If you have an aging or dilapidated house you wish to sell, you can either spend some money to renovate it first or decide to sell it on as-is basis. Selling a house on as-is basis means your potential buyers will know beforehand that the house is defective and you won't be making any repairs to it. Keep these things in mind if you decide to go down this route:
Don't Let It Look Dilapidated
Just because the house has a few defects doesn't mean that it should look dilapidated. Potential buyers may be put off more by the look of the house than its actual defects. Therefore, make sure the house doesn't smell awful, is clean, is not stuffed with stale air and has adequate natural light. If the house has been vacant for some time, you don't want it to look like a vacant house. Instead, clean it up and spruce it up as much as you can before listing it.
Inspect the House Before Listing It
Secondly, inspect the house before putting it on the market. This is necessary even if you don't intend to make any repairs; there are several reasons for the pre-listing inspection. For one, you need to understand the nature of the defects so that you can price the property properly. Secondly, you need to disclose the defects to your buyers (yes, this is necessary even in "as-is" sales), and you can only do this if you understand the defects. Lastly, you will need a rough knowledge of the cost of repairing the defects during the negotiations because some buyers may inflate them with the aim of getting you to lower your price.
Fix the Necessary Issues
You should not try to sell an unlivable house in the name of making an "as-is" sale. At the very least, the house should be structurally sound and safe. In fact, some mortgage lenders do not issue loans to those who want to buy dangerous houses. Therefore, if the roof looks like it could cave in at any time, fix it before listing the property for sale.
Be Upfront About Your Intentions
Lastly, you need to be upfront about your intentions; don't try selling the house on an "as-is" basis under the table. Indeed, as your real estate services provider will tell you, it's best to include the phrase "as-is" in your sales pitch or description of the house. That way potential buyers will know exactly what they are getting into and won't waste your time demanding numerous repairs or complaining about the defects.Share