When it comes time to sell your home, you have some choices to make.
Are you willing to spend your money to make the necessary repairs to sell your home at full market value?
Or
Will you try to sell your home "as is" in Syracuse NY without making any repairs for the sale?
When it comes to selling your property "as is", you are basically just letting your buyers know that you are not willing to make any repairs to put the home in better shape. By selling "as is", you are letting your buyers know that there may be some issues with the home or some serious TLC that is needed.
When you decide to sell in the manner, make sure that you understand that you will need to sell your home at a discount.
Home buyers are becoming more picky and have proven that they will pay over full market for a home that is fully rehabbed. Selling your home "as is" will cut down the number of potential buyers that you can sell to, due to the fact that extra work will be need after the purchase and home buyers do not want to take on this responsibility.
I want you to understand that just because you are selling your home in "as is" condition, does not mean that buyers will not try to negotiate the price of the sale of your home. However, you will not be required to get the home inspected or bring the property up to code - unless you are selling to a buyer who is getting an FHA loan. The FHA requires that all sellers bring their properties up to code and that they pass an FHA inspection before closing.
Why Do Homeowners Sell Their Home's As Is
Potenital buyers may be wondering why sellers would be forced or try and sell their properties in "as is" condition. There are several reasons that a homeowner would be forced to sell their property in this manner. Some of the more popular reasons you will see are:
The homeowner does not have the funds to make necessary repairs
The home has been inherited and the new owners are unaware of the history on the home.
The seller is dealing with serious health issues
The homeowner's have recently went through a divorce
The homeowner needs to relocate due to a new job or family complications
The homeowner is behind on their mortgage or has not paid their taxes
Options When Selling Your Home in "As Is" Condition
Selling your home in "as is" condition can become a bit tricky. As the homeowner you should understand the necessary repairs that you are neglecting and realize that the price you will receive for your home will reflect the repairs that were not completed. The typical sale options are available to homeowners are want to attempt to sell their property in "as is" condition, expect these options become a little more difficult. There are certain steps you can take to maximize your success rate and receive a price for your home that you will accept.
1) Listing Your Home With A Real Estate Agent - This is the first option that many homeowners who are selling "as is" typically take. If you do decide to go this route, make sure that you hire a real estate agent who is worked selling properties in "as is" condition. Real Estate Agents who have worked selling in this category are likely to have a list of cash buyers that they have worked with in the past. These cash buyers - also referred to as real estate investors - typically purchase homes in poor condition.
It will be very difficult to sell your property to a traditional buyer as most lending agencies have restrictions on offering loans to buyers, where the property needs extensive work. The ultimate reason is due to the appraisal process that banks take. If there are major repairs that are needed, then the banks appraiser will request that these repairs be made prior to closing.
As we stated before, even though your property is listed in "as is" condition. Home buyers will still try to negotiate the terms and price depending on how much work has to be done to the property. Hiring a professional real estate agent to work for you can help with these negotiations and get you a price that will work for you.
2) Selling To A Real Estate Investor - When you decide to sell to a real estate investor, you are basically cutting out the agent and their commissions. This means that it is possible that you will be able to get a couple more dollars out of the sale if you are able to obtain a similiar sales price as the agent was going to get you. If you are going to sell directly to a real estate investor, make sure you work with a reputable business who has purchased homes in the past. The best way to do this is to do a quick google search for "we buy homes in City" or "real estate investors in City". This should bring you to companies in your area that supply this service.
There is a different process that takes place when you decide to sell your home directly to a real estate investor. You will now be handling the negotiations and the real estate investor will give you a cash price for what they believe your home is worth. If you are interested in the process of selling to a real estate investor, this article will help.
Using this option, you are basically selling your property for sale by owner. Except when you sell to a real estate investor, you will not have to pay any commissions, closing costs, repair costs or hidden fees. The cash offer that they give you will be the total amount you receive minus any mortgage, liens or tax deficiencies. They will also be able to close on your property in 14-21 days depending on the title work.
Price Your Home Accordingly
Now that we understand our two options when selling our property "as is", we know that we are going to have sell our home at a discount. Pricing your home right is one of the most important aspects to any sale. Your potential buyers pool will be limited to real estate investors and cash buyers. These individuals that decide to move forward with a purchase will have intentions of either rehabbing and selling or rehabbing and renting. So if you do price your home in a range that works for investors, then you should have no problem selling your property.
I want to discuss quickly how an investor will evaluate your property for the sake of an investment. The most important number to investors is the after repair value (ARV). This is the price that your home would sell if it was in perfect condition or the full market value. The next number they look at is the repair costs. How much will it cost them to fix the property up. They will also look at the holding costs or costs accrued throughout the life of the project (utilities, taxes, insurance). Last but not least, they will include their estimated profit. So there formula looks something like this.
ARV - Repair Costs - Holding Costs - Profit = Maximum Purchase Price
Conclusion
If you decide to sell your property in "as is" condition, understand that you will have to sell your property at a discount in a price range that will be beneficial for a real estate investor. Educate yourself on the process and what it entails and then decide which option you want to use to sell.
If you have had any experiences selling your property in "as is" condition, let us know in the comment section below. We are always interested to hear about the results homeowners have had selling this route.