What Are the Rules for Selling a House As Is?
Houses come in all shapes and sizes, and we buy and sell them to suit our ongoing needs. Sometimes, you have a long-term plan to sell your home and make any necessary repairs, stage it to perfection and have open houses to draw as many interested parties as possible. While this strategy works well, sometimes you need to sell quickly and don’t have the time or money to fix everything.
A good strategy is selling your home “as is,” as this alerts buyers and investors to a potential fast deal that can be lucrative for all parties. However, you need to follow the process properly so you don’t set yourself up for liability or disclosure issues.
Sometimes, selling a house “as is” is the best option for you, and many interested parties thrive with this type of investment. Understand the rules for selling your distressed home and sharing the financial gain with those who will do the repair work, and then you can turn the page on this chapter of your life, only to discover the next adventure that awaits.
With that in mind, what are the rules for selling a house as is?
1. Inform Your Buyers
People interested in purchasing homes come in many forms:
- Families
- First-time buyers
- Investors
- Flippers
These and other folks want to purchase an investment that will be lucrative, both at the point of sale and down the road as the market increases. You don’t want to waste your time, especially when selling “as is,” so you need to market your home as such to attract the right people.
Are you a homeowner who wants to sell house as-is for cash? If so, ensure it is spelled out in all documentation. A clause should be included, which means that the seller is unwilling to make any repairs before selling the home. If there are any issues with the property, the repair costs are the buyer’s responsibility. The purchaser is buying your home with all its charms and challenges.
When all parties understand what “as is” means, you can better avoid any unqualified or uninterested parties.
2. Consult A Lawyer
A lawyer is always part of the transaction because it is a legal exchange of goods. It is also a good idea for an “as is” property because the details in the paperwork are enhanced to include disclosures. You must list any known defects and required repairs to the best of your ability. A lawyer can also represent you if there is any legal challenge after the sale about unknown problems with the property. You want to be protected, so consult a qualified lawyer to guide you.
3. Get A Property Inspection
These rules are the right way to sell your home and protect you from later liability. While a property inspection is not legally required, it alerts you to any major issues with the structure that you must disclose. Ignorance is bliss, but your goal should not be to dupe someone into buying a lemon. Rather, you want to sell your home with all its flaws to an informed party that will take on the challenge of repairs. These may include:
- Structural defects
- Mold
- Termites or other pests
- Leaking roof
- Issues with plumbing or electrical
If you don’t get an inspector in, check for any issues and list them in the paperwork. Don’t try and hide anything, as this can come back to you as a potential liability for misrepresentation. Answer all questions truthfully when buyers ask and remind them that this is an “as is” sale.
4. Understand Your Position
You may need to move quickly for a job or family issues, so you don’t have time to get your home in pristine condition. Maybe you can’t afford to make the repairs and need to sell to ease a financial burden. It could even be that you inherited a property you have no intention of living in and just want to quickly turn it into cash. Whatever the case, you must understand the position that leads to selling “as is” and be okay with the price you demand in the market.
Usually, an “as is” home will sell lower than the average home. The offers will reflect the current state of the property, and you will not only lose that difference but also any sweat equity you could have gained by doing the repairs yourself.
Buyers wanting to purchase a property “as is” expect a discount, and you will probably get lowball offers. Your buyer pool is limited, and this can make selling harder. Many companies specialize in distressed homes and can make offers with fast closing dates to suit your needs. They understand what an “as is” sale means and are skilled at bringing this type of home back to peak condition. You can offload your home to them and save on the time and cost of repairs while moving on to your next place. Make sure to weigh all the pros and cons to understand your position.
