There’s a lot of information online about preparing your home for the market, but what if you’re looking to sell it in its current condition?
It is possible to sell your home ‘as-is’ for a healthy sum, but this will depend on the home itself. If you’re on the fence, let’s take a look at the pros and cons of selling your home without making any changes.
What laws apply to selling as-is?
While any seller can choose to sell as-is if they wish to, this does not alleviate the responsibility to give the buyer a full and accurate picture of the property’s appearance and condition.
The description of a property for sale is governed by the Consumer Protection Against Unfair Trading Regulations. If the seller fails to disclose any issues with the property which could legitimately impact the buyer’s decision, they may be subject to prosecution.
What information needs to be disclosed?
To secure a buyer, your property will need to be marketed with all its best features on display, but it’s important to be open and honest with buyers. You will need to provide details about any known issues the property has from the offset, otherwise, you could run into issues later. You may need to provide certain details such as:
- Crime levels in the area
- Other concerns e.g. if the property is situated beneath a flight path
- Underlying structural issues
- Noisy neighbours (E.g., a school or a pub)
- Japanese Knotweed
If you’re unsure about a certain issue and whether or not it needs disclosing, your agent can guide you on what’s relevant and what isn’t.
Related: Common difficult questions from buyers and how to answer them
Pros of selling a property as-is
For some people, selling as-is is a great option, especially for those who have inherited a property or don’t have the time and money to carry out repairs and renovations. There are several pros to selling as-is under the right circumstances.
Saves time
Improving a home to ready it for the market requires a substantial amount of time and money. Traditional home sales can be lengthy, with the need to complete repairs and upgrades before listing, so if you’re struggling with resources, it might make sense to sell the house as-is.
Lowers costs
Undertaking major repairs or renovations can be expensive. Selling your home as-is allows you to avoid these upfront costs and potentially sell your property at a competitive price. This is particularly appealing for homeowners who may not have the financial resources for extensive improvements.
Attracts investors
‘Fixer-upper’ homes often attract investors looking for opportunities to add value. Investors may be more willing to negotiate a deal quickly, providing a faster route to closing the sale.
Offers a more transparent transaction
Selling your home as-is sets clear expectations for potential buyers. They understand that the property may require work, and this transparency can lead to more straightforward negotiations.
Cons of selling a property as-is
There are several drawbacks to selling a home as-is, which is why many people choose to make repairs and improve their homes before placing it on the market.
Reduced market appeal
Homes sold as-is may not appeal to a broader market, as many buyers prefer move-in-ready homes. This could limit your pool of potential buyers and extend the time your property spends on the market.
Lower sale price
Buyers are likely to factor in the cost of repairs when considering an as-is property. As a result, you may need to lower your asking price to attract buyers, potentially leading to a reduced overall profit.
Find out your home’s current value now
Limited financing options
Some buyers rely on mortgage financing that requires the property to meet certain standards. An as-is home may not qualify for conventional loans, limiting your buyer pool to those with cash or specialised financing.
Negotiation challenges
Buyers of as-is homes often expect a lower price to compensate for the potential repairs. Negotiations can be more challenging, as both parties may need to find a middle ground that satisfies their respective needs.
For more selling advice, contact your local Parkers branch today
