There might come a point in your life where you have to sell your house for a reason. People sell their houses for different reasons. However, one thing is for sure. Everyone wants to earn as much as they can from the house. Sometimes, homeowners can’t earn a profit from their real estate property. The best move when this happens is to sell a house as-is.
Some homeowners would think that doing repairs sells the house faster. In some ways, this is true, but repairs also take time. Selling your house as-is can be the best option for some because it requires less work and does not require a real estate inspection. The only real downside of selling a house as-is is that most real people who sell a house as-is tend to sell their properties at a lower price.
In this article, you will know the definition of selling a house as-is, the pros and cons when you sell a house as-is, and everything else that you need to learn when you sell a house as-is.
What does it mean when you sell a house “as-is”
Selling a house | Photo from Freepik
When you sell a house “as-is,” you sell the house without repairing or doing any maintenance work beforehand. This means that a buyer gets what they see and they are the ones responsible for repairs. People that sell a house as-is usually notify that they are selling the property in its exact condition.
Pennsylvania laws when you sell a house as-is
When you sell your house as is, no inspection is required. However, the seller and real estate agent must disclose all the repairs that need to be done to the property. For instance, homebuyers in Pittsburgh have the right to know the defects of the as-is real estate they are buying under Pennsylvania laws.
As Pennsylvania law mandates, real estate owners shall have disclosure of material defects that a real estate property has. As a general rule, the disclosure should satisfy the requirements of the State Real Estate Commission.
These requirements include:
- Seller’s expertise in contracting, engineering, architecture, or other areas related to the construction and conditions of the property and its improvements.
- When the property was last occupied by the seller.
- Basements and crawl spaces.
- Termites/wood destroying insects, dry rot, and pests.
- Structural problems.
- Additions, remodeling, and structural changes to the property.
- Water and sewage systems or service.
- Plumbing system.
- Heating and air conditioning.
- Electrical system.
- Other equipment and appliances included in the sale.
- Soils, drainage, boundaries and sinkholes.
- Presence of hazardous substances.
- Condominiums and other homeowners associations.
- Legal issues affecting title or that would interfere with use and enjoyment of the property.
- Condition, if known, and location of all stormwater facilities, including a statement disclosing whether ongoing maintenance of the storm water facilities is the responsibility of the property owner or the responsibility of another person or entity.
Why would someone sell a house as-is
A relocated family | Photo from Freepik
There are several reasons why a homeowner would sell a house as-is. Among these reasons, relocation is probably the top reason. If a family needs to relocate to another area, they are most likely to sell their house as-is instead of improving the home. Selling their home as-is is a better option if a family needs to relocate fast because repairs and maintenance take time.
Another reason why homeowners would want to sell a house as-is is that they want to cut back losses. When a homeowner cannot maintain a real estate property, they might sell a house as-is. Now that homes might have increased mortgages, buyers might consider buying as-is real estate and shoulder the needed repairs if it is the best option for them.
Other times, homeowners sell a house as-is because they are in debt on the property and they can’t afford payments. Selling a house before foreclosure is a way to get out of property debt and mortgage payments. People who inherited real estate from a deceased family member might sell their house as-is for the same reasons.
And lastly, homeowners might sell a house as-is if there is a sad or horrid memory they remember of the property. This could be death, divorce, or anything that seems traumatic for them.
Pros and cons when you sell a house as-is
When you sell a house as-is, you are more likely to sell faster because of a few reasons. First, as-is real estate is quicker to sell. As-is properties are easier to sell because they are more affordable than houses that are repaired. Buyers are willing to pay in cash for as-is properties and because of this, sellers have no paperwork and approval to wait. Sellers don’t also have to wait for repairs to finish before selling a house as-is.
Selling a house as-is also gives the sellers the luxury of selling a house without spending on repairs. Once they list the property as-is, they don’t need to do anything but market the property, secure a buyer, and make sure that the property is sold. Some loan providers even approve loans for house repairs. That means that a buyer can have a house with a low mortgage while having a loan to cover repair costs.
The primary disadvantage when you sell a house as-is is the market value of the house. Yes, you’ll save some cash when you sell a house as-is, but as-is properties have lower selling prices. This is because fewer people would want your property and there will always be bargainers who try to get the best deal.
Another disadvantage of selling as-is real estate is that fewer people would want it. There will be some buyers who would think that repairing an as-is house would be costly and take their time. Sometimes, even the word “as-is” deters some buyers because they would think that there is something irreparable in the house. While inspections are not necessary, sellers are recommended to hire inspectors to see the full condition of the house.
Lastly, the seller will lose money when they sell a house as-is. As mentioned earlier, some sellers sell a house as-is because they want to minimize losses. Selling a house as-is cannot increase your sale. Remember, people mostly sell a house as-is because they want to sell quickly, and not to make a profit.
How to sell a fixer-upper house fast
Disclose that you sell a house as-is
As mentioned earlier, you need to disclose everything about the property if you are selling it as is because you are legally obliged to do so. That way, everything is clear and the buyer would have an idea of the responsibility that comes with the property.
Tell everything that needs to be repaired in the property and disclose that you are not paying for any of it. When making property listings online, put the words “selling as is” in your listings.
Do home improvements on the property
Repainting a house | Photo from Freepik
You are not required to change anything in your house if you sell it as it is. However, you can get a step ahead of other sellers if you do some home improvements and property cleaning. There are home improvements that you can do that won’t hurt your budget. One of them is repainting the house.
You don’t need to hire a professional painter to paint your house. You can do it by yourself once you have a can of paint, a paint roller, and some old newspapers. Another home improvement idea you can do is change the lighting fixtures and have the carpets cleaned. These are affordable, easy to do, and will attract more buyers.
Moreover, you should also keep the property clean at all times. Cleaning is a household chore and it won’t take you days to clean the house. You can do the cleaning one or two days before a showing. A presentable house is always easier to sell.
Market your house right
When making posts on property sites, the best way to market your house is to focus on the positive qualities that a house has. Houses that are sold as-is usually need repairs. Only tell that the house is sold as-is and do not tell the repairs that are needed. Instead, tell the size, number of rooms, nearby establishments, and everything good about the house.
Furthermore, it would be best if you used eye-catching keywords when selling a house. If you recently repainted a house, you can add the word “newly repainted” to your listing. You can use Google Keyword Planner if you wish to get real estate keywords searched in your area. But remember, one thing is more eye-catching than keywords, and it is pricing.
Make sure to sell your house at the right price. The best way to price your home is by hiring a realtor or looking at recent sales of homes in your area.
Sell my house fast (Pittsburgh)
If you want to sell your house as-is in the Pittsburgh area fast, you can sell your house to Buys Houses. We buy houses in Pittsburgh and make sure that you won’t have any hassle or inspections as discussed above.
Buys Houses Properties is your fastest way to selling properties as-is and we make sure that you have the best deal in the market. Our company does not collect commissions and makes sure that you close your sale in 60 days.