Each year, about 1.2 million homes become available for sale in America. In some cases, these properties get listed for sale “as is.”
This type of real estate transaction is common in all market types. Yet, there are quite a few differences that occur during the listing and selling process.
Read on so you can know exactly what to do if your thinking about selling a house as is.
What Does Being Sold as Is Really Mean?
The as-is meaning in real estate defines the selling or buying of a home in its current condition. This means not to expect that any changes or improvements will be made to the state of the home.
It’s important that both the buyer and seller understand the terms of this type of sale. There will not be any discussion about making extra repairs to the home.
When you buy as-is, this transaction type is often protected by a contract. This ensures the buyer is fully aware that they are buying the home as-is.
These extra terms are stated in the sale agreement. This also helps protect the seller should a buyer find fault with the home after a sale.
As-Is Homes Are Not Always in Bad Condition
It’s important to note that selling as is doesn’t always mean that there is an issue with the home. Many homeowners choose to sell a home this way due to a special situation or life change.
Listing a home for sale as is can be a great option for someone who has inherited a home. These homeowners often do not have time or extra finances to make small repairs or cosmetic changes. They may be unable to go through the effort, energy, and stress of the home selling process.
In some cases, the seller has never lived on property or is from out of state. So, they may be unaware of issues with the home. They may need to make a quick sale on the home.
Regardless of whether the home has issues, many buyers will still have their own opinion on an as-is home sale. They will likely believe there are negative or unfixable issues with the home. This can make it much harder to market the home.
For these reasons, an as-is home often gets fewer interested buyers. People can be wary when dealing with these types of transactions. So, your home may stay on the market longer than normal.
Most homes tend to sell within 99% of their asking price. Yet, selling as is can lead many interested buyers to submit low-ball offers.
So, a seller should expect this when listing their home. This is why many sellers choose to go with home buying services that offer cash for a quick and easy sale.
Selling As-Is Means an Upfront Process
A real estate as is sale does not mean you’re allowed to misinterpret the condition of your home. As is in real estate terms call for the buyer to be open and truthful about any defects of the home. This includes answering buyers’ questions about the home’s condition without being dishonest.
The seller cannot try to hide known issues with the home. This includes water damage, a leaky roof, or problems with flooding. These problems should be factored into the asking price of the property.
Other issues that should not be hidden from buyers are mold growing in the home. This also includes termite damage, structural issues, and electrical or plumbing defects. You should also disclose if the home has loud neighbors or other obnoxious noises.
Honesty is important for the legal process of selling as-is. The seller and realtor are both responsible for disclosing any issues with the home.
Realtors are held to higher terms for disclosing a property’s defects or legal issues. Actual disclosure terms will vary depending on the state the home is being sold in. Yet, disclosing about the home keeps buyers from trying to make legal claims after a sale.
An Inspection Should Still Be Part of the Process
An as-is house sale contract will often include a pre-sale inspection as part of the process. This is more for informational reasons than to address concerns or repairs. Yet, it’s still best for buyers not to waive the inspection.
The inspection step helps the buyer feel more informed about the home. This makes it easier to decide if it’s a good real estate decision for them. Inspections may also bring about new issues that the buyer was not even aware of.
An inspection contingency helps to further protect the buyer. This gives them a certain amount of time to retract the offer. It means they are not obligated to move forward with buying the home if the inspection is not in their favor.
A pre-inspection is helpful before making an offer on an as-is home. This gives you a better idea of any costs that will be your responsibility once you own the home. You can also determine what you can afford to pay for the home, with any repairs factored in.
Learning More About As-Is Home Sales
As-is home sales can be beneficial for both the buyer or seller. They can save you time, energy, and money when needing to sell a home fast. A buyer can also get a great deal when looking for properties listed as-is.
Learn more about how selling your home as is can make for a smooth and easy process.