As-is homes can get a pretty bad rap if you think of them only as dilapidated structures that may or may not be liveable. But any home can be sold as-is, even if it’s in good condition — it just means the seller is listing it without making any repairs.
When a property is listed as-is, the seller is not offering any guarantees for the condition of the house or for any of its major systems, like plumbing or HVAC, to be in working order. As such, the seller is therefore not required to produce a disclosure for the buyer unless mandated by law. There must be, for example, a lead paint disclosure for all houses built prior to 1978, when lead paint was banned by the federal government because of its health hazards.
If you want to take advantage of the hot real estate market and sell your home at a big profit, it makes sense to do some repairs and enhancements so you can push that asking price higher. Then again, it might not. Here are some reasons you might want to instead sell your home as-is.
1. You need to sell ASAP
Maybe you are moving across the country. Or you just want to offload a property while the seller’s market is raging on — and before mortgage rates continue to rise. Whatever the reason, time is of the essence for you as the seller. Listing your home as-is could certainly speed things along by taking the renovation timeline out of the equation.
In fact, given that the supply chain is still slow, this is a smart move. Not only are many home improvement materials harder to come by, but they are quite expensive when you can get your hands on them. Plus, it might also take awhile before a contractor can get to work on the home. If you don’t have the time or patience to wait for a reno, selling as-is could be an attractive option.
2. You own it free and clear
Let’s say you’ve inherited a home with no mortgage or lien on it. If you don’t have a need or desire for the home, be it as your primary residence or a vacation rental, you might be eager to cut ties with it for whatever money you can get for it. Alternatively, if you have owned the home for many years and the property values have gone up to a point where you’ll make a tidy profit even if it’s not updated, you might be ready to take the money and run.
3. You’re not able or willing to spend money for a renovation
Here’s an obvious one, but it counts: If you’re low on cash or have it all tied up in your next home or other investments, a renovation might not be in the cards. Maybe you’ve got enough equity in your home that you’ll make a handsome profit even without the benefit of a new kitchen or bath. Either way, you’re just not able or willing to spend money to make money, which means selling as-is is the way to go here.
4. You’re entertaining an all-cash offer
Cash is king in real estate. If you’ve got investors knocking at your door and the price is right, it’s very tempting to go with a faster, surer closing. To be clear, you’ll most likely be getting a lower offer than someone with a mortgage in hand. But since real estate transactions are known to fall apart at any time when financing is on the line, you’re looking at potentially losing both time and money when a lender is involved in the buying process.
5. It’s too much of an emotional burden
Maybe the home in question is where you or someone else lived unhappily ever after. Whatever the particular scenario, you want to move on quickly. Provided there is still some profit to be made by selling it as-is, it’s understandable that you wouldn’t want to stick around to choose paint samples or select a backsplash for the kitchen. In this case, time to sell the house as-is and seek a fresh start.
Are you leaving money on the table by selling a home as-is? Yes, since even minor upgrades are known to enhance a home’s value. But depending on your current situation, it could be a smart strategy to save time and energy by not doing any renovations — especially when there is still some profit to be made on the home sale.
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Barbara Bellesi Zito
