It doesn’t matter what condition your home is in. If you don’t want to miss out on this marketing, the time to start thinking about selling is now, and that’s true even if you’re thinking of selling a house that needs repairs.
You want to sell, but whenever someone brings it up you simply say “my house needs a lot of repairs” and leave it at that. We’re here to tell you that it’s absolutely possible to sell your home as-is, you just need to go about it the right way.
If you want to know how to sell a house to needs repairs, we’re more than happy to help. We’ll cover who can benefit the most from selling as-is, and what you should do if you want to successfully sell your as-is home ASAP.
What Does Selling a House As-Is Mean?
In the real estate world, a house that’s being sold “as-is” is a house that’s being sold in the current condition it’s in. That means that any interested buyer shouldn’t expect any major repairs to take place before they officially own it.
Selling as-is doesn’t automatically mean that there’s something wrong with a property. Someone could choose to sell a home that needs minor repairs as is, or they could sell a home that needs extensive repairs.
It’s important to note that people that are selling a house as-is still need to disclose any problems the home may have. If your house has issues with electrical work, plumbing, or structural problems, the buyer must know about them.
As-Is vs Repairs: Deciding What’s Best For You
It’s almost expected for home sellers to try to go through a flurry of major repairs before they can even think about putting their house on the market. That’s why it’s so difficult for people to imagine simply selling their home without having to put major work into it.
It’s important to note that selling as-is may not be for everyone, but there are many situations where selling as-is can be worth it. If you find yourself falling into any of these categories, consider thinking about selling as-is.
You Need to Move in a Hurry
It would be nice if everyone could take their time selling their home, but sometimes life forces you to move fast. A new job opportunity or sick relative could speed up your timeline.
People that need to sell their homes ASAP would benefit from selling as-is. You won’t have to worry about putting more time and money into a home you’re planning on selling.
Can you sell a house that needs repairs? Well, yes, you can. In fact, in some as-is cases, you may even be able to get someone to make a cash offer on your home sight-unseen which can help make the process go even faster.
Your Home Needs a Lot of Work
There are some small repairs that can be worth doing if you want to sell your home. A fresh coat of paint, new carpet, or even a new appliance or two can do a lot to make your home more appealing to buyers.
However, what if you’re in a situation where you’re not looking at “small” repairs?
Your roof is missing shingles and has been leaking, but you don’t have the money to repair let alone replace it. You’ve noticed cracks in the foundation, and on top of everything else, your old wiring seems to be on its way out.
Sometimes the repairs you’d need to make to sell your home are far too costly or extensive. You may not have the funds to sink tens of thousands into home repair projects when you’re trying to secure a new house.
Instead of focusing on new repairs, list your home as-is and let the buyer handle potential major repairs.
Your Home Isn’t Worth as Much
The real estate markets can be volatile. You never know when prices will go down, or when your neighborhood can suddenly become the hottest moving destination in your region.
We urge everyone that’s planning on selling their homes to do an appraisal before they decide on what to do. There’s plenty of research you can do on your own to determine the right price to list, but nothing can beat help from a true expert. Once you understand how much your home is worth, you can decide what steps you want to take to sell.
Some people that find that their house is worth much less than they thought may benefit from selling as-is. Any extensive repairs you decide to do may cost too much when you factor in resale value.
You’re Concerned About Money
It is worth noting that houses that sell as-is most likely won’t be worth as much as homes that are sold after repairs are done. Plenty of as-is homes are sold to people that want fixer-uppers or may even want to tear down the home and start anew. When people are already planning on putting money into the house, you can’t expect a lot in terms of your asking price.
Despite that, it’s important to note that people that are mainly concerned about money should consider selling as-is. As we mentioned before, home repairs can cost a lot of money. Even something as simple as applying a new coat of paint will cost you.
If you don’t have the money to put into repairs and just want to get whatever you can, as-is can be the best and most budget-friendly option you have.
Selling a House That Needs Repairs: Our Top 5 Tips
Now that you have an idea of what selling as-is means and if you’re a good fit, let’s dive into how you can make selling as-is as simple as possible.
