If you’re planning to sell your house, one of the most important questions to ask is whether to sell it ‘as-is’ or to make some renovations.
You’d have to consider a few factors, including why you’re putting your property on sale and how fast you need the cash. Finding out how much these renovations will cost you is also a significant consideration.
Before listing your property on the market, you must understand what selling ‘as-is’ means and the upsides and drawbacks of taking this route.
What Selling A House ‘As-Is’ Means
Selling a property ‘as-is’ means you don’t have to make any structural or aesthetic changes to the home. Similarly, buyers will have to accept the house in its current condition. All sale terms will have to be laid out and cited on the documents related to the transaction.
This doesn’t mean that selling a home ‘as-is’ exempts you from discussing the specific flaws of the house, including the hazards it might be exposed to. In fact, in most states, property sellers are required to disclose the actual condition of their property.
The Pros Of Selling A House As-Is
As mentioned, deciding to sell a house ‘as-is’ might not be the best option in all cases. If you’re facing any of the situations below, offering the property without remodeling and fixing it could be your only choice.
- It Saves You From All The Stress
Selling a home is not for the faint-hearted. It entails back-and-forth discussions with real estate agents, prospective buyers, inspectors, and even lawyers. Home inspections, staging, visits, and negotiations can leave you feeling pressured and anxious. Thus, dealing with home renovations can leave you further in distress.
On the other hand, selling your home ‘as-is’ can minimize these challenges. Look for cash buyers who’ll purchase your home no matter what condition it is. For example, if you’re in Texas and plan to dispose of your home most easily, sell your house as-is in Benbrook for a stress-free transaction.
- It Saves You Money
Offering your house ‘as-is’ means you’re not going to spend a dollar for repairs and renovations. According to estimates, a typical home renovation for a medium-sized home can cost USD$18,000 on average. This cost could vary based on the scope of work and the actual size of the area you want to be renovated. For sellers raring to maximize the proceeds of their home sale, this can be a good choice.
If you have a small amount of cash tucked in your savings, consider getting value-for-money renovations done. These minor repairs can help you gain the maximum impact with the least effort and budget.
- It Saves You Time
Life-changing events often require you to relocate swiftly. A messy divorce and a higher-paying out-of-state job offer can abruptly force you to transfer to a new place. As home selling takes up to 45 days on average, you probably won’t have enough time to spare for renovations.
Home repairs take time. Depending on the scope of work and the current state of your property, a home remodel can take over six months to complete, on average. If you’re selling a home in its current condition, you can list it as soon as possible instead of waiting for several months. Additionally, it skips the time spent in negotiating back and forth on who pays the repairs. Put simply, selling your house ‘as-is’ can make for a quick sale.
The Cons of Selling A Home ‘As-Is’
If you don’t need to move out soon and are willing to wait for the best offer for your property, consider making either minor or significant fixes before offering the property. Below, you’ll find the primary considerations why you shouldn’t act too fast.
- Expect To Get A Low Offer
Homes sold ‘as-is’ generally fetch low prices on the market and it’s not surprising why. Before pushing through with the purchase, interested buyers will request a home inspection to know how much it will cost them to refurbish your house. Prospects often deduct the renovation costs from your offered price. If your home is in bad shape, you’re not going to get the amount you’re hoping for.
- You May Find It Difficult To Sell Your Home
While some buyers find it tempting to purchase a home to remodel later, most prefer to move into a property that doesn’t need one. Only 6% of home buyers were willing to roll their sleeves for home improvement, based on the 2020 Profile of Home Buyers and Sellers done by the National Association of Realtors (NAR).
Besides, buyers engaged in negotiations with you, or even those who’ve initially agreed to purchase your property, can still change their minds. Thus, they may cancel the sale and get their deposit back.
Depending on the reason for the sale and your urgency to get the cash, selling a property ‘as-is’ could be the best route to take. It saves you time, money, and all the energy-consuming activities involved in traditional home selling.
However, expect to get a price way lower than your expectations, if you’re offering your home through this scheme. To optimize an ‘as-is’ home sale, perform some minor repairs that help increase property value. Landscaping, power washing, and adding a fresh coat of paint can all make a difference.