Selling your house As-Is may sound like a great idea and it can be! If you happen to be selling your house in the midst of a strong seller’s market and you have a good real estate agent, you may just wind up selling your house “as-is” and making no repairs. As a seasoned real estate agent and an active real estate investor in Dayton, Ohio, I have bought and sold many houses in “as-is” condition. Keep in mind, just becasue I buy and sell houses in “as is” condition doesn’t mean that you should or shouldn’t do the same. There are many factors that go into buying a house and even more factors when you’re buying or selling your house “as-is.”
Selling Your House “as is”
As a seller, there are a few important things to think about when selling your house “as is.” First, if you are looking for quick cash, you should contact a local real estate investor that advertises “We Buy Houses Cash.” Second, if you’re attempting to sell your house in As-Is condition, your listing price should reflect this. If you know that your house needs repairs or fixes, you will need to disclose this information to all potential buyers. If you have known repairs and fixes and your listing price is too high, you will sit on the market while continuing to make monthly mortgage payments.
There are some benefits to selling your house as is, especially when we are in such a strong seller’s market. One benefit is that listing your property for sale at a discounted price point will hopefully lead to your property selling fast. Quick house sales are appealing becasue the quicker you sell your house, the sooner you can stop making mortgage payments. No property owner wants to have an empty house sitting on the market while continuing to make monthly mortgage payments.
Another benefit to selling your house in “as is” condition could be that you do not have to come out of pocket any money. As a busy real estate agent here in Dayton, Ohio, I very rarely see a homeowner (seller) during a traditional real estate sale avoid coming out of pocket any money. If your home is advertised as being sold in “as-is” condition, you are alerting all buyers who are potentially interested in your home, that you are making NO fixes or repairs. All potential buyers that show interest in your property should be well aware that your home is being sold in “as-is” condition. So, there is a great possibility that a buyer who is willing to schedule a showing on a home being sold in “as-is” condition either believes that he/she has the ability to make all necessary fixes and repairs or that the home meets most, if not all, of the buyer’s needs and they can overlook the fixes and repairs.
Buying A House “as is”
If you’re buying a house “as-is,” you should know exactly what repairs are needed and if any of them are immediate repairs, as you will need to prepare and budget for these repairs. Expecting to make fixes and repairs seems “obvious,” but you wouldn’t believe how many people buy houses and have ZERO funds reserved for upgrades, fixes and/or repairs (which neither I, nor any other good real estate agent, would ever recommend doing).
If you are thinking of buying a property in As-Is condition, use this to your advantage during the initial offer and negotiating stage. Calculate your offer using these three factors:
- Find out what similar homes within one square mile have recently sold for (area comps / comparables)
- Estimate the cost of known repairs or fixes
- Estimate the labor costs associated with those fixes or repairs
Calculate Your Initial Offer:
Estimated Sales Price of House in As-Is Condition + Estimated Cost of Known Repairs + Estimated Labor Costs = X
As a general rule, if the sum of X is less than most comparable homes, the value of X can be a solid starting offer.
Are You Interested in Buying Or Selling Your House AS-IS?
If you are interested in speaking to me about selling your house as-is, feel free to contact me via phone or text at (937) 490-9743. If you prefer email, you can reach me at firstname.lastname@example.org. I would love the opportunity to schedule an appointment with you, have a look at the property you are interested in selling and talk about your interest in selling your house in as is condition.