The Nest

NestApple's Real Estate Blog

Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.

Is It Worth It To Sell Your House As-Is?

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When looking to sell your house, it can feel overwhelming what you have to do to get the property in pristine and show-ready condition. It includes repairing, remodeling, and renovations that cost thousands of dollars. You need to sell your house to save time and money. Instead of spending more money on your home before selling it, consider another hassle-free option. Not to mention very quickly, and that is to sell it as-is. It is not necessarily bad or good. But it does come with potential upsides and downsides. But is selling your property ‘as-is’ a good idea? Is selling your house as-is feel like the right choice for you?

This guide will explain the true meaning of an as-is sale and what it doesn’t entail. We have consulted with highly-rated real estate agents from different parts of the country to provide accurate information and expert advice to help you make an informed decision for your home and future.
Sell Your House As-Is

Business people give money with blurred home backgrounds, cash for a home concept.

This article will discuss the benefits of choosing this selling method and why it’s worth it.

Introduction: What does it mean to sell a house as-is?

An “as-is” sale means the house is being sold in its current state without any repairs or fixes from the seller. However, there are a few things to keep in mind:It is essential to disclose any issues: Simply listing your home as-is does not relieve you of the responsibility to inform potential buyers about any problems with the property. Both federal and state laws mandate that sellers must reveal specific issues that may affect the property. These issues typically include a leaky roof, asbestos, and problems with the HVAC system or foundation. In addition to federal requirements, each state may have specific disclosure requirements for sellers.When purchasing a home, some sellers may choose not to list the entire property as-is if the issues are confined to specific areas, such as the garage or pool area, or certain features like a fireplace or faulty appliances. In such cases, buyers can request repairs on the sites that were not listed as as-is.Although the home is listed as-is, the buyer can still request repairs. After making an offer, they can order an inspection, identify areas of concern, then review. The seller can then choose to negotiate and decide whether to do the repairs or refuse.

Typical Reasons for Selling a House “As Is” in New York

When a seller is going through emotional or financial distress, they often list their homes “as is.” This means that they don’t have the financial capacity to make costly repairs or the energy to negotiate repairs with buyers. Therefore, they put the house up for sale in its sub-optimal state.Essentially, they give up some possible earnings for the ease and speed of a sale with no alterations or improvements.Selling a home “as is” usually than a lower sale price compared to making necessary repairs, but it saves sellers from the expenses and hassles associated with a regular sale.Buying a home “as is” can be a worthwhile trade-off for buyers who may not have made necessary repairs to afford it otherwise. However, it will, and money to make essential repairs. For those interested in a fixer-upper, “as is” sales offer an excellent opportunity.

1. The Money Will All Be Yours

Selling your home as-is means you no longer have to employ and pay for the services of a real estate agent. In addition to that, also, it will waive the closing costs.

Some real estate agencies demand a small fee for a successful sale.

Cash buyers won’t charge you a fee for the sale. Once both parties have agreed on the selling price, you only have to pay the amount you still owe to your mortgage company.

2. Saves You Time

One of the best things about selling your house as-is is that you don’t have to wait months just for the repairs to be finished. And then wait another couple of weeks or months to find a buyer. You no longer have to ask, “How long does it take to sell a house?”

A cash buyer will pay you in full directly. Therefore, the closing process of the sale will also speed up, saving both parties time while making the overall selling process more convenient.

When selling your home, hiring a real estate agent is not mandatory. Still, it’s highly recommended because they can provide valuable support and expertise, particularly in an as-is sale. An agent can guide you through the home selling process and offer advice on pricing. In New York, a lawyer’s participation is mandatory in all home sales. Their responsibilities include drafting a purchase contract, analyzing the title report, and helping with documentation during closing.

3. No More Repairs when Selling Your House As-Is

Making a random house look appealing is pretty expensive.

You need to pay thousands of dollars to make significant improvements. You can do this if you have money. However, what if you don’t have the finances to fund these repairs and renovations? Are you willing to put yourself into debt to fix your property?

It’s not worth it.

Sell Your House As-Is

Buyer Handing Over Cash for House with Home and For Sale Real Estate Sign Behind.

On the other hand, selling your house as-is doesn’t require you to do any repairs, saving you some bucks.

If your home needs a new roof, floor, or other expenses you can’t afford, it’s not yours to worry about anymore as long as you sell it directly to cash buyers.

Cash buyers will be the ones to conduct the repairs themselves. Since you no longer have to do these repairs, you can immediately proceed to the selling process and closing.

4. You Can Still Negotiate The Price

Many home sellers are afraid to sell their properties in as-is condition because they might receive a low-ball offer from cash buyers. It is false because cash home-buying companies are always open to negotiations.

These people are not trying to get their hands on your home and rob it from you; they are also looking to provide a fair, favorable offer for you and them.

Cash-buying companies have a reputation to maintain and are devoted to providing honest and quality service to sellers. They are willing to negotiate the price to satisfy their sellers to maintain their reputation.

5. No More Additional Stress

If you’re in a situation where you can’t deal with additional stress anymore, then selling your home as-is is a good idea. For example, you may be in poor health right now and don’t want to add to your burden or problems when selling a house the traditional way.

It is also ideal, especially if you need immediate finances for treatment.

Selling your property as-is can give you a good way out if you’re in a horrible financial situation. You don’t have to worry about anything because the cash buyer will handle all the closing paperwork.

6. How much do you lose selling a house as is?

Is it advisable to sell a house as is? It’s difficult to determine the exact percentage of loss that may occur in an as-is sale. As per, offers for homes may range from 75% to 95% of what they would be if repairs or renovations were made.However, much depends on the condition of the residence. And how hot the local real estate market is. In a strong seller’s market, the offer price gap between an as-is and a regular sale dwindles — or disappears completely; buyers can’t be choosers.Location counts for a lot too. If a home is on a prime piece of property or in a highly desirable neighborhood — especially one that doesn’t see openings often — its condition matters less. People will want it for the land and be willing to pay for the overall real estate package.

Conclusion about Selling Your House As-Is

Is selling your property in the as-is condition a good idea? The answer is yes, especially if you need quick money or want to get your home out of your hands because you’re moving to another city.

The selling process will be highly convenient since the transaction is effortless, and you don’t have to worry about repairing or remodeling your house.

Lastly, since the sale can be closed in just a couple of days, you’ll have the total amount of money right when needed.

Written By: Georges Benoliel

Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.

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