Guide For Selling A Home In As-Is Condition
There are some homeowners who will face the decision whether to sell their home in as-is condition or not. There are a variety of reasons why homeowners grapple with this decision. Below are five of the most common reasons why sellers decide to sell a home in as-is condition.
- Seller has no money to make repairs/changes
- Seller has no motivation to make updates or repairs
- Seller is going through a divorce
- Seller is dealing with a major life altering event, such as health issues
- Seller feels that making the updates and/or repairs will not be worth the investment
While these are only 5 of the most common reasons a seller decides to sell their home in as-is condition, there are more. Regardless what the reason is, it's important that if you're thinking about selling a home in as-is condition, you still take the proper steps.
For over 5 years working as a Webster NY real estate agent, I've encountered several homeowners who are thinking about selling their home in as-is condition. I always share with homeowners considering an as-is sale 4 easy "rules" to selling a home in as-is condition.
Even though the 4 "rules" listed below are technically not required to sell a home in as-is condition, following them will make a huge difference. Ultimately, following the 4 "rules" below will lead to a successful as-is home sale.
Hire A Real Estate Agent Who Has Experience Selling As-Is Properties
Hiring a real estate agent with experience is important whether selling a home in perfect condition, average condition, or in as-is condition. If you're deciding whether to sell a home in as-is condition, it's extremely important to keep in mind that hiring an agent with experience selling as-is properties will go a long way!
Since selling a home in as-is condition is different than selling a home that is in pristine condition, there are certain Realtor® interview questions to ask as you're interviewing to sell your as-is condition home. Below are some of the best questions to consider asking during your interview.
- How many as-is condition homes have you sold in the past?
- How many in the past 12 months?
- How do you market properties that you're selling in as-is condition?
- Can you provide any examples of negotiations during an as-is sale?
- Do you have any past clients or references that you could provide where you sold their property in as-is condition?
These 5 questions can go a very long way in helping to ensure you hire an agent who has experience selling as-is properties.
Decide If It's Worth Making Minor Repairs/Updates
While the ultimate goal of selling a home in as-is condition is to not spend a penny, sometimes it potentially makes sense to make some minor repairs and updates. If you're unable to make any repairs because you have no money, obviously this "rule" will not apply to you.
It's pretty clear that spending $20,000 on a new kitchen is not the type of minor repair or update that should be considered when deciding whether to sell a home in as-is condition. There are some minor repairs and updates that can go a long way and potentially put more money in your pocket.
For example, if a simple and relatively inexpensive upgrade such as replacing a few light fixtures and painting a few rooms is going to allow your home to sell for more money, it maybe worth spending the money.
Another great reason to hire an agent who has experience with selling homes in as-is condition is they know how to help homeowners decide if making minor repairs and/or updates is worth it. If an update that is going to cost $200.00 is going to lead to $2,000 higher sale price, obviously making the update makes sense.
Accurate Pricing Is Critical When Selling A Home In As-Is Condition
Accurately pricing a home is arguably the most important factor that decides if a home sells or not. When you're selling a home in as-is condition, accurate pricing is vital to the success of the sale.
Since you're selling a home in as-is condition, it's very important that you keep in mind your home is not going to sell for the same price as your surrounding neighbors. For that matter, it likely won't sell for anything close to your neighbors.
Whenever I'm discussing pricing with a homeowner who is selling their home in as-is condition, I always explain as-is pricing strategies. It's important to first determine what your home would be worth if it was in pristine condition. From there, you must make deductions for repairs or updates that would have to be made. Once you make these deductions, you should be relatively close to where you should list your home.
For example, if pristine condition homes in a given area are selling for $250,000 and your home needs a new roof, new kitchen, and new bathroom, you need to determine the cost of these repairs and/or updates. Let's say the cost to make the repairs are roughly $50,000, you need to understand that your home will be worth around $200,000 if you're selling it in as-is condition.
One of the biggest mistakes that is made by homeowners selling their home in as-is condition is that they aren't realistic. Many of these unrealistic homeowners believe that their home, which maybe in poor condition, is worth much more than an experienced real estate agent is indicating.
Another area where homeowners who're selling their home in as-is condition fall short is when a buyer requests repairs. Remember, just because you and your real estate agent are indicating an as-is sale doesn't mean a buyer will not make their offer contingent on a home inspection. Buyers have the right to have a home inspection.
It's possible even though you're indicating an as-is sale that a buyer is going to request repairs after their inspection. It's important to review any requested repairs as some of them may not be a large expense, in fact, many of them potentially could be done by you or friend. It would be silly to lose a home sale over some clogged gutters on your home. Yes, some buyers will make requests as simple as cleaning gutters before closing.
Selling a home in as-is condition can be tricky. There are some buyers that will avoid as-is home sales like the plague. It's important that if you're selling your home in as-is condition you keep the above 4 easy "rules" in mind. These "rules" can be the difference whether you have a successful as-is home sale or not.
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