Selling a home that needs repairs may be a bit easier than coordinating home repairs and renovations, but it’ll still take a little time and even a little money to do. Remember, the ultimate goal isn’t just to save time and money, it’s also to find the right buyer.
If you’re serious about selling your home as-is, make sure you follow these tips to learn how to sell a house that needs repairs.
1. Get an Inspection
A home inspection should be a part of the selling process regardless of you’re selling as-is or if you’re renovating before you sell. If you want to sell as-is, involve a home inspector in the process as soon as possible.
You may have an idea of what needs to be repaired, but a proper inspection can give you a lot of details on any issues your home may have.
It’s important to remember that disclosing issues your home has to potential sellers isn’t just polite, it’s the law. Penalities and issues can differ from state to state, but you could find yourself in serious legal trouble if you sell your house without disclosing problems. Getting an official inspection can help ensure that you’re in the clear legally and can help you find the right buyer.
2. Understand Your Buyer
Now that you know what condition your house is in, you can start thinking about the potential people you can sell and market to. If you’re going to sell your home as-is, there are three main buyers you could appeal to:
Flippers are people that are interested in doing extensive renovations and repairs on a home so they can sell it at a higher price. They’re looking for a good deal because they’re going to sink a lot of money into your home and want to make money back on their investment.
Buyers like these can work for as-is sellers in almost any situation. They could buy a home that needs minimal work or may even be willing to invest in a total tear down.
They’re interested in living in your neighborhood, general location, or could even want to enroll their kids in your school system. Unfortunately, most of the houses they’re looking at are out of their price range. They’re looking for an affordable home and don’t mind putting a little work into it.
These kinds of buyers would be best for people with homes that need minimal work done. They’re already on a tight budget and may not want to invest in a home that will require a lot of repairs.
These kinds of buyers can be seen as a hybrid of the deal hunter and the flipper. They definitely have the money to purchase a home, but they’re waiting for the right one to come along.
People that are selling homes that need more than a few minor repairs could aim to attract this buyer. They’re buyers that don’t mind doing work, and they could be willing to pay for a home or location they love.
3. Price Realistically
You know important details about your home and even have an idea of the kind of buyer you want to attract. Now is the time to start talking about pricing.
Do a little research to see what other as-is homes are selling for in the area. Try to compare based on things like the number of rooms and square feet. Also, check out real estate sites on certain properties to see how listing prices have changed on the same property.
This can also be a good time to bring in help from a real estate agent. They’ll have in-depth knowledge of the local housing market and can help you set a reasonable price for your house.
4. Highlight the Positives in Marketing
You may be selling your home as-is, but that doesn’t mean that your home lacks good things about it. Marketing is important when you’re selling your home. Now that you have a good idea of who your potential target buyers are, market to them by highlighting features that would interest them.
Did you do extensive electrical work in your house a year ago? Is the siding new along with the shutters you had installed? Can you certify that your house is mold-free? It may seem small, but sometimes some minor positives can do a lot to snag a sale.
Houses that aren’t in good condition still have positive qualities you should highlight. Talk up how your house is located a 15-minute walk away from a major transportation hub. Mention that it’s located in a good school district or that the neighborhood is great for growing families. If your home is the ideal tear down, don’t be afraid to mention it!
5. Focus on Repairs and Work Worth Doing
Do you have a buyer that’s interested in your home, but is still on the fence about buying? If you can’t negotiate on your asking price, think of other ways to make the purchase more appealing to them.
Think about little repairs you can make that can help the home. Replacing carpets and painting rooms are relatively inexpensive improvements you can make that can really make an impact on how the house looks. Consider replacing door hinges, do a little gardening work, or even offer to add some fresh caulk to the bathroom.
If you can’t make repairs, think about things you can do to make things easier on their end. Offer to rip up carpets or remove old appliances before you vacate the house.
Source: ibuyer.com ~ By Ryan Fink ~ Image: Canva Pro