Pros and Cons of Selling a House As Is
Selling a house as is generally means putting the property up on the market for sale without doing any renovation work or sans prepping up the house to attract potential buyers. There are several reasons why homeowners opt to take this route. They may not have the necessary funds and/or time for renovation. Also, undertaking the hassle of conducting repairs is not everyone’s cup of tea. Some homeowners might be divorcing couples who’d like to sell the house immediately and divide the proceeds without having to prep the property for sale.
Contrary to common perception, selling a house as is doesn’t mean hiding issues in the house or waiting for the buyer to find it at a later date. A property owner must understand he/she can still be held liable if anything goes wrong during or within a certain time after the house has changed possession. If you’re contemplating selling your house as is, understand there are quite a few pros and cons to the process.
Easier to Sell Quickly
The primary advantage of selling a home as-is is selling it quickly. Since the home more than likely will be priced below market value, the expectation for homeowners is that their home will sell quickly. In most markets, as-is homes, especially the ones priced well below market value, sell fairly quickly. Expect the home to sell quickly if the property is priced well below value and the repairs or renovation costs. Like any other purchases, everyone is always looking for a deal
Ability to Avoid Home Repairs
Another major reason for selling “as is” is being able to not put up with the hassle of repairs. It’s not just the inconvenience, but some homeowners cannot afford renovation costs. Sellers who cannot spend time and energy on overseeing such repairs can sell the house in its current condition and ask the buyer to make alterations or improvements as he/she sees fit.
When you’re selling a property as is, chances are that you will probably sell the property to a real estate investor. With that objective, this type of buyer would want to buy your house for the lowest price possible. As a seller, be prepared to list and sell the property below market value.
Buyer Can Sue for Damages
As aforementioned, selling the property as is doesn’t relieve the homeowner of his responsibilities pertaining to the property. If he hides something or chooses not to document a certain dilapidated aspect of the house in the disclosure statement, the buyer can come back any time and sue the homeowner. A buyer who is purchasing a property as is probably knows there are issues with the house, but that still doesn’t give the owner the leverage to be dishonest or conceal things.