“As-is” is a solution when you have a lack of funds for repairs and for sellers who need to move quickly, such as for a job relocation or any other urgent reason.
Be aware, however, that the “as-is” condition mentioned in a listing can raise red flags with both buyers and their agents. Let’s take a look at two things to consider if you’re thinking of selling your home “as-is.”
1. An As-Is Home Shrinks Your Buyer Pool
“Today’s home buyer is drawn to a clean, bright, move-in ready home,” according to a nationwide real estate conglomerate. “Sweat equity doesn’t have the appeal it did 20 or 30 years ago,” they add.
Then, there are the lenders. FHA-backed mortgages demand that certain work be performed before lenders can approve a loan. By selling “as-is,” you’ll drain the pool of first-time buyers.
Even buyers obtaining conventional loans may be dissuaded from viewing the home because many lenders may demand repairs. This is especially true if what needs repair or replacement is a big-ticket item, such as a roof.
2. An “As-Is” Home May Not Sell for the Price You Want
“Invest in distressed, fixer-upper homes,” one website for real estate investors recommends. Why? Because they can pick them up for “under market value.”
You most likely understand that a home that needs work won’t get market value in a sale. But it may not even bring what you’re hoping.
We discussed the depletion of the buyer pool, so now it’s time to consider who is left bobbing around out there. The answer to that is “bargain hunters.”
This group includes investors and those willing to put some work into a home. So, be prepared to potentially sell the home for less than you’d imagined.
William Raveis Real Estate has a new option that could help you gain a higher net selling price. Raveis Refresh is a premium service designed to present your home in the best possible light. Fixing a few things here and there, from light carpentry to staging your furnishings, our expert team provides a facelift for your place with no upfront costs to you. All you have to do is sit back and let us do the hard work. How refreshing is that?
Before you make the decision on whether or not to list your home “as-is,” let’s talk. Give us a call or text: 617-416-8173.