If you can’t stand the idea of renovating and staging your house for the market, selling your home “as-is” may be the right option. When you list your home as-is, you’re telling buyers that your home will be sold in its current condition and that you won’t make any repairs or upgrades before closing.
Listing as-is can relieve a lot of the pressure and stress involved in the home selling process. Homeowners might pursue an as-is sale if they need to sell their property quickly or if they don’t have cash on hand to make repairs. As-is sales tend to involve less negotiation and can close faster than traditional sales.
Although your profits may be lower and your pool of buyers may be smaller, you can have a great experience selling your house as-is if you approach it with the right strategy. The following are the most important “do’s and don’ts” for listing your home as-is:
Do: Get a pre-listing inspection
Transparency is key when selling your home as-is. The purpose of an as-is sale is to cut down on negotiations and streamline the closing process.
A pre-listing inspection gets everything out in the open, which will minimize the risk of the sale falling through. It will also help you price your home accurately, further reducing the back-and-forth negotiations with prospective buyers.
You might hesitate to get a pre-listing inspection if you’re worried that the report will reveal major problems with your home. However, the buyer’s inspection will uncover the same problems, and it’s better to become aware of these issues as soon as possible. If the inspection is positive, you can even use it to market your home.
Don’t: Conceal problems
When you list your house as-is, you have to accept that it may result in a lower sale price. Covering up issues in an effort to raise the price can backfire dramatically.
The law requires sellers to disclose known defects with their properties to buyers. If you conceal major issues with the house, the buyer could take legal action against you. Again, transparency is the key to an easy, straightforward home sale.
Do: Work with a trusted agent
If you’re listing your house as-is because you want a quick and easy sale, it might be tempting to try to sell the property by yourself. Sellers sometimes list their homes on their own to cut down on commission costs.
However, when you’re selling as-is, working with a trusted and experienced agent is essential. Navigating an as-is home sale can be tricky, especially when evaluating your offers.
Hiring a good agent is absolutely worth the commission fee as they’ll help you get the best offer and avoid problems during the closing process. Most importantly, you should work with an agent who’s experienced with as-is sales because they’ll know how to market your home effectively.
Don’t: Overprice the home
A common mistake when selling as-is is listing the house based on its potential and not based on its current condition. If your home is in great shape and you have a strong inspection report to prove it, you can still get an excellent price when selling as-is. If you know the property needs work, you have to factor those repairs into the asking price.
Another classic mistake is overpricing your home in anticipation of getting low-ball offers that you can negotiate. However, this strategy doesn’t usually play out the way that sellers hope. Instead, buyers see the high listing price and simply pass over the house without even scheduling a showing. Your target buyers may not even see your listing at all if the price is outside of their search parameters.
Do: Clean, declutter, and organize
Selling as-is lets you avoid making major repairs and upgrades, but you should still put some work into prepping your home for the market. A clean and organized home will make a great first impression on buyers even when the property needs work.
Decluttering will make your house look more spacious, and deep cleaning will help it look cared for. Empty out your closets, garage, and other storage areas as much as possible so buyers can see how much space your home has to offer. Wash your windows so the house gets as much natural light as possible. Cut the grass and do some basic landscaping outside to enhance the curb appeal. A little work can go a long way to showcase your home in a good light.
Don’t: Neglect marketing
Your marketing strategy is just as important for an as-is sale as it is for a traditional home sale. Even if you list your house for a low price, don’t expect to be flooded with offers without marketing the property correctly.
Your agent should take high-quality photos that show all your home has to offer. Pictures are often the first thing prospective buyers see, so photography is an essential part of any real estate marketing strategy.
The listing description should also be carefully developed. When selling as-is, you don’t want to overstate the quality or value of your home because this could lead to false assumptions from buyers. Make sure you mention that the property is being sold as-is, and be honest if the house needs major repairs. However, the description should still highlight all of the positives about your home, such as its size, location, or overall potential.
Do: Prioritize cash offers or conventional mortgages
Cash offers tend to offer the fastest closing timeline, which can be especially desirable for sellers who are listing their homes as-is. Keep in mind that most cash offers will still include a home inspection contingency, and buyers can still back out if they don’t like the results of the inspection.
Offers with conventional mortgages can also be safer for as-is sales than offers with FHA mortgages. To buy a home with an FHA loan, the property needs to abide by extra safety requirements. If you’re selling as-is, your house may not meet these requirements, and the FHA borrower may have to exit the deal.
Don’t: Avoid all negotiations
While your goal may be to close as fast as possible, you might not be able to avoid all negotiations when selling as-is. Sometimes, a buyer and seller can easily negotiate an agreement that satisfies both parties.
For example, the buyer may ask for a small credit to repair a problem that was revealed during the inspection. You could tell the buyer that they have to take or leave the deal exactly as it is, but making a small concession may be easier and more cost-effective than waiting for the perfect offer to come along. Collaborate with your agent to decide whether it’s worthwhile to negotiate with a buyer.
Listing your house as-is can be a great way to streamline the sale and increase transparency with buyers. No matter how you list your home, you should always be upfront about its condition, showcase the positives, and keep an open mind. If you follow the do’s and don’ts for an as-is sale, you’ll attract the right buyer and close with ease.
