Advantages Of Selling A Home As Is

Real Estate Pics - Selling As Is Kitchens

When someone is deciding to sell their house one of the biggest decisions to be made is what, if anything, they will do to prepare the house for the potential buyers.  Do you put a lot of money into fixing things, just put a little bit in to address the most obvious issues or do you just put it on the market as is?  There are good reasons to choose any one of these and your personal situation will need to dictate what makes the most sense.

In this article we are going to focus on the advantages of selling a home as is.

What is Selling A Home As Is?

Selling a home as is simply means that you want to sell the house in its present condition without doing any additional maintenance and repairs to it, and do not want to do any during the sale process.  Now if you did a full remodel of the house 3 years ago and have diligently maintained the house then selling “as is” is not really a big deal as there is little if any work needed in the first place.  However if the house hasn’t been updated in 30+ years like the “We Love The 80’s” house we talked about in a previous article in our home improvement series then it is a much different situation.  Even worse is if you might not be living in the house anymore and it is as the point where the place is not even inhabitable without doing significant repairs on it.

What Are The Advantages of Selling A Home As Is?

 

Renovations are Expensive!

So the most obvious advantage of selling a home as is is the fact that it is quite expensive to do significant home renovations.  In the “We Love The 80’s” house mentioned above we came up with a $73K renovation cost just to make needed repairs and make it somewhat marketable for today’s buyer.  With spending that much there were still many significant items that were not even touched.  Similarly in our next article in the series about “The Neglected Rental House” it was even worse since while the first one we assumed that while dated the home owner took some pride in the home and kept it in relatively good shape.  In the 2nd one we assumed years of hard living by several different tenants and much fewer items that could be refurbished vs. replaced.  For that example we came up with a cost of $117.5K to make it marketable.  The other jarring thing with spending that much money is that you also were only expecting to recoup about 80% and 84% respectively the money put in.  So in each of these cases you would put in around $15-20K that you have little hope of getting back just to make the place more marketable rather than selling the home as is.

There is Always More to do…

A major point also in these case studies is that there were a lot of things that were not done.  In neither case was any significant work done to the plumbing, electrical or HVAC systems.  A full replacement of any of these can easily run you into 5 figures for each.  If the property has been vacant for a long period of time and major work has to be done often you would be forced to bring these major systems up to modern code as part of the work done.  So even if you were willing to do some of the other work these could be a $30K+ wild card when doing the work.

How Will You Pay For It?

Now of course one HUGE reason for selling a home as is rather than doing these expensive repairs is simply that you can’t afford to do them and have no way to pay for them.  Unless you have a lot of cash in the bank or a lot of equity to get a significant HELOC on the house it will be very hard to for most people to come up with that kind of money to fix their house just to be able to sell it.  Some homes will be marketable on the retail market without doing the work, or much less, but others will only sell at steep discounts when the work is significant enough.

Living in a Construction Zone Is Tough!

Even if costs were not a factor for you, it is just not easy to live in a house that is going through major renovations.  I have lived though this myself and let me tell you it is not fun to not have a working kitchen for several weeks!  If you are totally redoing the bathroom in a 1 bath house how much fun do you think that will be?  Even the best most competent and anally clean contractors will not be able to keep from generating significant dust and debris pretty much every day for the duration of the project.  For the kind of major work in the case studies this could take MONTHS to complete.  This is a very big non-financial consideration to factor in when deciding on doing the renovations or when selling a home as is.

Working With Investors:

When selling a home as is your biggest pool of buyers will often be investors.  The good thing about working with an investor is that they understand that you do not want to, or just can’t, do the repairs and they will take full responsibility for tackling those issues once they purchase the house.  They also usually can buy the house quickly and with less hang-ups since they will usually will buy the house with cash, with a loan from a private individual or institution or with a commercial mortgage that has a construction loan component all of which allows them to purchase without making certain repairs before a loan can be approved like a new homeowner would.

Are you thinking of selling a home as is in Massachusetts or Southern New Hampshire?  If so click on the “Schedule a Consultation” button and we can let you know what we do and how we can help you sell your house fast and easy.

 

Please leave your comments and questions below about selling a home as is

 

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