Selling a Home As Is

By Jeanette Joy Fisher

Are you thinking about selling your home quickly "as is?"

If you're selling your home as is, you need to know a few facts.

Because most home buyers prefer homes in tip-top condition, if you sell a home needing repairs, you most likely will not sell for top dollar. This happens when you sell to a rehab investor who will only pay you about 70% of the property value. Real estate investors who specialize in fixer uppers need to make a good profit or they will move on to the next house.

Home sellers often like to sell their home "AS Is." Selling a home as is happens because the home seller doesn't:

know how to fix deferred maintenance problems
have the money needed for repairs or upgrades
have time to fix the house because of moving pressures
lacks desire to work on the home because of personal problems

Home Buyers Preferences

Most buyers make up their minds the minute they walk inside a home. Your curb allure and entry are more important than the bathroom. However, if your home is for a first-time home buyer, these buyers usually have little money set aside to do repairs. Because they haven't much experience fixing up a home, they get turned off by defects in an "as is home." Move up buyers look for luxury and upgrades. These buyers, usually working professionals, don't have time to make repairs and expect perfection.

Exceptions to this occur in desirable areas with older homes. If you see many nearby houses being remodeled--almost torn down--then you might be able to sell your home based on location and property value alone.

Fix Your Home's Defects

Check and see if you have a ReStore near you. The volunteers who manage Habitat for Humanity's thrift store often have a working knowledge of construction and can guide you through the process. I've found the volunteers extremely helpful. Also, home improvement centers have free printouts on how to make repairs and add upgrades. If you go at a time when they're not too busy, they also will help you with the supplies needed and directions.

If your home has deferred maintenance that doesn't detract from the showing, like noisy plumbing problems, you can have these repairs made during escrow and the cost paid from the sale. You can also disclose the problem to the buyers and let them live with it or fix it themselves. Offer a home warranty with your sale so the buyers feel protected in case of future problems.

Remember, buyers choose the home that "feels most like home." Take a look at the type of buyers moving into your neighborhood and create a buyers' "dream home."

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