A recent study from the National Association of Realtors (NAR) shows most sellers (61%) completed at least minor repairs when selling their house.
But sometimes life gets in the way and that’s just not possible. Maybe that is why, 39% of sellers chose to sell as-is instead (see chart below):
If you are feeling stressed because you don’t have the time, budget, or resources to tackle any repairs or updates, you may be tempted to sell your house as-is, too. But before you decide to go this route, here is what you need to know.
What Does Selling As-Is Really Mean?
Selling as-is means you won’t make any repairs before the sale, and you won’t negotiate fixes after a buyer’s inspection. And this sends a signal to potential buyers that what they see is what they get.
In Texas, an "as is" clause in a real estate contract means that the buyer agrees to purchase the property in its current condition without any repairs or price reductions. The seller is responsible for disclosing any known issues that may affect the property's value or desirability in the seller's disclosure. The seller usually calls out the fact they are only willing to make minor repairs in the listing. The buyer is responsible for negotiating any repairs or related concessions through their agent during the option period for an inspection.
If you are eager to sell but money or time is tight, this can be a relief because it is that much less you will have to worry about. But there are a few trade-offs you will have to be willing to make. This visual breaks down some of the pros and cons:
Typically, a home that is updated sells for more because buyers are often willing to pay a premium for something that is move-in ready. That is why you may find not as many buyers will look at your house if you sell it in its current condition. And less interest from buyers could mean fewer offers, taking longer to sell, and ultimately, a lower price. Basically, while it is easier for you, the final sale price might be less than you would get if you invested in repairs and upgrades.
That doesn’t mean your house won’t sell – it just means it may not sell for as much as it would in top condition.
Here is the good news though. In today’s market, as many as 56% of buyers surveyed would be willing to buy a home that needs some work. That is because affordability is still a challenge, and while there are more homes for sale right now, inventory is lower than the norm. So, you might find there are a few more buyers who may be willing to take on the work themselves.
How an Agent Can Help
A good agent will help you weigh your options by showing you what comparable homes in your area have sold for, what updates your neighbors are making, and guide you in setting a fair price no matter what you decide. That helps you anticipate what your house may sell for either way – and that can be a key factor in your final decision.
Once you have picked which route you are going to go and the asking price is set, your agent will market your house to maximize its appeal. And if you decide to sell as-is, they will call attention to the best features, like the location, size, and more, so it is easy for buyers to see the potential, not just projects.
Bottom Line
Selling a home without making any repairs is possible in today’s market, but it does have some trade-offs. To make sure you are considering all your options and making the best choice possible, let's have a conversation.
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