Thursday, November 19, 2015

As Is, Or As It Will Be?

Property owners often think they cannot sell their house unless it is in perfect condition. They have a misconception that they must fix and renovate their house to be able to sell in today’s market. They hesitate to sell their property "As Is."



While in most situations move-in ready condition is highly desirable, not all sellers can afford the time or expense to undergo this process. 


Reasons


There are various life events that can happen making it difficult for an owner to present a house in move in condition:

  • The most common reason is a financial hardship. If a seller doesn’t have the financial resources to fix the house, then there may not be a choice.
  • If there is a serious illness in the family, a seller may need to move immediately, or just be preoccupied with health matters and cannot undertake the extra burden of renovation. 
  • Divorce or the death of a spouse may leave one party overwhelmed or unable to prepare the house for traditional sale
  • Sudden relocation for career or family may leave an owner with other priorities and long distance renovations may not be an option.
  • A disaster such as a house fire, structural failure or flood may be too extensive for a property owner to take on if they have abandoned the property.


Disclosures

 


When selling a house in As Is condition, it is very important to be honest with buyers. Disclosures are a good way to objectively convey the condition of the property.  


There are standard forms for disclosing defects in every state. Some states require more information than others.

 

For more information on disclosures, read: Will Your House... Haunt You? 



Agent or For Sale By Owner


While it is possible to use a realtor to sell a house in less than perfect condition, owners often choose to list these properties on their own. When money becomes an issue, the hefty realtor’s fee may be more money than the property owner can bear to part with.

Selling a house privately is usually a good option, although it may take a little longer, especially during the holiday season.

Pricing


When selling a house that is not in move-in condition, it is important to remember that point when pricing the property. The price of repairs and to some extent, the time and inconvenience of doing the work should be factored in.

The best way to price the house is to research properties that have sold in the area. Once the cost of repairs has been deducted from the price of a traditional sale, you will have a good idea of what your property can sell for. 

It is important to stay open minded about your asking price and not to dismiss any offers without consideration.

Some buyers may offer a very low amount, but wave any inspection of the property. In some cases, having a guaranteed offer may be the best option.

If there is negotiation as to the price, a buyer may end up asking for an inspection of the property. In these cases, the purchase agreement may be contingent on inspection. The buyer will have the right to move forward with the purchase or walk away if any additional major defects are found during the inspection.

In addition, if the price seems too high, a buyer can still ask for repairs. The negotiation could take a lot of time and be frustrating. The sale may be cancelled.

It is up to the seller to determine if they can wait for another buyer at the price they have set, or if it is better to sell immediately and move on.

Specialists


There are buyers who specialize in buying properties in as is condition. When a property is in very bad shape, it is often called “distressed”. These buyers often do not care about the condition at all. 


They have team members that can deal with structural issues, clutter, hoarding and excessive garbage. In this way, the property owner is given relief from the burden immediately.

If you are putting your home on the market, the holidays can be a very stressful time. Most people are not focused on buying a house at this time. This may extend the time it takes to sell your property.
If selling during the holidays isn't something you wish to consider right now, we can help.

If you have come to the realization that it is time to move right now to have a better life, but your house isn’t ready for market, we can help. 

If you are juggling too many responsibilities to sell your house yourself this fall, then there are people who specialize in the sale of properties "as is" - usually within a week to resolve the situation quickly. We have a team of professionals able to assist you immediately.

Contact us for details.


Next time we will look at warning signs buyers look for when buying a house.


So thanks for reading my post. I'm so glad you're here! 

And I really look forward to getting into more great stuff in future posts -- so that you can 

Turn Your House To $OLD!



Feel free to ask me any questions through the contact info below. I would be very happy to help.


Linda  623-335-2662







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Article Sources:

Lynda Bathory