Key Tips for Selling Houses in As-is Condition
A common dilemma facing real estate sellers in Arizona is whether they should fix their properties before trying to sell. However, there is not a one-size-fits-all answer, and the right decision will depend on a range of considerations. By considering some advice about what these transactions require and what they entail, it is possible to make a well-informed decision that will satisfy all parties involved in a real estate sale in the Phoenix Metro Area.
What Are As-Is Real Estate Sales
An as-is sale has to do with the physical characteristics of an AZ real estate property. Of course, there are situations when the “as-is” tag refers to the title or deed status of the property in question. When a seller offers an as-is transaction, they are saying that they are unwilling to negotiate regarding any upgrades or repairs to the property. That does not mean the sellers have no responsibility when it comes to disclosing material facts about the property, which impacts the livability or value of the real estate.
Examples of some relevant facts that you would need to disclose in a real estate deal include concerns about a home’s foundation or structure, major problems with plumbing, the existence of mold, or other environmental hazards plaguing the property.
The bottom line is that selling property on an as-is basis can offer significant benefits for both parties to the transaction and is often worth exploring.
Are Fixer-Uppers Attractive to Buyers?
Many home buyers are confident that there are deals to be had on properties that may need a bit of work. People looking to purchase properties that need work are usually willing to do relatively light repairs and cosmetic upgrades on these types of homes. Buyers in this category do not typically want properties in need of major repair work or are in bad shape. Of course, some companies specifically look for properties in need of massive overhauls, but this is not usually the focus of individual bargain hunters in the real estate market.
Is It Wise for Owners To Invest In Repairs?
In some cases, making repairs to a home before offering it for sale is a great way to maximize profits by commanding a higher final price. But, this can also be costly to the seller in both money and time. Certain repairs also require a level of expertise that not every DIY homeowner can do themselves, making hiring professionals necessary. Hired professionals rarely come cheap.
The best plan of attack is to do some research on listings in your area. That will help you determine what kind of work would be necessary to bring your property up to its market competition. See how long similar homes have sat on the market before finding a buyer and make an honest assessment of how much money and time will be required to get your house to the point where it is on par with other homes for sale in the area.
Though selling property on an as-is basis in Arizona is not particularly difficult, it is not always easy to decide whether or not to make repairs to a home before listing it. When selling a house that features outdated bathrooms or an aging kitchen, investing in upgrades may well be worth the expense. On the other hand, houses that need massive overhauls in just about every area may be too much for most sellers to tackle.
How to Maximize Offers on As-is Homes
Sellers can do several things to assess how much money they may be able to get for a home that they are selling in an as-is condition. Coming to this calculation will help them determine this type of transaction makes sense for their needs.
Figure Out the After-Repair Home Value
The initial step in determining an accurate value of an as-is home is to examine what the property would likely sell for, after making necessary repairs. Online resources are available to help this calculation, and it is smart to take advantage of them at this stage of the game.
Determine the Cost of Repairs and Upgrades
It is important not to be scared off by the task of making repair estimates. While this may seem daunting at first, keep in mind the price you determine doesn’t need to be entirely precise. Tools exist to help get to an estimate that is accurate enough for your purposes, and this should give you the confidence to proceed.
Assign a Price for the Property As-is
This phase of the process is often the trickiest for potential as-is sellers. It is not always easy to pinpoint how much of a discount buyers will demand in exchange for having to make repairs and upgrades on their own. For homes needing only cosmetic updates or light repair work, it is probably fine to proceed to list the property online. If significant repair work is required, it may make the most sense to contact cash buyers directly.
Assess Whether Repair Expenses are Worthwhile
Now is the phase where it is crucial to assess whether the cost of updating or repairing your property on your own is worth it. Do not forget to factor in expenses, including inspections, escrow fees, appraisal costs, and additional costs. Generally speaking, these fees can come to roughly 8-12% of a home’s ultimate sales price.
Should you decide to undertake repairs on your own after all, be sure to cover the following bases:
- Repair wall and ceiling holes
- Replace carpeting that is stained or damaged
- Ensure appliances and HVAC systems are in working order
- Address leaky plumbing
- Freshen paint on doors and walls
- Make needed roof repairs
- Update light fixtures and ceiling fans
The decision of whether or not an as-is transaction makes sense for your circumstances is not always an obvious one. If you spend the time necessary to consider all relevant factors, you are sure to end up making the choice that suits your needs. If you need help, Doug Hopkins will offer you a fast cash offer on your home across the state of Arizona in cities like Scottsdale, Phoenix, Casa Grande, Peoria, Avondale, Glendale, Chandler, Mesa and Tempe.