This one must come up 1 of every 4 listing consultations that I perform in the Cedar Rapids area. And I know that I am not alone, because if I search for the terms, "as is" in our local MLS, it comes up 103 times out of 2233 active listings, or about 5%, in our Cedar Rapids MLS. Most of these "as is" properties are also estates, meaning that the owners have passed and the executor is in charge of selling the property. But many are just sellers that don't want to make any repairs on their home.
Can I list my home as "as is"?
The answer depends on why you are asking. If you want to sell your home "as is" because you:
are not able to afford to make the repairs on your own, or
you can afford it, but you just don't want to put the money into a house that you are intending to sell, you need to rethink your position.
Depending on the repairs that are needed, you may be better off fixing or updating those items.
Let me give you an example: I can see from looking at the front of your home that the roof needs to be replaced. You don't want to spend the money, $3000 says the estimate, to replace the roof prior to listing. It seems to be a good idea right? Well, not so fast. Because you are not replacing the roof, you are cutting the available buyer pool in half. Why? Well, your home falls into a price range that is very desirable for an FHA loan. But we cannot list your home as being available to FHA financing due to the roof. So buyers that are looking for homes that meet that loan and condition criteria will not be looking at your home at all. The advantage of marketing to the FHA first time homebuyer is that they are typically willing to pay MORE, or closer to your asking price, for your home in order to have closing costs included.
Then you need to consider that the average conventional or cash buyer is still going to expect a credit towards the roof, whether it be for $2000-$3000. And no one ever pays full price in this market since there are so many properties to view!
Here is another example: You have lived in your home for the past 31 years and it still has the original carpet and wallpaper throughout. You have been forced to move to assisted living and you just want to price your home "to sell" meaning that it is priced aggressively under the assessed value. The problem is this, a buyer does not want to take on your shag carpeting and metallic wallpaper throughout, not even at a reduced price. As a homeowner, sometimes it can be a great investment to neutralize your home by adding new carpet and getting rid of the wallpaper for a neutral palette that will appeal to a broader market.
These examples happen in my market on a daily basis and it is best to ask your real estate professional their thoughts on what they think will sell your home the fastest! There are investors out there that are looking for bargains, but do you really want to give away your house? The buyers that are looking at homes right now, in most cases, have many properties to choose from and most buyers will choose a property that is ready to move right in with minimal fuss.
Call me for your free initial home consultation and let me give you a choice of an "as is" price and a market price with repairs so that you can decide which one makes the most sense in today's market.
Keep smiling!
Karen
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