For many homeowners looking to sell their homes, there is often a debate as to how much they should invest in repairs and/or upgrade to get the best value for their home when they are looking to sell the house down the road. Most homeowners decide to at least repair the basic deficiencies in the house to be able to attract buyers, while others invest heavily hoping for a much larger return on their investment (ROI). However, there is a small percentage of sellers that look for selling their house in as-is condition and this could be due to their circumstances or just a personal preference to not have to deal with contracts or realtors and making decisions as to amount and quality of repairs and also coming with the upfront cost of repairs. This motivates them to sell the house at a lower price, typically to investors, who typically have the ability to purchase their house within days for. Given the advantage of saving time and hassle with a quick cash offer, it may be worth looking into benefits of selling the house as-is.
The Legal Ramifications
Before fully exploring the benefits, it is sort of necessary to look at the potential legal problems selling house as-is. In a number of jurisdictions, a home must be brought up to code before it can be sold on the market. However, there are a number of exceptions, depending on the age and condition of the house in question. In some cases, a home that qualifies for historical status does not need to be brought up to code. Also, some homes can be sold despite being in a general state of disrepair or in need of upgrades as long as that condition is fully disclosed to potential buyers. Thus, a potential seller does not need to need to fix up a home if they are looking to sell house as-is.
Cost Cutting in General
Some houses just require too much work in order to bring it up to code and selling house as-is is just a preferred choice for some people under their circumstances, especially if they need to move quickly. This can be for a number of reasons, but it usually comes down to a combination of issues which makes people decide to sell their house as-is, with or without a Realtor.
Jeffrey Bennett mentioned, without repairs you are sending out a signal that the home has not been well-maintained and may have underlying issues and sometimes it may take longer to sell. But if the price is realistic, the benefits of selling house as-is could easily out-number the drawbacks, if the seller’s personal situation warrants a quick cash sale. Typically, as-is homes are purchased by Investors, who don’t care about any repairs or cleaning and may even pay the all selling cost for the sellers, as a nice side benefit. But if the house is being purchased as a primary residence, then the buyer should be prepared to deal with repairs and make sure they will not have buyer’s remorse later. Investors typically purchase with cash and can close quickly or around the seller’s timeline. It also avoids the pitfalls of the deal falling through due to buyer’s financing falling through. It could be a blessing to those who do not have the time or resources to perform repairs and deal with the stress of trying to sell the house for months after spending thousands of dollars on repairs and upgrades.For out-of-state landlords and inheritance properties, a quick as-is sale simplifies the process and saves them the headache of selling the home remotely and dealing with realtors.