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When you decide to sell your home, it’s beneficial to make a list of renovations and repairs that could help increase its value. This can include painting a dated room, putting new carpet down, or fixing a leaky roof. But if you don’t have the time or ability to make repairs, you may be able to sell your home as-is.
What does as-is mean?
Selling a home as-is means that you will not make any repairs to the home before you sell. The buyer knowingly buys the home in its current condition. Does your house have water damage, a bad roof, or foundation issues? In an as-is scenario, you wouldn’t necessarily need to make these repairs. However, the drawback is that you may need to sell your home below its estimated market value.
Remember that as-is doesn’t mean “no inspection.” Potential buyers still have the right to a home inspection, and you must disclose any issues with the home.
Reasons to sell as-is
There are a few reasons why you may want to sell your home as-is, including:
- If your home maintenance has fallen to the wayside, or you lack the funds to complete all the needed repairs, it can be beneficial to sell your home as-is.
- Another reason is if you want to sell the home quickly. Say you get a new job across the country. In this situation, you may need to sell the home ASAP, making a list of renovations unrealistic to finish.
- Finally, if you inherent a house, selling as-is could be a good option. You may not know what issues the house has, and this can free you from having to make repairs at the request of a potential buyer.
Who wants to buy a home as-is?
You’ll still have a market interested in your home if you decide to sell it as-is. House flippers are one such group often on the lookout for as-is properties. By buying a home below market value, they can make repairs and an eventual profit after reselling the house.
Depending on the number of repairs needed, some buyers may jump at the chance to customize your home and make it their own. There are also buyers who may not have qualified for as large of a mortgage. They could see your home as an opportunity, and will work through the repairs over the next couple of years of living in the home.
The benefits of making repairs
One of the biggest reasons you should consider making the repairs to your home before selling is simple—a well-maintained home will likely sell quicker. It is more appealing to buyers, so there is a chance you could increase your profit from the sale.
Be sure to crunch the numbers before selling your home as-is. Consider the cost of a repair with how much it will affect your selling price. A home that needs a new roof is a good example of a repair you may debate making. Some buyers may be scared away from your as-is home if they know it needs a new roof, and the potentially hefty price tag that comes with it. If you know the new roof will cost $10,000, that could be the difference between selling your home near market value or well below.
There are several simple repairs and renovations you can do to your home to increase your selling price. Here are a few suggestions:
- Repairing holes in the walls and chipping paint
- Patching any leaks
- Repairing appliances or HVAC system
- Fixing damaged floors
- Replacing broken windows
Make sure to consult with your real estate agent before making the decision to sell your home as-is. They have the knowledge to help you decide if this is the right decision for you or if certain repairs need to be made.
