4 Reasons Why You Shouldn’t Sell Your House ‘As Is’

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4 Reasons Why You Shouldn’t Sell Your House ‘As Is’

4 Reasons Why You Shouldn’t Sell Your House 'As Is'

4 Reasons Why You Shouldn’t Sell Your House ‘As Is’

The roof is caving in, the power doesn’t work, the foundation is cracked and you can’t see the bathroom floor. The kitchen has nice countertops, though. You should probably sell this house ‘as is,’ put the check in the bank, and cut your losses.

Selling a house with the label ‘as is’ is not as quick and dirty as you might think. You actually stand to make more if you choose not to sell your house as is.

What Does ‘As Is’ Mean, Anyway?

When you see the term “Sold As Is” on a home listing, it means that the seller is not going to make any fixes or changes to the property. If the roof leaks or the foundation sags in the kitchen, the ‘as is’ clause communicates upfront that the seller will not fix any fundamental issues.

Most of the time the ‘as is’ label is used to protect a seller from losing a sale that gets a really bad home inspection report. If a buyer chooses a property that is being sold ‘as is,’ they get the keys and every single problem the house comes with–no exceptions.

  1. You’ll Alienate Fixer-Upper Weary Buyers From the Get-Go

The National Association of Realtors found that 51% of buyers ultimately purchase the house they found online. If a buyer who isn’t interested in fixing up a home sees ‘as is’ on the listing, they’re going to click past without a second glance. A BMO study found that 71% percent of buyers are scared of what could go wrong with a house after they purchase it. Label yours ‘as is’ and you’re left with a measly 29% of people who aren’t afraid to tackle your place. Those odds aren’t great.

If you chose to put a little money to get the house up to par, scratch ‘as is,’ and get some amazing photos taken, you won’t alienate fixer upper scared buyers from the start.

  1. Top Real Estate Agents Warn Buyers Against Buying an ‘As Is’ House

The best real estate agents in the industry advise their buyers to “not even bother” with ‘as is’ listings.

If the best agents in real estate tell their buyers to avoid ‘as is’ homes, then you are missing out on a huge chunk of buyer potential. Put in a little cash from the start and drop ‘as is’ from the contract. You’ll raise the selling price of the house and be able to use the updates to communicate at the negotiating table why your home is worth more.

  1. People Flip Houses for a Reason

We’ll use HGTV’s popular show Flip or Flop as an example. Tarek and Christina buy houses ‘as is’ at auctions, most of the time without even seeing the property before they buy it. In one episode, the couple put $60,000 into renovations and made a profit of over $114,000.

That’s some serious food for thought.

Though it might be intimidating to put cash into your home before you sell it, your chances of actually making money on the property are much higher, so long as you don’t go too far above what people in the area are willing to pay for your place. Consult with your real estate agent to figure out how much money, and where, you should invest.

  1. ‘As Is’ Makes Negotiations Easier on Buyers

If you decide to go with an ‘as is’ label, buyers have a much more powerful argument in negotiating your price down lower and lower. As the seller you want to make the most money possible on your place, so eliminating ‘as is’ should be a no brainer. Yes, you’ll leave room for the buyer to ask you to make certain repairs. You will, however, have opened the door for more interested parties, which could equal more–and higher–offers, especially if you’ve put money into important fixes.

Additional Seller Related Articles and Information

If you or someone you know if thinking about selling their home, please do me a favor and share this post with them. Thanks for sharing!

About the author

The above article 4 Reasons Why You Shouldn’t Sell Your House ‘As Is’ was written by Alexa Collins as a guest post with my friends at Homelight.

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