Thinking of Selling As-Is? Consider This First
Whether you bought a starter home that unveiled a few issues down the road, or you're in a hurry to move and don't want to invest in replacing old, popcorn ceilings, there are many reasons to opt for selling your home as-is. Still, before you sell your home short, it is important to consider the pros and cons and keep disclosures in mind - Yes, there are still items that need to be disclosed when selling a home as-is.
Here are our top tips to make the most well-informed decision about whether or not to put your home up on the market as-is.
First Things First, What is Selling As-Is?
Selling a home as-is means that both you and the buyer come to an agreement acknowledging that you will not be making any repairs to the property, regardless of any issues. When they walk in the house and look around, they know exactly what they are getting.
This is actually a legal agreement that can be noted on the purchase and sale agreement to ensure that both parties know the terms and what is expected.
But Does That Mean No Disclosures?
While Georgia does not require sellers to disclose information about the home through a formal disclosure form, Georgia sellers must inform buyers about any known defects in the condition of the home when asked by either the buyer or their agent. This includes properties being sold as is. In general, this includes any defects you've seen in appliances, foundation, heating and air, plumbing, termite damage, seasonal flooding and more - as well as repairs you've made to the house or know of from previous owners.
To sum that up, selling as-is does not mean you can hide issues going on in the home with a quick sale.
Pros of Selling As-Is
Your Financial Situation Doesn't Allow For Repairs
There may be instances when paying out-of-pocket to make dramatic repairs to a home can take more of a toll than selling as-is. This is especially true when a full renovation is needed, such as changing out all of the appliances and cabinetries in a kitchen, or replacing all of the flooring in a home.
There is also a risk that you won't see an adequate return on your investment for the renovations you do decide to make, leaving room for debt if the home price doesn't cover the cost of renovation.
You Need a Quick Sale
Listing a home as-is is a quick way to get your home onto the market and start point eyeballs towards the property. If you need to relocate quickly for a job, or have another dramatic life change, selling as-is can be far speedier than the time it might take to wait for a renovation project to be completed.
Cons of Selling As-Is
You Won't Make as Much Money
Unfortunately, buyers may see a sold as-is status as an opportunity to lowball with their home offer, because you won't compromise on any repairs. This can mean that you will not receive market value for your home. Some lenders will also not approve a mortgage on homes they determine to be fixer-uppers.
You Might Not Receive as Many Offers
The label of selling as-is can bring a negative connotation for some buyers because they associate it with a risky investment, such as horrifying termite or structural damage. This means that you may receive fewer offers on your home. While trying to sell quickly, this could even mean that your home may stay on the market longer than expected if you are waiting for an offer worth taking.
Talk to a Real Estate Agent
Before opting to list your home with the "as-is" designation, consider talking to a real estate agent, who may even be able to suggest a few quick and easy repairs that you could make for a far higher return. Regardless of what option you decide to go with, our best-in-class real estate specialists are here to take the hassle out of your home sale. View our selling guide for more tips on the home sale process, or to connect with one of our home selling experts.