ON THE MARKET: Selling your home as is
Published 2:45 pm Wednesday, January 18, 2023
Sometimes a seller will say that he wants to sell their home “as is.” Selling a home “as is” usually means the seller does not want to address any repairs that may be needed. Sometimes it means that there are too many repairs needed, or sometimes it could mean the seller has never lived in the home and does not want to be bothered with any repair issues. The home could be a tear-down or needs a complete renovation. Usually, this will attract flippers and low-ball offers.
A smart seller will weigh all the options. If the home needs major repairs. How much is too much to recoup their expenses? Painting the walls, having up-to-date appliances and fixing leaky faucets are not major repairs. If your home needs major repairs: roof, windows, foundation, etc. and you do not want to repair, you may want to consider disclosing the issues and reduce your asking price. Any major problems that you are aware of must be disclosed.
“Even with due diligence or an ‘as is’ contract the seller must disclose any latent or hidden defects of which they are aware that could not be discovered by the Buyer.” (Gar Purchase & Sale contract Inspection Paragraph d)
Sometimes sellers are not aware of major problems their home has. Many years ago, I had a client who accepted an offer. After the inspection came in, the inspector found that there was mold behind the dining room wall. The wall had to be opened up to see how extensive the mold was. The repair bill came to $20,000. The seller did not want to absorb the cost. He negotiated with the buyer and reduced the price. It was fortunate that he got a full price offer. He was happy to knock the cost of repairs off the price, and still come out with a price he could live with. Many times’ older homes have hidden problems. Try to investigate problems your home could encounter, especially if it is older.
DO BUYERS WANT FIXER-UPPERS?
Today what Fixer-upper means to most buyers, is not repairing the foundation or moving walls, they want to tackle simple repairs and changes (mainly cosmetic.) Most buyers do not have the time to do major repairs. They want move-in ready.
I personally do not like to list a home “SOLD AS IS”. I think it opens a can of worms to the buyer. What is the seller hiding? There are always circumstances as I stated in my opening paragraph.
Seller, the bottom line is knowing your home, and what repairs are needed. An experienced Realtor will help you determine what repairs are necessary to get you top dollar for your home.
THOUGHT FOR THE DAY: Kindness is one thing you can’t give away. It aways comes back. (George Skolsky)