Today we are going into detail what it means when you sell your house ‘as is’.
What does selling your home “As Is” really mean?
When you sell your home ‘As is’, it means selling your home in its current state/condition without any renovations or repairs. This means instead of you getting the extra equity out of putting the work/money into your property, someone else could see the potential to get let’s say the valuation up another 50k for little work. When selling your home ‘As is’ it is understood that:
- There is work that needs to be done and work that can be done.
- You will take a fair offer and don’t expect top dollar.
- It attracts DIY/flippers, which like ‘sweat equity’.
- basically, you will be doing nothing between now and the sale day.
Although, selling your home ‘As is’ not only denotes selling properties that aren’t in excellent shape, it is becoming more common for well-kept houses to have this ‘As is’ status. There is no need to renovate or spend money if you are not willing and it reflects this when advertising your home.
You most often see inherited homes being sold in ‘As is’ condition, an inherited home is one that has been passed down and when it is put on the market, the beneficiaries just want it sold. They do not want to put money or time into getting the property up to its true valuation, which can be a real shame. This is where DIY/Flippers can be in luck, even on a low budget you can add a lot of value to a property.
Depending if the property has been well maintained or just been deteriorating over the years. This could be a big factor in the decision to sell ‘As is’, more so if you have moved away from where the property is located.
When selling a property like this, it is important to find ‘your best agent’, which an be done through a referral agent. They will help you achieve your top sale price regardless of the condition and without putting money and work into the property. If you have a property, you would like to sell, have a look at TopNotch Agents.
You could alternative think of renting the ‘As is’ house out, there are a lot of legal requirements for rentals but if it was the house you ‘grew up in’ it could be nice to have it as an investment property instead.
If you wanted to go down this road, you would need to renovate and get the property up to the government imposed living standards for rentals. Insulation and heating which could be up to 50k but in saying that it could be already up to the standards for rentals. It would be the matter of doing your homework, there are a few towns that have shortages on housing. You maybe lucky and have your property where there is a housing shortage.
Being a landlord is not as easy as just selling ‘As is’ but there are benefits and heartache by going down this road. You need to get any repairs done, need to either have a property manager or self-manage. You need to sit down and go through the pros and cons, if it is a family decision make sure everyone understands what is happening. For more advice on renting out your property explore the option of using a letting service.
But if you decide to sell your home ‘As is’, it’s not a quick task.
The questions are why do you want to sell your home ‘As is’?
- The cost factors
- Stress involved in selling a home
- Financial issues
- Lack of Skill for self-renovating
- The house was inherited and you don’t need it yourself
How do you approach selling your ‘As is’ house?
There is a benefit for people buying ‘As is’ properties, they know you do not want to put in the work and therefore will negotiate over the price. This can get a lot of interest, ever heard ‘the worse house on the best street’? Well, the people that will look at your property have.
You could use Trademe and do it yourself if you have the time or are close by. But private sales generally take longer to sell and you need to do all the open homes. Otherwise find a well preforming real estate agent in the houses area. With their data base you might even find the property sold within a week, there are a lot of potential buyers looking for a fixer upper.
So, what are you waiting for? Are you going to sell your home ‘as is’ or make it into an investment property?