Question:
“Our house needs some minor repairs, but we want to sell it completely As Is and we found an agent who promises she can do that…”
Answer:
Selling As Is ain’t as easy as it’s cracked up to be, despite what some agents may promise you.
So here’s what you need to know about selling As Is:
1. First of all, you may net more money if you do some profitable work in advance, especially clean up, cosmetics, and perhaps some repairs. It’s possible that you could spend a few hundred or a few thousand dollars and get back several times that amount.
BUT…there’s more to life than money, so you may choose not to do anything.
2. I don’t know what your home needs, but there are certain issues that makes banks shy away from making a regular mortgage. Things like an obviously bad and leaky roof. If you don’t address those, then you’re limited to cash buyers or buyers who get renovation mortgages (see the financing question below), and that almost always means a lower price.
3. It’s difficult if not impossible to write an airtight contract clause that legally binds a buyer into buying As Is no matter what their inspections find. And if you did write such a clause, only a fool would sign it.
4. Marketing your home As Is may send a message that your home has some problems and may scare off some buyers.
5. Some buyers agree to buy As Is without really thinking about it, then they ask for repairs or credits during escrow.
6. Similar to #5, many buyers sincerely and thoughtfully agree to buy As Is based on what they see walking through the house. But when they have the home inspected and learn of more defects, they feel justified in saying that they didn’t know about THOSE newly discovered issues and ask for repairs or credits.
7. As Is does NOT mean that you don’t have to disclose issues that you know about.
That’s all I’ve got to say on that…
