What's a nice home like you selling As-Is? That's a great question we often get from buyers. Why are they selling this home as-is. Wait, is something wrong with it?
Home sellers have a lot of decisions to make, some pretty big, some a lot smaller. By choosing to sell their home as-is, it may offer them relief when it comes to worrying about negotiations. Home owners wonder, do I really need to fix this up just to sell it? Is that a big waste of my money? Many feel selling as-is gives them less hassle and aggravation.
Remember, buyers can still do a full home inspection after their offer is accepted for their peace of mind. But they need to be aware the home inspection is a moot point, as the sellers will not be required to fix anything that comes up from the inspection report. Buyers looking at an as-is home purchase need to be ready to buy the home without any repairs.
A home inspection report on an as-is home sale will reveal big and little issues, in some cases it may prove to be a deal breaker, especially if the buyers are first time buyers and their agent does not inform them how nit picky inspections truly are. Imagine getting a 56 page inspection report and realizing every single broken light switch, loose outlet cover, and knicked baseboard was on the itemized sheet! It is overwhelming.
No home is perfect, even the new construction homes. Some homes may need a lot of updating or cosmetic fixes, and some may need entire tear off roof or all new windows. Some homes need a little TLC with paint or carpet. Having a home inspection gives the buyer added information vital to making a sound decision on the purchase.
Not Getting Top Dollar
On the other hand, some owners find it hard to accept a lower price point. Those homeowners who have invested back into their homes now want to recoup top dollar for their property and go to great lengths to update kitchens, baths, and basements, to get it. This is not the right situation for an As-Is sale.
A full home remodel could set a homeowner back tens of thousands of dollars, of which they may get 80%-90% back when they sell. That means if they put in $100,000 of renovations, they'll add on $80K-$90K of value on their home, so it is close, but not quite a 100% return on their investment.
Given the proper market place, this can increase the home's value enough to make it worth it. If you're in a hot selling ZIP code, you'll want to stack the deck in your favor and put in the money. But if you're in a stable ZIP code, it may not be in your best interest to rack up debt to fix up the place.
Custom fit solutions
There are a lot of reasons that a home is selling as-is. Some homeowners have limited budgets, or would rather save their money for other things instead of repairing their property. Other folks are downsizing, or relocating, or simply do not want the hassle of renovations. Still other homeowners are underwater with their mortgages and don't realize they can still sell their home as-is.
But selling a home As-Is will likely impact the starting point for a listing price, because it must reflect the overall condition. By pricing it accurately from the start, buyers will see a great deal and will make offers for it.
How to sell your home As-Is
The first step is to set up Pre Listing Appointment. For example, in my area of Kane county, we prefer a boots on the ground approach, which means we come to you to look at the home in person. Don't worry if it's a mess, we're not interested in the moving boxes or clutter.
Our job is to verify the overal condition of the home, and get an idea of where it falls on the scale of needing minor work or major work. To be clear: we won’t demand you finish the basement, update the wiring, or paint the walls, before we list your property for sale. We understand that being sold AS-IS is very often best way to go when dealing with a property that needs updating. Selling as-is means less worry on getting stuck on repairs from an unhappy buyer. There is no need to fix anything or worry about finding extra money for repairs! A home selling as-is will have a price point that reflects the current condition.
Then we'll walk your through the listing process so you know what to expect. A home being sold as a regular sale, As-Is, may take a bit longer to sell than a showcase home in pristine condition. Once it's listed and active on the market, we follow up with the home owners on agent feedback, showings, market conditions, updates on the neighborhood, and respond to all the new questions that come up.
Still not convinced?
But if a home improvement project is on your To-Do List, budgeting for those items is essential. After all, an estimate is just an estimate. Every remodeling project may have various costs, depending on your budget, materials, contractor, timing and even your location.
Popular Home Remodeling Projects
- Sand and refinish wood floors $2.50-$4.30 per square foot
- Install ceramic tile floor $16-$27 per square foot
- Install vinyl tile floor $4-$6 per square foot
- Install wall-to-wall carpet $5-$8 per square foot
- Build single car garage $8,000-$12,500
- Build double car garage $10,000-$14,000
- Replace warm air furnace $2,500-$4,800
- Replace electric heat pump $3,200-$4,600
- Replace central air conditioning system (electric) $2,500-$4,000
- Replace central air conditioning system (gas) $3,600-$4,500
- Replace hot water heater $350-$600
- Attic/basement insulation $1.75-$3.50 per square foot
- Install new septic system $4,000-$6,000
- Install sump pump $500-$600
- Asphalt/fiberglass shingles installed over existing shingles $2-$3.20 per square foot
- Remove existing shingles and install new $2.75-$4.75 per square foot
- Install new storm windows $70-$145 each
- Replace existing windows $250-$700 each
- Entry door replacement (fiberglass), approximately $3,000
- Entry door replacement (steel), approximately $1,230
- Garage door replacement $2,000
- Build addition $80-$135 per square foot
- Minor kitchen remodel, approximately $20,000
- Major kitchen remodel, approximately $57,000
- Bathroom remodel approximately $16,700
- Finished basement with 3/4 bath, approximately $65,000
What are your options?
If you're on the fence about whether to sell as-is or not, talk to a trusted local real estate expert. Ask them to run a report for the most recent sales with homes that are updated and also a report on those that are not.
Let's say you've heard homes are selling fast in St. Charles, but not in Elgin, IL. Perhaps your friends or neighbors noticed a trend. If you live in 60174 and homes are flying off the shelves in under 7 days on the market, then it might be worth your effort to reconsider remodeling. If your market times are running a 60-90 days, like in 60123 for Elgin, then it still might be worth it.
All real estate market are local, so be sure to talk to someone who is not only a local expert, but will personally walk through your home to give it a thorough review.
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Jennifer Kinzle, Premier Agent
Charles Rutenberg Realty of Naperville, IL
Fox Valley Homes Specialist, 630-854-4360
About me: I take a deep dive into coffee, chocolate, and real estate in the Fox Valley area and enjoy blogging, selling homes, finding great investments, and helping buyers with all their questions. Find me on Facebook, Instagram, Twitter and LinkedIn.