When someone decides to sell their home, they might not want to go through the whole process of getting a home ready to be sold. That means that they won’t make any further investments into the property before they list it on the market. You can find these kinds of listings on listing sites like Zillow and Realtors all the time described as “property sold as is” or something similar.
The “as is” is the condition of the house at the point when the owner decides to sell it. The reason behind this decision is entirely up to the seller. They might be pressed on time and want to make the sale as soon as possible. They might also need some quick money for whatever financial need they have. The reason isn’t relevant. What is relevant is how this condition impacts the price of the home. While some renovations can increase the property's sale price and increase return on investment for the seller, not all have that power and the seller winds up loosing money.
Many homeowners that decide to sell their house as is, often wonder if they will lose money for this decision, and if yes, how much money they lose for selling a house as is. This is a question that does not have a straightforward answer. No one can tell a homeowner what the expected drop in price can be for not fixing up the house before they sell
It is clear that a property sold in the best possible shape will get higher offers as the prospective new owner can move in it without going through a long lasting, costly and stressful renovation process. However, when someone purchases a house “as is” they most likely need to do some renovations before they move in, or soon after. These costs that the new owner will need to cover need to be taken out of the property’s sale price.
At the same time, someone who sells a property “as is” isn’t required to fix anything on the property because they might not recover the investment. For instance, if you spend $20,000 on fixing up a kitchen, you shouldn’t expect to get back the $20,000 when you sell. While there are things that you should fix before selling a property, those are usually things that you should fix when you live in it for your own safety. Repairing issues right before you sell means that you won’t benefit from these repairs and the return on investment might not be there when you close the sale.
However, some repairs can boost the property’s value. Figuring out which are worth the investment and which aren’t is tricky. If you work with a real estate agent, consult them on what should and what shouldn’t be fixed. Their experience in the field will help you decide whether full on repairs are necessary or if, maybe, some careful staging can increase the property’s curb appeal enough to make it more attractive to potential buyers.
So, before you contract any renovators, consider this. What reasons do you have to sell a home without those renovations? If you are pressed on time, there’s no need to go overboard with renovations before you sell. Just list the property and get as much as you can on it as is. If you need some money fast and getting the most out of the property isn’t as important, list it as is and cover your expenses fast. In many cases, an as-is house won’t spend more time on the market because, if it’s priced correctly (real estate agents can help with this as well), prospective buyers can see it as a bargain. Most new homeowners renovate their homes before they move in anyhow, so selling a house as is isn’t a bad idea in many cases.
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