FAQs for Selling a House As-Is
So you’re selling a house that’s got a few issues. Perhaps the roof needs replacing, or there’s a leaky faucet. It’s understandable that your home has some small imperfections. After all, more than 30% of Massachusetts homes were built before 1940.
The problem is, renovations aren’t as simple as they seem. They’re expensive if you hire professionals, and they can be even more expensive if you try to do them yourself without proper experience. They’re also time-consuming, which is an even bigger problem when selling houses is your business. So what do you do?
Thankfully in Massachusetts, you can sell a house as-is, but there are important things you should know first.
What Does “As-Is” Mean?
Selling as-is usually means the home is a fixer-upper. It means you won’t be making any repairs or renovations before selling the property. What you see is what you get, and that’s often reflected in the price.
Do I Disclose the Home’s Issues?
As Massachusetts is a state that follows the legal rule of “buyer beware,” you don’t have to actually disclose these issues. The only things you are legally required to disclose are the existence of lead paint, septic systems on the property, and anything a potential buyer asks outright.
However, home buyers are allowed to ask questions, and you are required to answer truthfully. The potential buyer is also free to conduct a home inspection before money changes hands. Home buyers might be willing to buy a fixer-upper, but that doesn’t mean they won’t want to know exactly what they need to fix up.
What are the Pros of Selling As-Is?
First things first, you’re saving money because you’re not spending any on repairs. The expense of renovations can set you back thousands of dollars. This can be quite the hit, especially if you’re a real estate agent just starting out. So if the repairs aren’t something you’d consider off-putting to potential buyers, it might be worth leaving them alone.
In the past few years, houses sell quicker than ever, usually to the point where buyers bypass the home inspection process. This is because they’re worried you’ll receive a better offer if they wait too long, so they are willing to take the extra risk. This is especially common for houses being sold as-is due to their lower price – with how expensive houses can be, a new homeowner might decide the potential risks are worth having a roof over their heads.
You also might luck out and end up selling to a company looking to tear the house down and build something new. They don’t care much about any necessary repairs, as they’ll be rebuilding from the ground up so they can sell the newer house for a profit.
What are the Cons of Selling As-Is?
Because you’re selling a house with some issues, you’ll be offering it at a cheaper price. This means you won’t be making as much money off of the sale. Houses being sold as-is tend to see offers for 25% less than the market value. Depending on the housing market, however, this could still be an acceptable price.
It’s up to you if the trade-off of lower profits is worth a fast sale and not having to spend thousands of dollars on repairs. Just be sure to be honest with potential buyers about what they’re getting into. After all, as a real estate agent, much of your business will come from referrals, so having a fair, trustworthy reputation is key to being successful.