Selling Your Home “As Is”
Why do some sellers choose to sell their home “As Is”?
An “as is” real estate sale means that the seller will not pay for any property repairs, but must disclose all known defects to the buyer.
Typically, foreclosures, bank-owned real estate and tax-forced sales of property are sold “As Is”. Also, individual home owners may choose to sell “as is” for a variety of reasons, such as, (a) they don’t want to be inconvenienced or live a long distance from the property, (b) they feel the typical buyer for their home will want to tear it down or remodel to their own liking, (c) they simply can not afford to make the repairs.
“As Is” properties are generally priced below the market because they are in need of a lot of work. Sellers of “as is” houses should be aware that it is a “red flag” warning buyers that the property is distressed. Buyers expect to obtain a bargain price and their offer will generally be lower than the full market value of the property. The seller should note that the buyer will also make their offer contingent upon a satisfactory inspection report.
Conclusion: If selling “As Is”, disclose all known defects; Expect low ball offers; Discount the property to compensate for its condition.