Even as the 2008 recession and housing crisis falls farther behind us, homes across the country continue to be foreclosed on.
In New Jersey, the state that experiences the most foreclosures, 1 in every 753 homes is facing a foreclosure.
While that number is much lower in Colorado, with just 1 in every 3,711 homes facing foreclosure, if you are facing a foreclosure, that number won’t be reassuring.
Whether you’re facing a foreclosure, or just need to sell your home and don’t want to or can’t go through the process of renovations and listing it for sale, you need a better option. That’s where selling a house as is comes in.
If you need to get out from under your mortgage fast, keep reading. We’re breaking down 6 things you need to know about how to sell a house as is.
1. Determine Any Necessary Repairs
While the name might suggest otherwise, it may not always be possible to sell your house as is.
Certain safety and health code violations can make it difficult to sell your home, even when trying to sell as is. That’s because in most cases, buyers will still need to seek a loan from a bank to buy your home. Most banks won’t issue a loan to buy a home if it has major safety or health issues.
Some safety and health code violations include the presence of mold or asbestos, structural damage, or similar issues.
If your home has these or other issues, but you absolutely need to sell it fast and don’t have the time or money to make the necessary repairs, there may be another option.
In some cases, a company specializing in buying homes as is may be able to buy homes with major issues. Once the house is purchased, they’ll then make the repairs needed before re-selling the home.
2. Know What You’ll Need to Disclose
Even if you are able to sell your home without making repairs, you’ll still need to disclose any serious problems the house has.
Failing to disclose safety and health risks to buyers, even if the buyer is a company or Realtor, could put you at risk of legal action after the sale.
Issues that you’ll need to disclose include whether the home contains lead paint, the presence of pests, drainage or flooding issues, boundary issues or major disputes with neighbors, and whether an emotional event, like a murder or suicide, has ever occurred within the home.
3. Weigh the Cost of Updating the Home
If your home has any of the above issues, or is in serious need of upgrades or other repairs, it’s time to weigh your costs.
Updating or upgrading the home will obviously cost you. But it will also allow you to set your selling price higher.
Weighing the cost of all repairs against how much more you would reasonably be able to sell your home for once upgraded is important.
Don’t forget to take into account the amount of time it will take you to make those repairs. During that time, you’ll need to continue paying your mortgage, utilities, etc.
Selling your home as may not get you as much money as you could get if you updated your home. But it will allow you to sell fast, and without investing any more money than you already have.
4. Figure Out When You Need to Sell By
If you’re only considering selling your house as is because you don’t want to spend money and time on repairs, you might not have a deadline to sell by.
But other homeowners might not have that luxury.
Maybe you’re facing a foreclosure. Or you’ve already bought another home, but have to get out from under your mortgage first. If you’re getting married or have gotten a job in a new state and need to leave fast, waiting around to list your home might not be an option.
Whatever the case, it’s important to figure out how soon you need to sell. If the answer is “as soon as possible,” selling your home as is is your only option.
5. Get Your Home Appraised
If you’re still on the fence about the best way to sell your home, it’s time to get it appraised.
Many homeowners overestimate how much they can sell their home for.
When you have an emotional attachment to your home, you may overvalue it. Updates that you like may seem ugly or outdated to buyers. Layouts that are perfect for your family might be odd to the next.
Getting your home appraised will allow you to make an informed decision about how much you could list your home at.
6. Clean and Clear Away Clutter
Just because you’re selling your home as is doesn’t mean you need to leave everything as is.
Cleaning up your home and clearing away unnecessary clutter will allow buyers to see your home and make a reasonable offer. Otherwise, they’ll be left trying to examine your house beneath piles of your belongings.
Since you’ll be moving once your house sells anyway, start by packing up anything you can do without for a few weeks. Rent a storage locker or store your boxes at a friend or family member’s house until you move into your new home.
Be Honest About Why You Want to Sell a House As Is
Deciding to sell a house as is can be a great way to avoid a foreclosure, climb out of debt, or get out from under a mortgage fast in order to buy a new home or move to a new city.
But that doesn’t mean that it’s the right option for everyone.
Once you’ve weighed the costs of updating and listing your home with selling it as is, it’s time to make your decision. If you’ve decided that selling it as fast as possible or selling for cash is the right choice for you, we can help.
Contact us today to see whether we can buy your house for cash fast!
