Selling your house ‘as is’
When I meet with people that want to sell their homes, I often get asked the question, “should I sell my house as is”
First let’s define what “as is” really means.
Selling “as-is” means selling the house in its current condition or as it exists immediately prior to closing. If the property has any damage or defects, the seller will not make or pay for any modifications or repairs.
When you put your house up for sale and it’s advertised ‘as is’, you are telling buyers upfront that there could potentially be something really wrong with the property and you’re not willing to put money into getting the problem fixed. Or a buyer may surmise that the house hasn’t been properly maintained and there might be a lot of deferred maintenance. If a buyer gets this message upfront, they will likely come in with a very low ball offer and assume there is something really wrong with your home.
There are a 3 scenarios where selling your home ‘as is’ is appropriate.
- if the property is an estate sale. Meaning someone has passed away and their family is selling the property. If that’s the case, then the home should be advertised for sale not only as is but also as an estate sale.
- If the home is being sold in a distressed sale- short sale or foreclosure. In these scenarios a buyer expects there to be deferred maintenance and the pricing is already built in to account for the all work that needs to take place.
- If the house is a teardown. Meaning there’s no value in the home other than the land value. In this scenario a builder will come in and often pay cash to buy the house, tear it down and build a brand new home in that lot.
In general, I don’t recommend selling a property as is unless it falls under one of the three criteria. It can be a hassle to fix the little things or even some more major components, but ultimately if you want to net the most amount of money in the sale of your home, it’s important to maintain and fix issues before they arise during inspection.