The “as-is” tag. We’ve all seen it while shopping. A blouse with a pulled thread. Shoes with slight wear to the bottoms. Or a sweater with a makeup stain at the collar. The vendor might elect to sell these items “as-is,” indicating to the buyer that there is something off, but they can have a discount in exchange.
You may have also seen this term used in real estate, especially if you have been shopping for a home. Of course, homes are sold “as-is” all of the time, but what does this mean to you as a seller who wishes to sell their home quickly that is in need of repairs? Let’s take a closer look!
Using “As-Is” in Your Listing: If you include “as-is” in your listing, this signals to a potential buyer that you as the seller won’t be spending time making any repairs. But, again, it’s a “what you see is what you get” situation for the buyer. Of course, buyers can still request inspections on your home, but the general understanding with an “as-is” property is that no significant repairs will be made, even if the inspection calls for them.
Lower Sales Price: One of the biggest considerations in listing a home “as-is” is that you will have to be comfortable listing your home for a lower sales price. Buyers shopping for “as-is” homes know that there will be a financial outlay for repairs or projects, so they will undoubtedly be looking for a deal. So be prepared to accept a lower sales price.
Be Upfront and Disclose Everything: Even if you’re selling a home “as-is,” you should complete a pre-inspection report, so you know the true condition of the home. Be upfront and disclose everything to potential buyers! While these issues might be overwhelming to you, there are plenty of flippers, investors, and DIY’ers who may view your home as the perfect opportunity.
Complete High-Priority Items: Cosmetic fixes usually aren’t a big deal to most buyers, but if any high-priority items could send buyers running, you may want to consider completing them prior to listing. These could include things like a broken HVAC unit, a roof in need of repairs, installing a new water heater, etc. While you will spend money on these projects, they could lead to a higher sales price. Work with your real estate agent to determine which projects should absolutely be done.
Remember that “as-is” homes can be great options for buyers who don’t mind putting in work on a home. They can often be purchased for a better price, but make sure your due diligence is complete, and you have considered the repair costs before you sign on the dotted line. Again, your real estate agent will be a tremendous asset during this discovery phase, helping you decide if projects are manageable or will require too much time and money to complete.
I’m a local real estate professional with decades of experience in the Pasadena area. I am available to assist you in buying or selling a home, so please contact me if you would like to schedule a time to discuss your needs. Take care!