Are you wondering if fixing up your house before you sell it is worth the headache and expense? For many, it is an enormous investment that can have a minimal return. Plus, some people just do not have the time or money to spend on fixing up their home. Each property owner has a unique situation to deal with, so the answers will be different. Read on to learn more about selling your home as is.
All About As Is Home Sales
Selling a home as is typically is about the physical characteristics of a house. On rare occasions, it might also refer to portions of the financial transaction, such as the deed or title.
- In the contract, the seller clarifies that there will be no negotiating about repairs or modifications pertaining to the structure. The buyer must agree to those terms before purchasing the property.
- Despite selling the home as is, the seller must disclose pertinent facts about the property that could affect the buyer. These facts would pertain to the value of the house and its livability.
Here are some prime examples of what sellers must disclose about the property to the buyer.
- Structural issues and problems with the foundation.
- Issues with mildew and mold.
- Plumbing problems.
- Environmental threats. Examples of this include a contaminated drinking water source, lead paint, or asbestos.
The Market for As Is Homes
There is a definite market for fixer uppers. Why? Because it benefits both buyers and sellers. Quite a few buyers need to economize and purchasing a property that needs TLC is an attractive option.
Some sellers are in a financial bind, or they are under the gun to move quickly due to their jobs. One thing they should keep in mind is that the property they are selling should only have minor cosmetic issues. Plus, they need to disclose any major problems to the seller before they sign a final contract.
The Big Question For Homeowners
Often it is more profitable to upgrade a property before putting it on the market. The return on investment is sound, but occasionally it is too expensive or time consuming. There is also a learning curve involved. Many homeowners have little experience performing major upgrades themselves and cannot afford to hire professionals to make them.
Research should be done before deciding to sell the home as is or to make upgrades. You should examine local real estate websites to see the condition of homes currently selling. Is your home in a ready to sell condition? Or does it need more work to get the price you want?
Ask yourself the following two questions when deciding.
- Do you have the time to upgrade the property?
- Are you able to swing it financially?
Each situation is unique. If your bathroom needs an update, and you have the time and cash-flow, make the repairs. But if your entire home needs a facelift, it might benefit you to sell it as-is.
Is It Worth It?
Making upgrades to your property can be a major investment of time and money. So how do you figure out if it is worth it or not?
List all the repairs and improvements needed and the estimated costs. Then add a few other items to the list.
- Appraisal costs.
- Escrow Fees.
- Buyer concessions.
In most areas of Kansas City, these additional costs will end up being 8 to 12 percent of the ultimate selling price.
Estimate the costs of repairs on the distressed property before listing it for sale. Be sure to cover the following items.
- Replace or repair old ceiling fans.
- Roofing repairs on all parts of the home, including sheds and garages.
- Exterior and interior paint.
- Damaged windows and ripped screens must be replaced or repaired.
- Replace or remove old carpeting. If you remove them, repair the flooring underneath.
- Fix holes in walls and ceilings.
- Address all plumbing issues.
- Appliances must be in good working order and still look attractive.
- The HVAC system should be in great shape.
Add the final estimated costs of making repairs and upgrades to your property, plus the selling costs mentioned earlier. These included escrow fees and inspections. Then consider the time needed to make these upgrades. If the repairs involve more time than you have, consider that when deciding whether to sell your home as-is.
Maximizing The Selling Price of As Is Homes
If you sell your home as is, there are steps you should take to get the best price even if its an older property. First, figure out the value of the property if you had made all the repairs needed. Then subtract the estimate you made on all the repairs and upgrades. This should give you an idea of the discount to offer buyers for your as is home.
Do not worry if your estimates are not exact. There are guides available online to help you determine these costs.
Many sellers then go through their list of upgrades and perform those they can afford financially and with the time they have. They prioritize those and then list their home on the market.
Cash Home Buyers
One option for sellers is cash home buyers. The cash home buyer purchases then fixes the as is home and sells it later. Many sellers who need to relocate quickly turn to this option because of the savings in time and money.
Something to keep in mind is that a real estate agent will often turn to cash home buyers if a property requires substantial repairs and upgrades. Often it is in the best interest of the seller to bypass real estate agents altogether. Selling it directly to a cash home buyer saves them the six percent fee they would owe the realtor.
Every homeowner looking to sell their house faces a unique situation. Is it worth it for you to sell your home as is? Should you make a significant investment in upgrading your house? Contact best Offer KC today online at www.bestofferkc.com or Call/Text Us at 816-281-5269 to find out if selling your Kansas City house as-is for cash is the right option for you.