When does selling a house as-is makes sense? One of the best definitions for selling a home as-is would be to sell your your property with an agreement that no repairs will be made. There are several reasons for sellers to consider selling their homes as-is. The property is located in a neighbourhood with a high turn over rate where new construction is active. Typically, builders are on the lookout for a property to build. The seller is in financial difficulty, and repairs may be costly and time-consuming to be considered. A job relocation may also be the reason for the seller to consider selling as-is. Finally, some family issues may force an immediate sale.
At the first look, it may seem selling a home as-is is a straight forward process. However, there are complexities associated with selling a house as-is and the advantages and disadvantages. At the first look, it may sound attractive that you don't need to do repairs. However, many sellers think that they're entirely off the hook if their home is sold as-is. That depends on where you live; you may have legal requirements to provide a seller's real property disclosure. You may have to give a statement of disclosure as seller, disclosing any defects about that property that you may know of since the time that you've owned that property. That means the seller is required to go through the appropriate course of making your full disclosures.
There are four disadvantages to consider that I like to focus on here when selling as-is.
(1) buyers will perceive something's wrong with your home. At this point, buyers will try to figure out what is wrong with the property. Most likely, some buyers will be uncertain whether they wish to take on the issues that come with the property, which means some buyers may avoid the property altogether.
(2) Some buyers will look at a comparative market analysis on your property, and you may get an offer that's probably coming in 15 to 20 percent below the market value.
(3) Many home buyers prefer move-in ready home or at least a home that requires minimal decorative work. This is another reason fewer buyers will consider a home sold as-is.
(4) In some areas financing a home sold as-is may prove difficult. Likely, buyers will have to have a home appraisal done. Depending on the home condition, financial institution, and area, some loans may not be available, eliminating some of the potential buyers.
About the author: The above Real Estate article was provided by David Khosravi, a leader in his field in Willowdale, North York, Toronto. Reach out to David via email: email@example.com or by phone: 416.990.2424