What Does It Means to Sell a House As-Is?
Selling a property “as-is” means that it’s sold in its current condition. The buyer gets exactly what they see. No cleaning. No repairs. No price reductions. No seller-paid credits. Sounds great for sellers, right? Of course! That’s because most people who aren’t in the real estate industry don’t even know where to start on repairs. It isn’t easy finding a good contractor. And, it takes a lot of hard work (and luck) to successfully manage and complete a rehab project on time, without going over budget. No wonder it is such a big deal to sell your property as-is!
Want to know a little industry secret?
Would You Want to Deal With This Headache?
Most Sales Are (Technically) As-Is
In California, Almost every real estate sale is technically as-is. Don’t believe me? Check out the Residential Purchase Agreement most California Realtors use:
It’s right there in bold letters that “the Property shall be delivered ‘As-Is’ in its PRESENT physical condition….” So what gives? Why is it such a big deal that a sale is “as-is” if all of them are?
Those Darn Contingencies!
Most agreements include buyer contingencies. Contingencies make the sale conditional and kills the “as-is” nature of the sale. If a buyer includes an inspection contingency (almost all of them do) the buyer has to be satisfied with all aspects of the property through their inspections before closing the sale. Accordingly, buyers usually hire professional home inspectors to find every possible thing wrong with your house.
So, even though the sale is technically “as-is” and you aren’t required to do any repairs, the inspection contingency gives the buyer the ability to walk away from the deal with their deposit and force you to start the whole showing process all over again. No one wants to do that so you’re basically forced back to the bargaining table and compelled to lower the sales price, perform the repairs, or give a seller credit for the repairs. What’s more, you’re in a terrible bargaining position!
Fear Not, There’s a Better Way… Selling Your House As-Is, For Real
No one wants to go through the trouble of hiring contractors to perform repairs, including buyers! That’s why buyers ask YOU to perform the repairs. They want you to take on the headache! When you list your home on the MLS, you attract these types of buyers. If you don’t want the hassle, sell your home to a reputable real estate investor.
Investors can buy your home without any contingencies—that means as-is for real. No price reductions, no repairs, no seller credits, NO B.S.! Unlike MLS buyers, investors can buy houses in any condition because they already have their network of connections. Experienced investors will have a Window Guy, a Roof Guy, an HVAC Guy, and a Guy Guy (to find “Guys” they don’t have). They can leverage their relationships to get better prices and scheduling priority so they can get the same work faster, better, and cheaper than retail buyers. Let the investor take on the headaches so you don’t have to. When sellers work with investors, they get the benefit of:
NO DIY REPAIRS
NO CONTRACTORS
NO REPAIRS AT ALL
NO PRICE REDUCTIONS
NO SELLER-PAID CREDITS
NO HEADACHES