The Advantages of Selling a House “As Is”
Selling your house from putting out the word to closing is a big deal. But what happens if there are big issues along the way? Let’s say you’ve got a tenant who’s not paying rent, interiors full of features popular decades ago, but not today, or damage that will be expensive and time-consuming to fix? Whatever the issue, from environmental to economic, the solution to selling a house with potential complications, from damage to other difficulties, can be to sell your house “as is.”
The typical homebuyer won’t want to buy as is. They want to move in ASAP. They want a solution, not a problem. Real estate investors, when a house comes with complications, can be your ideal choice. Since they typically do extensive renovations, anyway, and are ready to manage various problems, real estate investors are likely to step up when others may walk away. While real estate investors do deals for a wide range of houses, they may have connections to handle concerns that otherwise can derail a deal. Here’s a primer on when, whether and why selling “as is” may be the right way to go for a house facing certain issues that make it harder to sell.
What is “As Is” Houses
First of all, you need to be aware of what “as is” means and who buys “as is.” An “as is” deal means the buyer is taking a house that can have a wide range of problems. In typical sales, you must attest to certain things, indicating an absence of these issues. If the sale is “as is,” the buyer accepts that problems may exist and it is their responsibility to solve them, not yours. For properties with particular problems, “as is” can be the best, fastest and most efficient way to sell.
Who Buys “As Is” Houses
Typical homebuyers do not want an “as is” deal. They take out a mortgage and want to buy a house that, typically, needs little work. They may buy a fixer upper, but even then, that typically means some work in the kitchen or siding. When problem get bigger, these offers become fewer. Real estate investors, however, often are eager to buy “as is.” They plan on renovating, often get work at a discount and have a system in place to do the work. So if the idea of work worries residential buyers, real estate investors can be attracted.
No mortgage, no problem – If a house is damaged, a bank may determine it is unmortgageable. A fire, a flood or other problem, that can make it difficult or impossible to get a mortgage. And that can make it difficult or impossible to sell to residential buyers. For a real estate investor, who funds deals with their own money, that’s not a problem. Since they’re not going to a bank, they simply have to want to do the deal. This saves time and eliminates uncertainty.
Damaged goods – Some houses have been through fires, floods or other events that damage them. When you sell as is, the buyer accepts that as part of the deal. In fact, for a real estate investor, that’s not even negative. It can be a plus. Since the investor is ready to renovate, they’re ready to do the work, which lets them increase value and, after they invest, can boost profit in the end.
Environmental expectations – When a new resident buys a house, they’re thinking about moving in. The last thing they want to do is get involved in environmental remediation. Real estate investors typically have experience and contacts to handle remediation. Since they’re not moving in, the delay is not a big deal. Others will walk away from these problems. For a real estate investor, with expertise in solving these problems, this is part of the process.
Non-paying tenants – Let’s say you’ve been renting your house to a tenant who isn’t paying. Some homes are burdened with a tenant who owes rent. This can be a huge liability, since the new owner must deal with the non-rent-paying tenant. Nobody wants to buy a hassle. When you sell as is, it’s up to the buyer to manage. Real estate investors, often, have dealt with this situation and are equipped to handle it again.
No need to clean – If your house is filled with junk, you may have to declutter and clean for a traditional sale. You can’t walk people through a messy home. Let’s say hoarding was going on; cleaning can be a huge chore. When you sell as is, you don’t need to empty and clean. That saves money and hassle. Real estate investors, once again, are equipped to empty houses.
Value added – to the typical tenant, trouble with a house is just that. Who wants to solve problems? But to a real estate investor, what you perceive as a problem can be an opportunity. That lets them increase the value by investing, so your problems can be a positive, as a source of profit after work is done.
Better pricing – If you have a house with big problems, you can expect low offers, if any. A real estate investor, however, may be able to give you more than you’ll get elsewhere. Real estate investors often do a lot of work, letting them get discounts, saving money when they renovate. And they can pay not just based on the house’s value when they buy it, but the underlying, hidden value and amount they anticipate a sale after work is done. That lets you get some of the benefit of the work they plan to do.
Handsome Homebuyer – While “as is” deals bring certain benefits, you want to do an “as is” deal with someone experienced in this type of sale. With that in mind, if you are thinking of selling “as is” or simply selling, you may want to consider Handsome Homebuyer. We do more than 100 deals a year, and we have a lot of experience overcoming obstacles. If you have a problem, we may be the solution.