Typically, home selling is time taking process, but if you are tight with your schedule, you can sell your house in as-is condition. Selling a house in as is situation is convenient for those sellers who are in a financial crisis or not willing to spend a penny on house repair. So, in real estate, the “as is” condition means you are ready to sell your property in its current state, and the buyer accepts the house in the same condition.

Selling a house as is doesn’t mean

Here is the misconception that seller is selling his house in the current estate; that is true. But it doesn’t mean that he or his seller agent intentionally hide the defects or damage. For instance, if he or his real estate agent knows that a particular house’s basement is flooded in the rainy season, they should disclose it before closing.

In some states, it is necessary to provide the information regarding the house’s current condition to the buyer, even though it is as is deal. Legal action is taken if it is found that the seller deliberately misled the buyer by hiding home defects.

Things to keep in mind while selling “as is”

1. Try to deal in cash

Selling as is houses are low budget so, try to deal in cash. Sometimes bank refuses to finance a home or property which need repair.

2. Avoid bank intrusion

Usually, as is house selling means you are trying to sell your house quickly. But banks are renowned for their snail’s speed. Banks typically take more than 6 six weeks to close the deal.

3. Know the repair cost

Before selling a house, Seller hires an inspection team for a better estimate of the repair needed for the particular home. You can negotiate and close the deal better efficiently by knowing the repair cost. 

4. Keep it clean as much as possible

As a seller, you do not want to spend on major repairs; that’s fine. But to attract buyers, you can make the home clean when buyers visit. The yard should mow, and the entrance should be clean. Always open to view your house to buyers. By doing these small things, you can make an impact on buyers’ minds and, to some extent, hide major repairs fear as well.

Pros and cons of selling house as is

Selling a home as is favor the seller who is not interested in repairs. But if you have less knowledge about the real estate market, it may cause financial loss. Once you recognize all your available options, you can find a better way of selling your property.

So, selling a home “as is” has some advantages and drawbacks as well.

Reason of selling “as is”

1. Sell quicker than usual

Listing which has as is tag sell faster than usual houses. The main reason is that pricing is low for these unrepaired houses in the market. Flippers or low-budget buyers want to grab a low-cost home quickly. Due to low-cost people can buy a house with cash and cut extra paperwork and mortgage pre-letter.  

2. Financial situation of seller

As it is seen mostly “as is,” house selling is due to the dire financial condition of the seller. If it is not feasible for a seller to spend money on repairs and damage, he should have a choice of selling a house as is. However, seller can discuss his finances with his realtor for better solution.

3. Handling house repair

If you are in good financial condition but not willing to get into the repair process, or you are working on a tight schedule where you cannot be able to spend time on repair, you can sell your house as-is.

However, if you have some support from family or friends, you can repair your house and sell it for a reasonable amount.

Problems of selling “as is”

1. Buyer perceive home negatively

Generally, buyers see as is house listing negatively. They try to buy it for a low price. They also think your house needs lots of repairs or maybe damage is unrepairable.

2. Buyer spend less

After hearing as is home, buyers cut short their offering for the house. They think you are desperate to sell your property; they offer low prices and try to buy a house for less than the market standard cost.

3. As is attract fewer buyer

The upfront tag of “as is” attract the fewer buyer to your house. Firstly, let potential buyers come and see your home, then you can tell and convince them on as is condition.

4. Take more effort to sell house

As is house usually take more effort of yours and your realtor to sell. Because there are some doubts in buyer’s mind or may be trust issues that why you are selling as is. So, the seller has to be patience in as is condition.