Many homeowners consider selling a house as is to avoid investing more money and time in a house they are about to sell. As with any real estate strategy, there are pros and cons, so you must consider the option carefully. To help, here are answers to frequently asked questions about selling your house as is.
Can I sell my house as is?
Yes, you can sell your house as is on both the traditional real estate market and to companies that buy houses for cash. There are pros and cons in either case, which we will discuss more while answering the following questions.
Will I get less than market value for selling a house as is?
The answer is almost always yes. Whether an investor or homebuyer purchases your home as is, their purchase offer will most likely compensate for any needed repairs. In many cases, they will take the market value of a comparable home in move-in ready condition and subtract the cost to repair or replace any damages. Some homebuyers even deduct their offer to factor in replacing outdated features that may be functional but are unattractive.
Will I make less money selling a house as is?
You may think this is the same question as the previous one, but it’s actually completely different. Getting less than market value does not necessarily mean making less profit. You must factor in the cost of repairs and time invested compared to the difference in market value.
For instance, let’s say the purchase price for selling your house as is will likely be $15,000 less than market value. But repairing or renovating the home up to market value standards would cost $13,000 and take 3 weeks to complete. At 3 weeks, you’re about to pay another month’s mortgage on your home. So, you could very well make the same amount of money selling your house as is than if you paid for renovations.
Will selling a house as is take longer to sell?
Yes and no. Yes, if you are selling your house as is on the traditional real estate market, it will most likely take longer to sell. Average days on market (DOM) vary by region. Here in Florida, the average DOM from listing to closing is 83 days, according to RoofStock. So, an as-is listing will likely take more than 83 days to sell.
Now, for the ‘no’ answer. Selling a house as is can actually be the fastest way to sell a house because companies that buy houses for cash specialize in homes that need TLC. The average sales transaction with cash buyers in 5 to 10 days. That’s right, days, not weeks or months.
Is selling a house as is a good idea?
It really depends on the situation. If you have time and money to spare, then you should probably invest in smart renovations to bring the house up to par. If you have time, but not money, selling a house as is on the traditional market could be your best option. You’ll just have to be a little more patient to find a buyer.
If you don’t have time or money, then selling a house as is to a cash buyer could be a good idea. Not only will you save on repair and renovation costs, but also save 80+ days compared to listing your house on the traditional market.
Selling a House As Is in Florida
If you are thinking about selling your house as is, you need to compare all of your options. Tropic Coast Homes buys houses for cash in Southwest Florida that are in any condition. We’d be happy to give you a free no-obligation offer to help you decide if a time-saving, cash offer is right for you.
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