The traditional method for selling a property requires doing whatever it takes to make it as appealing as possible to prospective buyers. Typically, the owner must make improvements and upgrades such as painting, remodeling the bathroom, or replacing an aging garage door, as well as performing those long-postponed repair jobs. An alternative to the conventional selling method that works well for many property owners is to put their real estate on the market in “as is” condition.
What Does It Mean to “Sell As-Is”?To “sell as-is” means the seller puts their property on the market in its current state, whether it’s in immaculate condition, or in need of repairs, or it’s something in between. They make no repairs or renovations.
Can a Home Be Sold As-Is?Absolutely! It’s completely legal to sell a property as-is. However, this does not relieve you of your obligations to prospective purchasers. You and the buyer must reach an understanding — and put it in writing — that the buyer will inherit any situations with the home and that you will make no additional repairs or improvements while the transaction occurs. As the seller, you must disclose what you know about the property and provide truthful answers to the buyer’s questions regarding the condition of the property.
What Are the Pros and Cons of Selling a Home As-Is?The pros of selling a property in its current condition include:
- Saving money on upgrades: Selling real estate as is can make sense if you don’t have the funds to make repairs or renovations. In this case, you may have no better option.
- Relieving financial stress: If you’re having a tough time financially — maybe you’ve fallen behind on your mortgage payments — selling your property as is can provide a fast solution. Many real estate investment companies will pay cash for your property, and you may be able to make an immediate sale.
- Avoiding a drawn-out sales process: If you’re seriously ill or simply have other priorities, selling a property as is can keep you from having to deal with all the details of a complicated real estate transaction.