An as is home sale means that you are selling the property in its current state. It is an understanding that no repairs will be made and that the home will come with all its present faults and issues.
“As is” actually has a legal definition, and the buyer will probably have to sign paperwork indicating that he or she understands the exact terms of the transaction. When conducting an as is home sale it’s typically spelled out in the purchase and sale agreement.
Unfortunately, many homeowners are under the mistaken impression that selling as is relieves them from all the general obligations that come with the sale of a home. They imagine that they can unload the property for whatever price they can get while avoiding the need to talk about or disclose any issues with the house. Most homeowners may want to avoid initiating an as is home sale. However, there are certain situations where an as is home sale is desirable.
These reasons include:
1. You really cannot afford to make any repairs.
You may be in a financial situation where repairs – any repairs – are just not feasible. If the property has defects and you have no way to repair them, you may have no other choice but to sell as is. However, try to keep an open mind and talk to your Realtor before you make a hard decision on listing an as is home sale. Your Realtor may be able to come up with some creative solutions that will allow you to avoid selling as is, or at least avoid putting it in your listing right from the beginning.
2. You really cannot handle the stress of a traditional home sale.
Sometimes homeowners find themselves in situations where they have to sell their home but are genuinely unable to deal with the stress that a drawn-out sales process entails. If you are seriously ill or otherwise incapacitated and do not believe you are capable of dealing with the selling process, you may decide that an as is home sale makes the most sense. Again, explore all your options before making a final decision on selling as is. If you can get help from friends or family, or if your Realtor offers to take care of all the stressful aspects, you can probably get a better price for your home.
3. Financial distress.
Sometimes an owner will find themselves in severe financial distress and needs to sell their home immediately. One viable option in this scenario is contacting an investment company like House Market Solutions. We are perfect for those distressed sellers who need an immediate sale.
4. No Big Repair Costs
Houses are vulnerable to rot and repairs as time passes. This calls for higher maintenance and pricey improvements, especially for the sellers. But putting the property “as is” in the investor’s hand will limit, or even eliminate these repair costs. However, known defects or faults inside the house should be disclosed to the buyers.
5. Estate Sale
Another reason for an as is home sale is if the seller has estate properties. These homeowners may not have any information about defects or significant repairs to the house, which adds a burden on their part. In case the division of inheritance is too complicated, siblings rely on the as is home sale to divide proceeds easily.
6. Avoiding Construction Days
If the costs do not worry homeowners, what may get on their nerves during renovations are the long construction periods. The working days to fix your bathrooms and kitchen might not be as fun as you think. For the duration of improvements, there will be substantial amounts of debris scattered throughout the house and dust everywhere.
7. Fast Cash Flow
Professional real estate investors are likely to make you an offer even with no contingency for a home inspection. Since they quote homes in cash payment, expect them to purchase the home below the property’s retail market value. Investing companies like House Market Solutions are typically willing to offer very favorable terms like closing in a week or two. They’ll also accept the property with the burden of improvements.
8. Minimal House Cleaning Needed
To increase the value of the property, homeowners perform deep cleaning and clearing out of items they have accumulated. But not all sellers have the capacity to complete such an in-depth cleaning process. Unbeknownst to some sellers, real estate investors are happy to accept the tough job of improving the state of your home. It is their business model to purchase a distressed property, force appreciation by adding value, then selling at a profit. You can just go ahead and leave anything you don’t want behind!
9. Real Talk
In the customer’s mind, doing an as is home sale may produce an unsettling feeling. Although the benefits outweigh the disadvantages, former homeowners might still be liable for possible defects in the conditions of their homes. Sellers are obligated to disclose issues such as faulty wiring, plumbing defects, and other known problems to future buyers.