If you are trying to sell your home and worried about costly repairs, you might be wondering what your options are. Do you have to re-do the kitchen and repair the roof? Or can you sell your home as-is? It can be tough to sell your house as-is, but it is not impossible. There are some legal responsibilities you will have, and it might be harder to sell, but you do have options!
Why Would Someone Sell Their Home As-Is?
There are many reasons you might want to sell your home as-is. Maybe you are dealing with a divorce and want to skip the long process of fixing repairs in the house. Perhaps you are dealing with probate or had an unexpected inheritance of a home you were not financially ready for. You might have a new job in another state and need to leave fast. Whatever the reason might be, there is a lot to think about when it comes to selling your home as-is.
Just list it as-is
Your first option is to list your home on the market and let potential buyers know it is in as-is condition. Selling your home as-is might deter some buyers, but you have to be upfront about the house and its requirements. Do you have an unfinished basement? Is the backyard needing some repair? Whatever it is, make sure buyers easily have access to that information. Just know that you will have multiple house showings and inspections, so the more upfront with information you are, the better.
Sell to a Real Estate Investor
You could sell your home to a real estate investor like The Trusted Home Buyer. Real estate investors will buy your house as-is, and you can negotiate the price. This option allows you to receive a fair cash offer and skip out on costly repairs. This option also allows you to avoid time-consuming home showings, long months on the market, and constant inspections from buyers.
Make little changes
You could hire an inspector yourself and see what small changes you can make to avoid a big spend, but still fix some aspects of the home to be better equipped for a buyer. Even fixing holes in the wall and carpet tears can add value to your home. You might not have the funds for a new roof, but small repairs add up in a big way. And to make the most of showings, be sure to stage your home by having a clean house, simple design, and cut the clutter.
Pros and Cons
There are benefits to selling your home as-is, but of course, there are cons as well. It might be smart to have a contractor/plumber or whatever you need, estimate repairs. It might not cost as much as you thought, and doing some repairs will add value to your home and up the asking price.
With that being said, here are the cons of selling your house as-is;
- Might get a lower offer on your home.
- Might deter potential buyers.
- It could be harder to sell your home.
- Buyers will try to low-ball you.
Here are the pros of selling your home as-is;
- You won't have to come up with the money to repair your home.
- You won't have to deal with construction and repairers, while already stressed about selling your home.
- You could sell to an investor and skip out on low-ball offers and months on the market.
If you are selling your home as-is, you might have to fill out a purchase agreement that clearly outlines the home's repairs and needs. YOu are legally required to disclose anything you KNOW is wrong with the house to potential buyers and your real estate agent. Your real estate agent is also obligated to disclose any possible shortcomings of the home, so be sure to list everything you know upfront.
So What's the Best Option?
The best route you should take all comes down to your timeline and goals. Do you have the time to allow your house to sit on the market? Do you need to move fast and can't sit around waiting for showings? If you are in a hurry and want to avoid listing your home, find a real estate investor to give you a fair cash offer and a quick closing date. If you have time to do some minor repairs and list your home, do that. The answer depends on what will work best for you. If you are having trouble deciding, you can always list your home first and see how it goes. If it ends up taking to long, you could sell to an investor later on.
Should I Finance the Repairs?
Again, this boils down to your financial abilities. You can also weight the pros and cons of moving forward with the repairs. Will paying for a couple of thousand dollars in repairs help you make MORE money when you sell? Do a cost analysis and estimate of repairs, then find out the potential revenue increase and decide there. If you have the resources and time, go for it! However, if you are reading this post, the whole point might be to avoid any repairs at all to check into the other options we listed here. If you are feeling stuck, reach out to an expert and weight your options. The most important thing to consider is your needs, time, and budget.
The truth is, selling your home as-is can have a downside, but it's not going to completely ruin your chances of selling your home for a fair price. You do have options, so make sure you check them all out and find the best choice for you. If you have any questions, we are happy to help! Selling a home can be stressful, and that especially true if you are dealing with costly repairs. We get it! You don't want to get a low offer just because you are selling your house as-is. Be sure to shop around and weigh your options.