We can think of several reasons why a homeowner would consider selling a home with problems, marketed in “as-is” condition. The most obvious, of course, is that there’s no money to perform the required work. This frequently happens in probate sales where the heirs inherit a home in need of work but lack the funds to put the home in market condition. As well, folks who need to relocate quickly for a job often just want the house off their hands so they can move on with their lives.

Although we understand why someone may need to sell a home as-is, we believe our clients need to know the possible ramifications of doing so. Let’s take a look at two reasons you might want to reconsider your decision to sell your home “as-is,” and what to do if you absolutely must.

1.You’ll have fewer qualified buyers if you sell as-is

When your home is advertised as a fixer, which is what most as-is listings are, you’ll partially drain the pool of buyers who can buy your home. For instance, since FHA-backed mortgages require that certain repairs be made before they’ll ok a loan, your buyer pool won’t contain many first-time buyers.

Then, those who are getting a conventional loan may be getting out of the pool as well since many conventional lenders balk at lending money for a home that needs significant work. Many conventional lenders will insist that certain items, such as a roof in need of replacement, be taken care of.

Then, there’s the fact that most buyers just don’t have the money to repair a home after moving in. Although your low price will attract the tight-budget buyer, the reality of the financial outlays after closing may prevent them from proceeding with a purchase.

Your buyer pool now contains mainly cash buyers and most cash buyers are investors – the most real estate savvy homebuyers. They’re out for a bargain and if you hope to sell your home at all, you may end up taking an offer for far less money than you’d imagined.

2.You won’t make as much as you hope

Today’s homebuyers say they want a home that they can move right into, stick their toothbrush in the holder in the bathroom and enjoy their new digs. So, why would a buyer want your home? When you consider this question, there can be only one answer: A buyer would want your as-is home because it’s cheap.

Depending on the extent of needed repairs, you will have to list your home for less than nearby homes that are in better condition. As mentioned earlier, a low listing price will bring out investors and everyone else looking for a bargain. Be prepared to get beat up over your price, regardless of how low it is, and to sell it for less than you’d hoped.

It’s quite possible that it may be more cost-effective in the long run to make the necessary repairs so that you can list at a higher price. This is something you should speak with your accountant about.

If you must sell as-is

We understand that certain home repairs may be financially out of the question for some sellers and they simply must sell the home in its current condition. Here are 3 tips to help:

Stage the home

Appearance matters more in real estate than most other industries. With attention to increasing the home’s curb appeal and some fresh paint and a good scrubbing inside, even the worst home will look better.

Most buyers will decide whether or not to view your home while shopping online, so paying attention to cosmetics makes for compelling listing photos. Sure, they’ll know that there is something wrong with the home (“as-is” advertises that), but if it looks ok, the perception will be that whatever is wrong with it can’t be that bad. Getting more people to view the home in person is the name of the game when it comes to selling quickly and for more money.

Consider a pre-sale home inspection

Sure, you have a good idea of what’s wrong with the home, but there may be more, or less, than you imagine. A pre-sale home inspection will give you the definitive answers you need and will go a long way in showing potential buyers that you’re earnest in your desire to be completely honest about the home’s condition.

Plus, if you supply the buyer with the inspection results before accepting the offer, you’ll be able to weed out those that will eventually back out, after they have their own home inspection.

Disclose everything

Protect yourself by disclosing all known issues concerning the home and the neighborhood. Yes, it feels as if you’re betraying yourself, but disclosure is important if you want to avoid running afoul of the law and winding up in court. Disclose Every. Last. Thing.

 

Contact Colin for a selling consultation today…817.898.0145 or colin@hhdfw.com

 

In a perfect world, the entire family pitches in every morning to clean last night’s clutter and mess before heading out to work/school. In the real world? Not so much. But when your home is on the market, it’s important that you strive to get as close to that perfect world as possible. A hassle? Oh, yes. Crazy making? Indeed. But we have some tips to help you retain some of your sanity until the house sells.

Start with a clean slate

A deep, deep clean, fresh paint – you’ve no doubt heard it all before. Whether it’s to set the foundation for staging or just to make the home presentable for the market, there’s no getting around the fact that to get what you want for the home, it must be incredibly clean. If you can’t get the job done by yourself, or with help from friends and family, hire someone to do it for you – it’s that important.

The next step in the process of readying the home for the market is, again, a familiar one: depersonalize and declutter. This is the ideal time to pre-pack for the move after the home sells, which, in turn, gives the family less “stuff” to have to pick up before showings.

One of the best places to start is in the children’s room. Pack up some of their toys, especially those with a lot of pieces (LEGO® sets come to mind). You don’t necessarily need to seal those boxes. In fact, if you don’t, you can rotate toys as they tire of the current inventory.

Go through the house with a mission: seek and remove anything you don’t use on a consistent basis. Box it up and move it out.

Keep it clean without losing your mind

The home is clean and it’s free from clutter. Showings will be a piece of cake, right? Not so fast – you still need to live in the home and, if you have a family, they do to. This means you’ll need to keep on top of the ongoing messes that living in a house creates.

Sure, it sounds easier said than done, but if you create a plan, it will be a lot easier than if you don’t. Each family member should have routine tasks that they perform every morning before they head out for the day. This includes making their beds, picking up any messes they made the night before, ensuring dirty laundry is in the proper place, wiping down the counters in the bathroom after their morning showers and loading the dishwasher.

Evening chores may include sorting and putting away mail and other clutter that has accumulated since day’s end.

The big jobs, such as mopping and vacuuming the floors, cleaning sinks and toilets and folding laundry can be assigned to family members on alternating days. If everyone knows what they’re supposed to do, they’re far more likely to buy into the plan.

Last-minute minute showings

So, what happens if you get a request for a showing between those times that you clean? You know, when you are actually using the home to live in? Ah, homeowners are a crafty bunch and we’ve collected some tips from our clients that are not only rather funny but realistic as well.

“With four kids in the house we go through a lot of laundry,” a client tells us. “There’s usually piles of it scattered through the bedrooms and in the laundry room. I just race through the house, grab it and dump it in the washer and dryer where nobody will see it.”

Others have told us they use laundry baskets or boxes to grab clutter and then put it in the trunk of their car. Yes, even dirty dishes.

When a potential buyer is within an hour of being on your doorstep, prioritize your cleaning tasks, because some are more important than others.

• Pick up clutter. If you don’t have time to put it away, take it with you.
• Wash dishes or load them into the dishwasher.
• Empty all the trash receptacles in the home.
• Ensure that bathroom counters are free of toiletries and wipe them down. Hang fresh towels and close the shower curtain and lower the lid on the toilet.
• Vacuum
• Straighten the linens on the beds.
• Straighten the sofa cushions and pillows.
• Open all window coverings to let the sunshine in.
• Turn on all the lights in the home, even in the closets.

 

Should your home look perfect when buyers come calling? Sure it should, but there may be times, such as with last-minute showings, that it won’t be. Don’t stress about it. As long as it is pristinely clean and relatively tidy, you’ll be fine.

Contact Colin for a selling consultation. He can help you sell your home Faster, For More Money & With Less Stress.

817-898-0145 or colin@hhdfw.com