When it comes to selling a home, there are many benefits to accepting a cash offer. When you do that, by working with a reputable real estate investment group or company, you can close the deal quickly and save money. Accepting a cash offer also means you can skip the expense, hassle, and the average 60-day time it takes to close the sale, what not to fix when selling a house.
But just as importantly, it means you can sell a house as-is.
In this article, we’ll walk you through some of the top challenges and advantages of selling your home for cash, as-is – so you can make a better-informed decision for your financial future.
What are your options?
Many people aren’t sure what their home is worth, so they hire a realtor and hope to get a higher priced offer. But do you know what your house is really worth? It’s important to remember, if you want your home to compete with others in the same market, it has to be in good condition. Fixing up the place could take time and money you don’t have. And don’t forget – a buyer’s mortgage lender will also insist that the home be worth the selling price.
There are times when you may need a quick home sale for personal reasons completely beyond your control. Those reasons could be divorce, job loss, long-term illness or simply inheriting an older home that needs a lot of work. When you just don’t have the time to wait for a higher offer, a cash offer for your home may be your best option.
You could also reduce the price and sell the home as-is. That means that you and the buyer agree that the sale comes with all the property’s current problems. The buyer must know what they are getting into.
Is it worth renovating a house before selling ?
There are advantages of selling a home as-is. But it’s best not to go overboard. Realtors pretty much agree that many sellers sink in far too much cash when fixing up their homes. Home sellers may think that all that fixing up will mean a faster sale.
But think about this: just because you spent $600 repairing that clunky air conditioner compressor, will the buyer increase his offer by that amount? Probably not. The buyer expects everything to be in working order.
But if your property needs tons of work, what then? Maybe it needs major electrical or plumbing repairs. If the home is in especially bad condition, you might not even be able to find a realtor willing to sell it for you.
Homes like that fall into the fixer-upper type. You may have even seen TV shows where house-flippers buy a run-down home and go all out to fix it up and then sell it for a big profit. Rin reality, it isn’t always so easy.
Some home buyers claim they are looking for cheaper fixer-upper homes. The truth is that they’re not really interested in a home that truly needs structural or heavy repairs. Those buyers will accept a home that needs minor work—painting, carpeting, and light fixtures, for example – but are afraid of extensive structural remodels because of the unknown time and cost.
The bad news is that buyers looking for cheaper homes often don’t qualify for the big loans. They try to buy on the cheap. They come up with sales schemes that aren’t necessarily dishonest, but don’t favor the seller. They are sometimes willing to fix up the place just to make it look good and sell it quickly, which means the good deal you think a house flip that flopped.
On the other hand, the average buyer intends to live in the home. They want the place to be in decent condition. So, an as-is home usually means fewer buyers unless your selling price is really, really low.
What to do before going down the fix-it path
First, you need to know the market value of your home. When it comes to home pricing, market value doesn’t always match the true value of a home. Why else would a San Francisco two-bedroom go for the better part of a million bucks?
Other ways? Do some comparison shopping. If you see a home for sale in your neighborhood, find out the asking price and see if they’ve done any work on it recently. If the selling price is higher, chances are that home has upgraded finishes, or a remodeled kitchen or bath.
You also might be in a hot market where there aren’t a lot of homes available. If that is the case, you could probably slide by with fewer fixups before you sell. But remember, if your home needs lots of work, it still may not get as high an offer (as you’d like) – especially because most buyers are looking to buy a ‘move-in ready’ home.
So, do this simple math: add up the costs of improving the home to where a realtor would be willing to list it. This will give you an idea of if it is worth doing those repairs in the first place.
Make a complete list of everything in your home that needs to be done. And be honest with yourself. Take a look at your home through the buyer’s lens. When buyers walk through your home and spot obvious problems, they will suspect there are others they can’t see.
Be sure to do an Internet search. You can get a good idea on how much repairs cost. Some handyman companies will give you an instant price quote. They might even do discounts if you offer them more than one job.
Even if you shop around for the best price, expect sticker shock. The truth is, major renovations and home repairs cost a lot. If you decide to do major fixes, here are a few of the costs you must cover:
About $150 per square foot for the average kitchen remodel. Home Advisor estimates between $13,158 and $37,003 to remodel a standard kitchen.
Angie’s List shows that bathroom remodeling can cost anywhere from $9,600 and $11,000, or more.
A complete carpet replacement, according to Fixr.com, runs at a cost between $7 to $12 per square foot.
Here’s the bottom line: Yes, the money you spent on fixing up the place keeps you in the game. Expect your home to be more competitive, but also don’t ever expect a dollar-for-dollar return on your investment.
It’s decision time
So, you’ve done the math and realize it doesn’t make sense to fix up your home. You’re not interested in putting up with repair people. You don’t have the money to put up front. You have decided to sell the home quickly. The sale will be in an as-is state.
But you must be careful here. When you sell your house as is, you still have to reveal everything that’s wrong with it. That includes structural (like cracks in the foundation), plumbing, electrical wiring, drainage—everything. You also have to tell the buyer about any existing title problems or liens…even disagreements with your neighbors over your property boundary.
Unfortunately, when you decide to sell your home as-is, you often end up shutting out the average real estate buyer.
You are more likely to attract home wholesalers and those house flippers we mentioned before. And don’t forget, with so many interested parties, you’ll still need to have multiple showings. Again, be careful, as there can be shady companies who look to take advantage of vulnerable sellers.
If you’re ready to sell your house as-is, your best bet is to work with a reputable property investment firm. Property Sales Group can get you the best deal and do it quickly. Founder Sergei Kucher has helped thousands of homeowners through this process. We help you every step of the way—from offer acceptance, to paperwork, to money transferred into your bank account—so you get a fair deal without stress and hassle in 2 weeks or less.
3 top advantages of an as-is sale (with the right company)
Advantage #1: Save money on realtor fees
This is a biggie. If you are facing financial issues or need to rescue your credit rating, the as-is sale may be the way to go. You can skip the major costs that go with fixing up a home to get it ready for showing.
You pay NO commissions, closing costs, inspection fees, or premiums for warranty insurance policies.
Not sure how much you can save? Use our instant offer calculator. and we’ll give you a full breakdown of what your home is worth and how much money you can save on realtor fees.
Advantage #2: A faster home sale
An as-is sale is the fastest way to sell the home. Scheduling home repairs can be time-consuming and take many weeks (or months) to complete. You can also forget about home inspections and the hassle in qualifying the buyer for a home loan. On average, it can take 35-45 days (or more) to close a house sale. And that’s when nothing goes wrong.
If you sell a house as-is for cash, you can close the deal in as fast as two weeks or less.
Advantage #3: No need to invest any more money into the property
If you’ve inherited a home when a parent or elder relative dies, the new owner often wants to sell the home quickly, so they don’t keep incurring additional costs (they often don’t have). It relieves the heir from the stress. And if there is more than one heir, they can simply split the money.
When you need to close quickly, selling your home for cash means you don’t have to spend money you don’t have.
In summary, if you’re considering selling your house as-is, there’s never a one-size-fits-all solution. Different situations require you to evaluate whether selling as is or investing to fix up your home is right for you. What might be a good option for one home may not be right in your case.
The most important thing to do is do some research and homework before making any decision or accepting any offer. Evaluate the condition of your home. Understand the local market. Do the math—how much money do you need, what is your home worth, how much would repairs cost and how much would realtor fees cost you?
Of course, if you do your homework and conclude that selling as-is is your best option, consider how Property Sales Group can speed up the entire process and help you get a fair deal for your home.