Are you considering selling your North Carolina home? Do you think it will need more repairs than you want to deal with? You may be considering selling our home “as is”, but is this a wise decision?
Under the Standard form 2-T (Offer to Purchase and Contract), paragraph 4 (c), a home is sold in its current condition, unless the buyer and seller agree on repairs. As a seller, should you simply refuse all repairs? Is it smart to advertise your home for sale “as is”? Let’s take a look at the pros and cons of selling your home “as is”.
Pros of an “As Is” Home Sale
Most sellers choose to sell their home “as is” because they cannot afford to make repairs prior to listing or they need to sell it quickly. Selling “as is” provides the fastest way to sell a home, in most cases. Since you won’t be taking any time to make repairs before listing the home, it can go on the market immediately.
Another huge pro to selling your home “as is” comes in the ability to avoid home repairs after the home is under contract. Maybe you cannot afford to make repairs or you don’t have time to deal with the hassle. Repairs can be an inconvenience and selling “as is” may be the answer for you.
Cons of an “As Is” Home Sale
While there are a few solid reasons to sell your home “as is” there are more cons than pros. When you list your home “as is” the buyers may perceive the home negatively. They may assume it has problems and any offers you receive may be lower than expected. It’s likely; you will get a much lower price when listing your home this way.
In addition to a lower price, you may open yourself up to complaints or even litigation. If the buyer purchases your home and you hid a defect and chose not to disclose it, you could be liable. While the buyer of an “as is” home likely knowns there are issues with the home, it’s not an excuse for the seller to be dishonest about the home. If you have any actual knowledge of something not performing correctly and/or something being in need of immediate repair, disclosing it upfront is important.
Whether you choose to sell “as is” or make repairs, it’s important to know the difference between a needed repair and a cosmetic repair. If the air conditioning isn’t working, it may be considered a needed repair, while a kitchen in need of paint to make the cabinets look better is just a cosmetic repair.
It’s best to consider what you would expect to be in working order, if you were buying the home. If the home is really in such bad shape that it needs to be sold “as is” you will likely be attracting an investor and a lower price. Making repairs, both needed and cosmetic, can help you sell the house for a higher price.
While there’s nothing wrong with selling a home “as is” and it certainly makes sense in some situations, it’s important to consider your options. “As is” doesn’t mean non-disclosure. The seller and the real estate agent for the seller still have to disclose any major issues with the home, such as foundation cracks, mold, termite damage or major plumbing/electrical issues, and any other material facts.
Before you decide to sell your home, make sure you speak with a professional real estate agent. Your agent will be able to help you make a wise decision to sell “as is” or to make repairs first.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me 704-650-5707 or firstname.lastname@example.org.