In preparing to sell a piece of real estate, it is common to do small fixes or to stage the house so it is more appealing to buyers. However, particularly in this “sellers market,” many may wonder if preparing their house for sale is really worth the hassle. Selling a house as-is can help alleviate some of the tasks and upfront expenses typically associated with selling property. However, there may also be some downsides in terms of the attractiveness of the property to potential buyers.
The specifics of this type of transaction
When a house is put on the market as-is, this means it is to be sold in its current condition. Even if the prospective buyer finds repairs to be made in the inspection, the as-is listing indicates that the seller is not going to make any repairs as part of an offer. However, there are some limitations to this, as sellers must still meet disclosure standards set out by state and federal law.
Do homes sold as-is sell for less?
One common criticism of selling the home as-is is that the pool of buyers for such homes may be smaller. In addition, a house that has not been staged or updated may be worth less to a potential buyer. Experts say that properties that require some work may sell between 15 to 20% below market value. However, in this competitive real estate market, sellers may still be able to net a significant profit without doing much in the way of repairs or staging. As such, selling a house as-is has become much more popular in recent months.
There are some complexities associated with buying a house as-is. For example, mortgage companies and lenders may require certain repairs to be made prior to agreeing to finance the home. Buyers are also understandably a bit more skeptical when going into an as-is arrangement, and they may have more questions for their real estate lawyer. As such, both sides of a transaction such as this should be sure to work with an experienced and trusted Massachusetts real estate attorney.