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Is Selling my home "as-is" an option?
Dated: April 17 2023
Are you considering selling your home?
It's a big decision that comes with many other choices, causing stress and procrastination for the owner. One option to consider is selling your home "as is." This means that the buyer will purchase the home in its current condition, without asking for any repairs. While this may seem convenient for the seller, it may not result in the highest possible sales price.
Regardless of how the home is sold, the seller is required to disclose all defects, including repair history, condition of systems and appliances, water damage, pest infestation, radon, and other things that affect the value and livability of the home. From a buyer's point of view, they may think there is something wrong with the home, resulting in them avoiding the home completely or making a substantially lower offer to cover not only the known issues but also the unknown ones.
It would be reasonable for a seller to allow a buyer to make inspections to determine what the condition of the home is and what kind of expenses they might be faced. In some situations, based on provisions in the sales contract, the buyer may decide not to continue with the contract after making inspections. This could extend the marketing time for the seller by having to find another buyer.
Selling a home "as is" is like wholesaling the property. Even if the seller doesn't want to go through the effort to make major improvements, they still need to consider things that will ease the buyers' concerns about the home. These include a thorough cleaning, decluttering, yard cleanup, and repairs on known issues like leaking faucets, lighting, doors, and appliances to name a few examples.
If this path is taken, the cost to the seller will be not realizing the maximum sales price compared to comparable homes that have sold recently in the area that has been updated. There are pros and cons for both sellers and buyers when it comes to selling a home "as is." Some of the pros for sellers include not spending money to prepare the home and the possibility of selling quickly if priced properly. However, the cons include not maximizing proceeds from the sale and there is less competition from other buyers.
It's important to keep in mind that there are companies who will buy your home for cash. While their ads may seem appealing, realize that these companies are "for profit" and expect to be able to recoup the money paid to you, pay all repairs, renovations, and sales expenses plus make a profit for the risk taken. As a homeowner, you will always realize more of your equity by approaching it with a risk/reward analysis to determine how to sell it for the highest price with the least expenses. Your real estate professional will act as a fiduciary to put your best interests ahead of your own. It is worth the effort before embarking on an "as is" scenario.
Do you still have questions about whether this option is right for you? The knowledgeable real estate agents with the Knoxville Living Group at NextHome Makers City are here to help. Just give us a call to schedule a meeting.
Deanna graduated from the University of Tennessee, where she was a member of both the Equestrian and Horse Judging teams. Following graduation, Deanna joined a local restaurant company and worked as p....
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