Selling Your House As-Is: How Real Estate Investors Can Help You Avoid Costly Repairs
It’s a question that’s stood the test of time and has no convenient “one size fits all answer” – do I spend money on repairs before putting my home on the market or do I keep that cash and accept a smaller sales price for the property?
It’s a complex query and only the homeowner can decide what’s best for him or her based on the answers to several questions. What kind of timeframe are you looking at? What is the current cost of needed materials? How complex are the repairs and/or renovations?
These are all things you need to ask and answer, either by yourself or after consulting with your family. In the end, the answer might be to skip the repairs altogether and turn to a real estate investor for a quick and mutually beneficial sale.
Going the investor route will save you time and can also avoid having to put needed repair costs on credit cards or paying for them via home equity and/or personal loans. This is a great option for many as it can put cash in your pocket in an accelerated time frame and allow for a fresh start at a different location.
If you’re selling your home without first making needed repairs, you’ll be selling it in “as-is” condition, meaning any issues that turn up via an inspection will be handled by the buyer. In this case, that means a real estate investor.
If your home is listed in “as-is” condition, and is marketed as such, most investors, as well as people coming to look at your home, are already going to be aware that potential issues are likely. They’ll be viewing the home with this mindset and with full knowledge of the property’s current condition.
Just be sure to disclose any issues you won’t be taking care of on your own. Real estate investors don’t mind buying distressed properties, but they do expect honesty on the part of the homeowner.
This isn’t to say they won’t buy the home anyway, they very well might. But for a smooth transaction that can benefit both parties, you want to be honest and upfront about the condition of your property.
Investors fully expect and actually seek out these types of situations in the marketplace. It’s not always about the money either; there are many reasons why someone might not want to complete repairs on a property before putting the “For Sale” sign in the front yard.
Some of the more popular reasons for bypassing repair projects include:
No Time. The world moves at a fast pace and sometimes people just don’t have the time to finish everything on their to-do list. No judgment here, sometimes you have to do what you have to do.
No Desire. Sometimes people simply don’t want to work on a fixer-upper, particularly if it was an inheritance or isn’t their primary home. A quick sale is very appealing to people who fall into this category.
No Need. Every now and then a seller will have a buyer lined up before the home is even listed for sale. In this case, it’s a quick transaction and any needed repairs can be taken care of after settlement.
No Money. This has already been discussed but we’re including it in this list anyway. This is the most common reason why someone might not want to do repairs on a property they’re getting ready to sell anyway.
If you’ve decided you’re going to sell your home in “as-is” condition, do your homework, come up with a plan, complete all disclosure forms and then begin searching for a buyer.
Many times, this means an investor. Be prepared for this likelihood from Day One and proceed accordingly.