You may think of several reasons why a homeowner would consider selling a home with problems, marketed in “as-is” condition.
The most obvious, of course, is that there’s no money to perform the required work. This frequently happens in probate sales where the heirs inherit a home in need of work but lack the funds to put the home in market condition.
As well, folks who need to relocate quickly for a job often just want the house off their hands so they can move on with their lives.
Although we understand why someone may need to sell a home as-is, we believe our clients need to know the possible ramifications of doing so.
So, Let’s take a look at two reasons you might want to reconsider your decision to sell your home “as-is,” and what to do if you absolutely must.
1.You may fewer qualified buyers if you sell as-is
When your home is advertised as a fixer-upper, which is what many as-is listings are, you’ll partially drain the pool of buyers who can buy your home.
Those who are getting a conventional loan may be getting out of the pool as well since many conventional lenders baulk at lending money for a home that needs significant work.
Then, there’s the fact that many buyers just won’t have the money to repair a home after moving in. Although your low price will attract the tight-budget buyer, the reality of the financial outlays after settling may prevent them from proceeding with a purchase.
Your buyer pool now contains mainly cash buyers and most cash buyers are investors – the most real estate savvy homebuyers.
They’re out for a bargain and if you hope to sell your home at all, you may end up taking an offer for far less money than you’d imagined.
2.You won’t make as much as you hope
Today’s homebuyers say they want a home that they can move right into, stick their toothbrush in the holder in the bathroom and enjoy their new digs.
So, why would a buyer want your home?
When you consider this question, there can be only one answer:
A buyer would want your as-is home because it’s cheap.
Depending on the extent of needed repairs, you will have to list your home for less than nearby homes that are in better condition. As mentioned earlier, a low listing price will bring out investors and everyone else looking for a bargain.
Be prepared to get beaten up over your price, regardless of how low it is, and to possibly sell it for less than you’d hoped.
It’s quite possible that it may be more cost-effective in the long run to make the necessary repairs so that you can list at a higher price.
This is something you should speak with your agent about.
If you must sell your home as-is
We understand that certain home repairs may be financially out of the question for some sellers and they simply must sell the home in its current condition. Here are 3 tips to help:
Stage & Clean the home
Appearance matters more in real estate than most other industries. With attention to increasing the home’s kerb appeal and some fresh paint and a thorough scrubbing inside, even the worst home will look better.
Most buyers will decide whether or not to view your home while shopping online, so paying attention to cosmetics makes for compelling listing photos.
Sure, they’ll know that there is something wrong with the home (“as-is” advertises that), but if it looks ok, the perception will be that whatever is wrong with it can’t be that bad.
Getting more people to view the home in person is the name of the game when it comes to selling quickly and for more money.
If your agent ‘photoshops’ and ‘enhances’ the images, that’s okay but make sure there is no deception. Don’t let the images be misleading by covering up cracks or ‘remove’ overhead wires and so on.
Consider a pre-sale home inspection
Sure, you have a good idea of what’s wrong with the home, but there may be more, or less than you imagine. A pre-sale home inspection will give you the definitive answers you need and will go a long way in showing potential buyers that you’re serious in your desire to be completely honest about the home’s condition.
Plus, if you supply the buyer with the inspection results before accepting the offer, you’ll be able to weed out those that will eventually back out, after they have their own home inspection.
Protect yourself by disclosing all known issues concerning the home and the neighbourhood. Yes, it may feel as if you’re betraying yourself, but disclosure is important if you want to avoid running into trouble later.
If you find yourself in a situation where you need to sell as-it-is, call us because you’ll benefit from our experience. We’ve done this before many times.
Bonus Tip: Get rid of stuff you no longer need. It will make moving easier anyway.
Call local charities or church to donate uesable items.
Check these sites:
Recycling All Products – Recycling Near You & Planet Ark
Recycling – Recycling at Work & Business
Recycling Electronics – Electronic Recycling Australia
Recycling Electronics & Appliances – www.ecyclesa.com.au
Recycling Televisions & Computers – Department of Environment & Energy
To find out more, you’re welcome to call 08 83961100 to arrange a chat with people that care.
Alternatively, Book a Free Consultation or Get Your Home Value Here. You’ll be in Safe Hands!
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Regards Eriks & Team Plaza Real Estate