Selling A House – A How To Guide
Property sellers have to decide whether to fix up a home before selling it, which can depend on multiple factors.
As-is home sales most commonly refer to the physical part of the home, but it can also refer to the deed or title of the home sold in some rare cases. When you sell a home “as-is,” there are no negotiations by the owner when it comes to property repairs or upgrades. As-is home sales, however, do not mean sellers can just withhold information on factors that affect the home value and livability.
Facts that need to be disclosed include foundation or structural issues, major plumbing issues, mold, and other environmental hazards in and around the home.
Selling a home as-is can be beneficial to both sellers and buyers and is the best option in many situations.
How do homebuyers see fixer-uppers?
Some buyers look for deals when buying homes in need of work and typically look to do easier cosmetic work on the home instead of major repairs. However, some companies purchase homes with major issues, but they don’t usually match individual buyers’ behaviors.
Does the owner have to make repairs?
While fixing up a home before sale can be the most profitable alternative to selling as-is, this requires investing time and money into the project and experience in implementing it, so it is important to be sure you can handle these factors before doing any repairs.
Looking at other homes for sale and the condition of those homes, calculating how long the owner has waited for buyers, and factoring in the time and cost of home improvements can help you determine what work you need to do to prepare your house to be able to compete on the market.
Selling a home as-is is not a complex process, but deciding on doing home repairs before selling it can be. It might be worth the time and money to upgrade an older bathroom or kitchen, but a house needing too many upgrades can turn away potential homebuyers.
How can I get the best price for my home as-is?
Here are some seller tips to determine home prices when selling as-is.
Calculate home value post repairs
First, determine how much the home would be worth if the repairs were done on the property. Websites that evaluate residential properties can help you calculate this easily and quickly.
Find out how much the work will cost
In estimating repairs, there is no need to feel anxious, especially when there are both online and offline guides on how to estimate the cost of your repairs.
Value the home as-is
Valuing a home as-is can be extremely challenging, as it is hard to estimate how much off the asking price a buyer should expect for repairing the home themselves. You can sell the home online if only small repairs and upgrades are needed but contacting a cash home buyer may save you both time and money if the home requires major repairs.
Keep in mind that a realtor can be a cash home buyer if selling a home needing multiple major repairs. Going directly to the cash home buyer yourself can save you the 6% commission you pay the realtor.
Are the repairs worth it?
In determining whether the cost of repairing and upgrading your home is worth it, you also need to factor in escrow fees, inspection and appraisal costs, buyer concessions, and other home-related expenses.
In most areas, these added fees will account for about 8-12% of the home’s final sales price.
Make sure these are taken care of if you decide to do the repairs yourself:
- Patch up holes in the walls and/or ceiling.
- Ensure your HVAC and appliances are in good working order.
- Replace worn or damaged carpets.
- Fix leaking or damaged faucets.
- Repair or replace damaged windows.
- Repaint walls and doors if necessary.
- Repair the roof.
- Install newer ceiling fans and light fixtures if they are outdated.
While deciding on how to sell your home can be confusing, considering all the relevant issues of selling a house as-is can help you decide based on your situation.