Although the US real estate market is slowly cooling off, it’s still a great time to sell a house.
If you’ve been thinking about putting your home on the market, now is the perfect time to do so. Still, you may be wondering whether to remodel your house before listing it or if you should just sell it “as-is.”
Let’s dive into that topic and help you make a wise choice with your home. Keep reading!
What Does It Mean to Sell a House “As-Is?”
In basic terms, selling a house “as-is” means you aren’t making any upgrades or repairs with the buyer in mind. You simply list your home in its current state, including any major flaws or defects.
However, it’s important to note that selling a home “as-is” does not free you of your legal responsibilities towards the buyer. Different states have different laws, but you’re generally obligated to give an honest answer to any questions about your home’s condition.
In other words, you can’t sell a home “as-is” in an attempt to hide the presence of lead paint or the fact that your basement floods every spring.
Pros & Cons of Selling an “As-Is” Home
So then, why would someone choose to sell a home “as-is” rather than enlist the help of a home remodeling contractor?
The main reason would be financial distress. Some homeowners fall on hard times and legitimately don’t have the money to fix any issues inside the home. Others need to sell their home quickly and don’t have time to wait for extensive repair work or renovations.
Of course, if your home is relatively new with few defects or flaws, selling it “as-is” might not be the worst idea. However, it’s worth considering some reasons why you shouldn’t add this label to your advertisement.
The biggest problem is that there’s automatically a negative connotation with an “as-is” home. Imagine if you were buying a used car labeled “as-is.” Your mind would immediately wonder what’s wrong with it and (even worse) how much it will cost to fix those issues.
The same is true when you sell a house. Most buyers will look at an “as-is” home and assume there are major problems with the property. At best, you’ll receive a lowball offer, perhaps from a cash-for-houses company or a local house flipper.
At worst, you’ll generate little interest because buyers will assume the house needs too much work. Those two little words will drive away a late percentage of buyers before they ever give your home a chance.
If you do decide to move forward with an “as-is” label, be prepared to work hard to demonstrate that your home is worth the asking price.
Should You Upgrade Your House Before Selling?
It may be a good time to sell a house, but you still have important decisions to make before you list.
In some cases, it might be okay to sell an “as-is” home. But most of the time, you’ll want to remodel your house before you try to sell it.
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