An as-is home sale is one way to get rid of your house.
The real estate term means you’re selling your home without making any of the repairs that it needs.
When you sell a home as-is, you’re still responsible for disclosing the things that are wrong with it. If you hide anything that you know is wrong, the buyers could come back to you after the sale.
Understanding the potential pros and cons of this option helps you decide if it’s the best way to sell your house. For some people, it’s a money-saving solution that speeds up the selling process.
For others, it’s worth it to take a little longer and do some repairs before selling.
Keep reading to learn the pros and cons of selling your home as-is.
No Need to Prep for Sale
Does the thought of prepping your home for selling stress you out?
Handling repairs yourself can be stressful. You have to find time to do the repairs, and some might be more than you can handle.
If you hire out the work, you still have the stress of finding the right contractor to do the work. You’ll have to compare prices and find someone you can trust to do the work right.
Moving is stressful enough. Coordinating repairs on top of everything else can make the process overwhelming.
When you sell the home as-is, buyers know what they’re getting. You can pack up your things and get them out of the house to be done.
It cuts the stress when you’re moving.
Shortened Moving Timeline
Not only are home repairs stressful, but they also take time. Minor repairs can be done fairly quickly.
More involved repairs can take weeks to complete.
If you need to move quickly, selling your home as-is might be the right option. Maybe you have a new job waiting for you in another state and need to get there ASAP. Or perhaps you just want to be done with your current house.
Whatever the reason, leaving the repairs to the buyer means you can move faster.
If you find a cash buyer for your home, you can move any faster. A cash sale can often be completed in a week or two. With a traditional sale, the closing could be a month or longer away, which delays your move even longer.
Decreased Costs
Doing repairs to your home can get you more money from the sale.
But you also have to consider the amount you’re spending to complete the repairs. You’ll need to have the money available to complete the repairs. For some people, that cash isn’t available.
You might not get that money back when you sell your home.
Even the home improvements with the highest return on investment often don’t give you all of your money back.
Kitchens are huge selling points in homes, but a minor kitchen repair only averages an 81.1% ROI.
When you sell your house as-is, you eliminate the costs associated with doing the repairs. You don’t have to give the buyers a credit to make repairs either.
You could end up coming out ahead by selling your house for less without paying for repairs.
Consider the repairs your home needs, the costs associated with the repairs, and how much more you could get from your home by doing the repairs.
If you’re not going to increase your selling price by much, it might be cheaper and easier to skip the repairs.
Solution for Financial Hardships
For people who are experiencing financial hardships, selling a home as-is can be the perfect financial solution.
If you’re having trouble paying your mortgage, you may fear a foreclosure situation. A foreclosure hurts your credit and follows you for several years.
By selling your house as-is, you can get out of the mortgage before the foreclosure happens. This can protect your credit rating.
If you’re already struggling to pay your mortgage, you don’t likely have the money to make the repairs anyway. It can be a financial relief to know you don’t have to worry about looming repairs or figuring out how you’ll pay your mortgage.
Fewer Potential Buyers
Despite the potential wins for selling as-is, there are some potential cons to consider. One is a decrease in potential buyers.
Many buyers don’t want to mess with a home that requires repairs. Even if the issues are minor, they might assume there are more problems hiding in the home.
This limits the opportunities for selling your home. You might have to wait a little longer for the right buyer to come along.
It’s often cash buyers who invest in as-is properties that show that most interest. This can be a good thing. Those investors understand the potential for a home and might be willing to buy when others would pass on your home.
Proving the Value
When a buyer sees that your home is listed as-is, it automatically creates the assumption that there are major things wrong with it. That could be the case, or the repairs could be minor.
Either way, the buyer perceives it as being lower in value. Buyers might also feel like you’re hiding other issues, which may make this mistrust you.
You might have to work harder to prove the value of your home with buyers. You’ll have to overcome those negative impressions.
Lower Selling Price
You want to sell your house for the highest price possible. But when you sell as-is, you should prepare to get less out of the home than you would if you made the repairs.
Buyers might offer a significantly lower amount based on the as-is qualifier. They’ll assume you’re desperate to sell your home, so they’ll go as low as possible to get a bargain.
The truth is you’ll likely have to accept a lower price for your property if you’re not willing to make any repairs.
Consider an As-Is Home Sale
An as-is home sale can be the perfect solution depending on your situation and preferences. It’s often the easiest route to get rid of your home quickly.
If you’re considering an as-is home sale in Colorado Springs, explore our home-buying options. You can close quickly and move on with your life in your new home with our fair cash offers.
