3 Options To Sell Your House As-Is

The Real Estate market offers plenty of options if a homeowner needs or wants to sell his house, but options will also reduce when the property for sale is an AS-IS house.

Sell your house as-is means you don’t need to incur expenses, repairs, or stress. A real estate sale in completed and to your favor when you are able to sell your house as-is.

What is It Means to Sell Your House As-Is?

Selling your house as-is means the property is for sale in its current condition, with zero responsibility on the seller to repair it beforehand. Although, the term AS-IS is applied to a property that presents Physical anomalies, such as:

  • Major or minor damages.
  • Vandalized.
  • Fire
  • Natural disastrous damage.
  • Tenant misuse.

The term As-Is also means damages that aren’t obvious such as:

  • Liens 
  • Foreclosure
  • Downsize
  • Relocation
  • Divorce

If you decide to sell your house As-Is, but its conditions are an obstacle, the real estate market offers you options. Also, you have the right to get the top price for your house. Three of the most common methods to sell a property are; first through the market. Second, For Sale By The Owner (FSBO,) and third, Selling to a professional home-buying company.

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Before deciding which method suits you to sell your home, we recommend hiring an appraisal to value your property. Doing so will give you a better footing when the time to negotiate comes. 

Sell your house As-Is

Does the Market Wellcome As-Is Homes?

Usually, As-Is homes are a stone in the realtor’s shoes. They do not feel comfortable because the market standards look for properties for sale in excellent condition. However, the industry is dynamic and diverse, and there is always a spot for homeowners in need of selling their houses. 

What are the three most common options to sell a home in its actual condition?

Option 1, Hire a Real State Agent

Selling a home “as is” may sound like a promising opportunity, but the process is more complicated than you think. It’s a common misconception that if a seller adds “as-is” to his listing, he will not have to participate in the selling process.

An As-is home seller has the same responsibility and obligations as any other person selling his property under a contract. Under an As-Is sales agreement, sellers must disclose any known problems with the property. They are not required to fix the issues, but potential buyers must get information about the property’s physical situation from the beginning of negotiations.

It is known in the market that a few agents are willing to include properties with issues in their sales chart. However, if you decide to sell your house as-is through an agent, chances are he or she will reject your business because of the house’s condition. Agents want you to understand that putting up a house free of problems is not the same as putting up a house full of necessities.

When a house demands a lot of work and the homeowner can not afford repairs, they think an agent will help, bu,t unfortunately, in most cases, the agent decides to walk away.

Sell your house as-is

It is convenient to weigh the pros and cons of selling your house as-is through a Real estate agent.

Pros of Hiring an Agent

There are some benefits to hiring an agent to sell your Home As-Is.

  • Listing. Realtors have access to a vast network.
  • Knowledge. Agents are well-trained persons to manage the sale documentation.

Cons of Hiring an Agent

Results are not the same when you list your As-Is home.

  • Offers. Most homebuyers prefer to make an offer on good-condition homes.
  • Time. Usually, it takes longer to sell a house that is not in the best condition.
  • Visits. Although the number of visits is less for an As-Is house, the homeowner has to schedule and manage visits.
  • Advertising. You must pay for ads if you want to reach more potential buyers.
  • Price Reduction. You might have to reconsider your sales price.
  • Breach of Contract. It is not uncommon for one of the parties to request the rescission of the sales contract due to the absence of the buyers.

Costs

Although you are selling your home As-Is, you must incur some expenses. 

Even though you are not expending any money on home repairs and other improvements, there are costs associated with selling your home. Real Estate Agent commissions are 6% of the selling price. There is no fixed norm on the commission percentage, but the practice has placed it at the 6%.

Closing costs are around 2.5% of the selling price. There is no way a seller can skip paying realtors and closing costs.

Realtors earn based on commissions. Then, they prefer to sell at higher prices because they would receive higher revenue. Therefore, they have a preference for excellent-condition homes. 

The average waiting time to sell a house through an agent runs between 91 to 180 days in normal conditions, but when an As-Is home is listed, the waiting time is indefinite. A low percentage of homes with problems are sold through the Real Estate market, which makes this option unsuitable for a homeowner who needs or wants to sell right away.

Remember that while you are waiting for a buyer to your home, you must continue with mortgage payments, utilities, maintenance, taxes, etc.

Option 2. For Sale By Owner (FSBO)

A significant benefit of selling your home without the help of a real estate agent is that you save on commission. However, you have to negotiate like a pro if you want to sell your house for cash quickly. Be prepared to negotiate escrow timelines and deal with marketing and contract paperwork.

When a potential buyer shows up, you can accept or reject offers without an agent’s approval. Selling your home by yourself gives you a chance to control and manage home visits and the flexibility of negotiating freely. 

You may save money on commissions and other expenses. However, you may reach an agreement with your buyer to split costs. In addition, if your buyer has an agent, you are responsible for a 3% commission.

Going down the FSBO route and selling your house yourself is no easy endeavor – it can be an immense challenge. Also, it is a good idea to consider consulting an attorney to help you with all legal requirements.

