There's a lot of debate about whether or not you should sell your house as-is or fix it up. Naturally, the argument for renovating before a sale is that this will increase the value of your home. The question is, is this increase really worth it?
When you look at the average return on investment for most home renovations, you'll quickly notice that the ROI is never 100%. In other words, you're never going to recoup as much as you spent to remodel your home, no matter how much it increases your property value.
If you want to sell your house as-is, you're not making a bad choice. You're simply saving money in the present rather than receiving a larger sum in the future. However, it's not quite as simple as it sounds.
How do you sell your house as-is? Read on for seven tips that will really help.
1. Understand What "As-Is" Means in Real Estate
Selling a house as-is means that you, as the seller, are not going to do any work to improve the state of the property. The buyer gets what they get, and that's final.
However, this comes with a few caveats for the seller. When you're selling a house as-is, it is your responsibility to disclose the actual state of the property and to list your home at a reasonable price. Depending on your buyer, selling as-is won't absolve the possibility of negotiation over price, especially if the buyer finds more issues with the property than you've disclosed.
2. Get a Pre-Listing Inspection
How can you disclose the condition of your property to the best of your ability? Start by getting a pre-listing inspection.
Home inspectors look at things like the state of your plumbing, the visible condition of your roof, foundation damage, and other major structural details. Be sure to show them any paperwork regarding upgrades you may have made in the past two or three years if those upgrades will affect the buyer. (In other words, your inspector only needs to know that you bought a new oven if the oven is staying in the house.)
3. Disclose Any Property Issues in Your Listing
Once you put together your listing, make sure that you disclose the condition of your property in clear and simple terms. As we mentioned already, selling your home as-is doesn't mean that you can hide any issues with your property. In fact, most states have specific laws regarding property disclosures, and trying to hide information could result in legal liability.
Make sure that you familiarize yourself with your state's laws. This can serve as a guide of what you must include in your listing. However, don't leave things out that you're aware of just because it's not illegal to do so, or you're going to have negotiations on your hands.
4. Include "As-Is" In Your Listing Title
Most home buyers are not looking for a "fixer-upper." If you don't make it as clear as possible that your home is exactly that, you're going to end up with a lot of false leads.
When you're titling your listing online or in print, be sure to include the term "As-Is." That way, you'll eliminate any buyers who aren't ready to take on a fixer-upper and attract the attention of those who are.
5. Request Cash Offers from As-Is House Buyers
Your pool of willing buyers is, admittedly, smaller when you're learning how to sell your house as-is. If you want to list it on the traditional real estate market, prepare to wait quite a while before closing the deal.
One alternative that may work out much faster is requesting a cash offer from an individual or company that purchases as-is properties. This can include real estate companies, developers, and house-flippers. Find out more about what the cash offer request process looks like.
6. Work With an Agent Who Has "As-Is" Experience
If you do choose to go the traditional route, make sure that you work with a real estate agent whose experience lies in as-is house sales. They're more likely to guide you in the right direction when crafting your listing, posting your listing, and connecting with potential buyers.
Want a bonus tip for working with a real estate agent? Never say yes to allowing your agent to represent both you and your buyer. Chances are, an agent representing both parties won't be able to make choices that work out in your favor, such as negotiating for a higher closing price.
7. Set Realistic Expectations
In 2022, a lot of homeowners are excited to list because of the remarkable real estate news that came out of 2021. Homes were selling at record-high prices, buyers were offering cash, and sales were closing almost as soon as listings went out. When you're selling as-is, even in a seller's market, keep your expectations realistic.
Start with a reasonable listing price. Don't expect your home to sell at the same price as move-in-ready homes in your area. While you may get more than your property's current value in a seller's market, listing at a high price is going to slow down your sale.
Sell Your House As-Is and Skip the Costly Renovations
If you want to sell your house as-is, understand that this is a reasonable choice. No, you won't sell your home at an astronomical price--but you will save money and time on renovations and makeovers. Use these seven tips to make sure that selling your house as-is is a smooth and successful process.
We love talking real estate and our goal is to provide sellers and buyers with the knowledge they need to make a great choice. Take a look around for more real estate news, tips, and forecasts that will help you navigate selling your home.