Home sellers have a lot to think about. They must come up with an asking price for their home and start to market the property.
They must get things in order for open house showings and come up with an asking price that’s appropriate for the current market conditions.
Some home sellers choose to sell their homes “as is.” This usually happens in situations where a particular property needs renovation or repairs.
The sellers have chosen not to make those changes themselves before putting their homes up on the market.
Selling a home in California “as is” may require a little extra work. However, it can still be done in most instances. It’s just going to take a little extra work and attention to detail.
Here are a few things to keep in mind if you’re planning to sell your home “as is”:
1. You can save a significant amount of money.
One of the main reasons why people decide to sell houses “as is” is that they’re saving hundreds or even thousands of dollars on upgrades and repairs.
This is an especially appealing option for property owners who don’t want to go deeply into debt. They may even find a highly motivated buyer who wants to move in a hurry and doesn’t mind tackling the items that need attention.
2. It’s a huge time saver.
Renovations and repairs take time. The average remodeling or repair project can take several months or more to complete.
If you don’t have that kind of time, you might want to consider selling your home “as is.”
Just make sure that you disclose why you’re selling your home this way so that sellers fully understand the risk and their responsibilities.
3. You might not make as much money on an “as is” sale.
One of the downsides of selling a property in this type of condition is that potential buyers are more likely to want to negotiate for a lower price.
Buyers often see this as a tradeoff for having to do the renovations or repairs themselves.
If you don’t want to make the changes yourself or need to move quickly, you may have to make this concession to get your home sold in a timely manner.
4. You may receive fewer offers on your home.
Properties listed “as is” tend to receive fewer offers. There may be a few people interested in a home remodeling project.
You might also receive offers from people who are home flippers or real estate investors who are planning on reselling the home later for a profit.
However, most of the general public will probably shy away from an “as is” home. Some lenders won’t borrow to buyers for homes that are listed “as is.”
5. You can work with a realtor if you want.
Many “as is” home sellers prefer to sell their homes all by themselves. They take care of the listing, marketing and other important functions.
You don’t have to go it alone if you don’t want to. You can hire a real estate agent to assist in listing and marketing your property.
Most realtors are experienced with these types of transactions. The information they provide can be invaluable for getting your home sold.
6. You may be responsible for certain state or federal disclosures.
There could be specific disclosures on either a state or federal level that you will be required to disclose. For example, you may have to mention if lead paint or asbestos was used or is currently in your home.
You can check the requirements online to know what your responsibilities are. Failure to disclose such information could result in penalties, fines or lawsuits.
Resources Links to help you through COVID-19
7. Have your home inspected before listing the property.
It’s a good idea to have your home inspected before listing it for sale. A typical home inspection costs under $500 and only takes a few hours to complete.
You’ll know exactly what needs attention so that you can get estimated repair or renovation costs for each item. This data can be a great benefit for both you and potential buyers.
8. Set a realistic asking price.
The home price that you establish should be realistic according to the home’s condition and current market trends.
Setting a price that’s too high could cause your property to remain on the market unsold for longer than expected.
Setting a price that’s too low could make you start fielding offers or negotiating with interested parties before you’re ready to move.
Look at the selling prices for similar properties in your area and the average costs of the repair or renovation work that’s needed on your home. This information should help you set a selling price that’s reasonable and fair.
If there are small projects that you can handle, you might want to take care of them yourself or hire a professional to complete the work for you.
You’re probably better off leaving larger projects alone, especially if you still intend on listing your property “as is” or are in a hurry to move your home. Examine the report from the home inspector to determine what you can and can’t realistically accomplish.
Potential buyers will undoubtedly have plenty of questions. Be sure to address their concerns in a timely and comprehensive manner.
Disclose everything that’s required and communicate with them regularly throughout. Don’t intentionally omit anything. The more upfront and honest you are, the more likely they are to make an offer on your home.
Selling a home “as is” is never easy. There are bound to be obstacles, inquiries and roadblocks along the way. Perseverance and a positive state of mind is essential to success.
When you’ve found an interested party, who doesn’t mind making the necessary changes or upgrades, work with them as much as possible, keep in mind the overall goal is to get your home sold.
Sticking to the game plan can get your home sold before you know it. The stress and worries of keeping up with your property will no longer be on your plate. The buyer will be responsible for those items. You’ll receive a check for the purchase and can move on to the next phase of your life.
📞 Have Questions? Ask The Chris Eckert Real Estate Team
Give The Chris Eckert Real Estate Team a call today at 650.627.3799 to learn more about local areas, discuss selling a house, or tour available homes for sale.