In a the fast moving real estate industry, you might think it’s beneficial to sell your home ” as is,” with no updates or changes in designs. However, home inspections
grant buyers the right to request repairs before finalizing the deal, or alternatively, to negotiate a price reduction. This article will discuss the impact of buyer’s inspection contingencies, options for specific situations, stigma and market challenges, and recommendations!
What to consider when selling a home “As Is.”
In a fast-moving housing market, you may conclude that you don’t need to do much to sell your homes. But, selling a home “as is” may cost you more than you know. Your listing contract will include a clause that says the home is being conveyed “as is,” which means you’re selling the property in its current condition with no intention to make repairs or improvements. That doesn’t absolve you of responsibility to the homebuyer—you’ll still have to provide a state-mandated seller’s disclosure attesting to what you know about the home’s condition.
Home Inspection
If the buyer includes a home inspection contingency in the sales contract, it allows them to come back and ask for repairs before closing. If repairs are not agreed to, they can ask for a price reduction. You can refuse, of course! However, in this case the home will go back on the market. This can slow the sale process down wasting valuable marketing time.
Contingent to Major Systems Only
In the event that the buyer intends to tear down or gut the home, the sales contract can be drafted without an inspection contingency or it can be contingent to major systems only.
Stigma to Selling “As Is”
The stigma with listed “as is” properties is that this attracts buyers who do not want to look at the property before buying and therefore may make a much lower offer, if they make one at all. Your home could stay on the market longer than you want, leaving you obligated to manage expensive carrying costs, including the mortgage, home insurance, HOA fees, utilities and taxes. An additional stigma of selling “as is” is that the home owner is trying to sell quickly, which makes the buyer assume the home owner will take a lower offer.
Is it actually more Convenient?
While selling a home “as is” may initially appear convenient, it’s crucial to consider the potential drawbacks and implications carefully. Despite the allure of minimal effort, sellers must recognize the responsibilities that come with this approach, including the disclosure of the property’s condition and the possibility of navigating buyer inspection contingencies. At the end of the day, is listing a property “as is” actually more convenient than not? It’s up to you!
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Experienced Robert Paul agents can help answer all your questions about listing your home – whether you are considering listing as-is or not. If you’re considering listing your home contact an agent today for personalized assistance that best fits your situation.