During the post-pandemic period, about 5% of the properties for sale by the owner were sold. The real estate market has experienced unexpected shifts that challenged the patience of sellers and buyers. FSBO is by far the most challenging home sale method.

In general, properties for sale by the owner take 25% more time to close than ones through the market. Many buyers don’t feel comfortable without a professional representing the parties. The chance of things going wrong and eventually requiring professional help is always there.

The FSBO sell your house as-is option work perfectly when homeowners do not need to sell quickly.

Sell your house Fast Portland
BOHB team

Option 3. Selling to An Investor

There are multiple benefits a homeowner gets by selling their homes off the market. Selling houses as-is to professional home buyers has been the most used method for the last 20 years. We want to highlight homeowners’ most relevant benefits by selling their homes to an investor.

Home Inspection: An inspection is needed regardless of the method you use to sell your home. It will give tranquility to the seller and buyer. Important home spots need to be checked; Condition of the roof – Air conditioning System – Plumbing/leaks. The general condition of walls, doors, windows – Structural components – Attic and visible insulation – Front and back yards, Garage – Pets infestation, and everything that may affect the house’s health. Traditionally, A home inspection cost is on the seller, but Investors take care of that cost for you.

Appraisal Needed. The appraisal report is key to evaluating a property. It is directly related to the home inspection, and in many cases, they are combined as one service that the homeowner must pay. When you deal with an investor, they carry this cost.

Average of Days Until Sold. The days a property is on the market vary. On average, a real estate transaction takes from 91 to 180 days. However, the time goes over a year in many cases, and sometimes homeowners have to reduce the sale price dramatically to sell quickly. 

Number of Showings. On average, a home for sale receives 20 visits that homeowners must schedule and manage. If you hire an agent or want to sell your home yourself, you are in charge of the visitors. On the contrary, Investors visit your home once, and after that, they will present you with an offer.

Repairs. The real estate market lists houses that need repairs, but the sale chance is minimal. The cost of repairs is the homeowners’ nightmare. They can go from a few hundred to dozens of thousands, which probably is the biggest issue a homeowner must confront. If you sell your property to an investor, you don’t need to worry about repairs. 

Commission Fees. The seller pays commissions to the agents involved in the buy-sale transaction. 

Closing Costs. The seller pays for the closing costs.

Closing Date. If you have an agent or are selling your home yourself, you’ll never know when your closing date will be. Also, your agent cannot guarantee a closing date, nor will the house ever sell.

Clark Sold His Home Off Market in Portland Oregon

Selling Your As-Is House to an Investor.

Regardless of your decision, always do it after you take the time to weigh your options. 

A Professional home buyer allows you to sell your home quickly. You must expect from an investor:

Communication: Investors respond to your calls or email at any moment. If you submit your information through their website, you will receive an answer in less than the next 24 hours. 

They have professionals in several fields, such as Lawyers, Accounts, Real estate experts, and Financial Advisors, and an excellent support group ready to answer any question you may have.

Experience: Many professional home buyers have been in the business for years. Their expertise allows them to solve any problem related to properties. They can deal with any situation in your state or the US.

Costs: You don’t pay commissions, closing costs, or other expenses. The costs associated with the purchase of your home are carried by the buyer (Investor.)

If you list your property or want to sell it, you must pay about 90% of the costs.

Closing Time: After you accept an investor’s offer. Expect to close in about seven days. Investors can close in such a short time, mainly because they have the capital to buy houses. Even though you don’t decide on the offer soon, you can retake it later and close the deal. In summary, you are in control of the closing time. The market takes more than 91 days to close a deal. If you sell by th2 owner, you should wait about six months to sell your house.

Also, take into account the time you are waiting for the closing. You must continue with your ordinary home expenses. There is a big difference between the money you pay to sell your home through the market or FSBO vs. a Professional home buyer.

In Summary

Regardless of its condition, You can sell your home through the Real State Market, FSBO, or to an investor. You don’t need to worry about home repairs or other issues if you sell your house As-Is. However, the market and the FSBO require your time to handle visits and money to pay for advertising, commissions, and closing costs.

Selling an As-Is house can go from 91 to 180 days. In many cases, the house sale operation has to be suspended due to excessive time without results.

While the As-Is property sale is close, homeowners keep making payments for mortgages, utilities, home maintenance, and property taxes. The closing time and final sale price is not predictable.

You will receive the highest possible price when an investor purchases your home. The closing time is about seven days only. Sometimes for different circumstances, the closing could be two days or a little longer.

A professional team is at your service at any time. You are allowed to make any arraignment that comes to your benefit. For example,

  • After the sale, you need time to move out.
  • You can sign a temporary rental contract if you want to stay longer on the property.
  • Investors can help you with your relocation.

You can ask any questions you may have about selling your property without obligation. You can receive a cash offer for your house at any moment.

When it comes to selling your house as-is, Contact us.

Scott

Hi, I'm Scott Dalinger a real estate investor in Portland, Oregon. I focus on helping homeowners and rental property owners out of negative situations by offering cash for their property. I research and write about real estate on my business website.

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