the property there is no need to discuss the expenses or arrange such matters between you.
Attracts Serious Buyers
The traditional method of listing a house for sale can attract a long line of potential buyers without any of them putting in an offer. This can leave some properties sitting on the market for months.
An as-is sale will typically deter the average homebuyer who is looking for a property that is in good repair and ready to move into while attracting interest from serious buyers. This will usually be real estate investors who are looking for ‘fixer-uppers’ or undervalued or distressed properties that are often in need of serious repair. These are then bought at a discount, renovated and flipped for a profit. Selling your home as-is can streamline the sale process by bringing you offers from parties that are serious about buying.
If you are facing one or more of the situations mentioned in this article, an as-is sale of your home could be the answer you are looking for.