Every Friday we give fast answers to quick questions about home selling, buying, anything about real estate!
Today’s Question: What is an “As-Is” home sale?
What is an “As-Is” Home Sale?
An “As-Is” home sale means that the seller is unwilling to do anything to the home or make any improvements to the home get it ready for sale. Furthermore, any improvements or updates to the home after home inspection are at the buyer’s request.
When should a seller use this?
Primarily, this is an option when there are major issues with the home and the seller doesn’t have the money to make repairs, or when the seller is okay with taking less money for their home in lieu of doing these repairs. The seller could want an ease of sale; perhaps it’s an estate sale, or the seller needs to get out of town expediently. These are cases where an as-is home sale would be beneficial.
When Shouldn’t a Seller Use This?
If you’re looking for top market value, it wouldn’t be in your best interest to do an as-is sale. To bring your home into the best-selling standards to get top dollar, you should be doing some of the things that your Realtor may recommend to improve your home. Also, you shouldn’t do an as-is sale when you have a perfect home. There’s no reason to put the tonality of an “as-is” sale out to the marketplace, as it can be perceived very negatively by buyers who will assume that there’s a problem with the home. So, if you have a perfect house, don’t market it as an as-is sale, as buyers are going to take that negatively. And clearly, don’t do it when you know that the buyer for your home is going to need financing, and the financing may need some repairs made or something done to the home to make it financeable.
Pros of an As-Is Sale:
- You’ll save some money on repairs and updates.
- You may have less contingencies in the offer.
- You could have a cash buyer, or a no-inspection buyer.
Cons of an As-Is Sale:
- Prepare to accept less money.
- Prepare to work with mainly investors.
- Prepare to have some challenges if there’s any financing needed on the property.
Remember, as a seller, you always have the duty to maintain your home regardless of your as-is statement. If something does break, like the furnace, or a roof leak during the sale process, you still have a duty to maintain the property.
We hope that helps! If you have any further questions about as-is sales, or any home sales, give us a call at 978-494-0346!
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