You have a house to sell. You are certain the house would sell for more if it was emptied, de-cluttered, painted, freshly landscaped or remodeled. Does it make financial sense to do any or all of this? How much more would the home sell for? How long will it take to do the work and get the home ready to go on the market?
Could it ever make sense to sell a home in its “as-is” condition?
What does it even mean to sell as-is?
Lots of questions.
According to the California Association of Realtors, “As-Is” is defined in the Purchase Contract:
- Property, including pool and landscaping, to be maintained in substantially the same condition as when the buyer submitted their offer
-
All debris and personal property not included in the sale shall be removed
Also, the Purchase Contract specifically states:
- Property shall be delivered “As-Is” in it’s PRESENT physical condition
What does it mean to the buyer of a home being advertised as being sold as-is?
Does it make sense for a listing agent or seller to mention in the marketing materials that the home is being sold “As-Is?” Seems redundant, right?
Yup, even more questions…
Reasons why it may make sense to sell as-is:
Doesn’t make financial sense. If the as-is value exceeds the value of the home after the remodel, less the cost of improvements
Don’t know what improvements would provide the greatest return on investment
Don’t have the money to remodel
Don’t have the time to oversee a remodel
Don’t know which contractor(s) to hire to do the work
You need a faster sale and don’t have the time the remodel process will take
Don’t want to take the risk of more work being uncovered that is needed
Don’t want to take the risk of the real estate market weakening during the remodel period
Don’t live nearby
Don’t want to live through remodel process if still living at the house
Want a few more questions?
Can a buyer still ask for repairs with the home being sold as-is?
Can a buyer still ask for credits for work that needs to be done?
Everyone’s situation and needs are different. Hopefully you have a better understanding of the meaning of an “as-is” sale and some of the factors to consider when making the decision.
Of course, if you find yourself in this situation of deciding to sell a home as-is or remodeled, I’m happy to discuss your particular situation and how the factors to consider specifically relate to you. I have a process that guarantees (yes, guarantee!!) you’ll know the as-is value before deciding if a remodel makes sense.