We buy houses in Miami Florida. We are your local Miami FL home buyers and we offer cash for houses in Florida. According to the National Association of Realtors, 5.34 million homes went on sale in 2019.
For many of those sellers, putting their house on the market as-is was the best option. Getting a home sold as is can be an easy or challenging endeavor depending on how well you prepare for it.
Here’s a guide to help you understand things you should know before selling your home as is to improve your odds of success.
What Does Selling Your House As Is Mean?
Simply put, selling a house as-is means putting it on the market in its current condition with no plan to make repairs or improvements before selling it. When you sell as-is, the buyer knows that there won’t be any negotiations around credits necessary to fix issues related to the improvements or repairs.
A homeowner may want to list a house as-is for various reasons. Some can’t afford the repairs necessary to sell it at a higher price while others just want the process over with. Some as-is houses are due to foreclosure, and the bank wants to get the property off its books.
Regardless of the reason behind selling your house as-is, you need to understand what such a sale implies. As-is selling means less work and expenditure on your part. In return, it also means you should expect lower priced offers for your home.
The main buyers for as-is houses are real estate investors looking to repair and flip it, iBuyer companies, and individual buyers looking for a fixer-upper.
What Selling Your House As Is Doesn’t Mean
Straight off the bat, you need to know what doesn’t constitute selling your house as-is.
When a buyer makes an offer on an as-is sale, it doesn’t mean they give up their rights. Thus, such a buyer still has the option to cancel the contract after conducting an inspection.
So, why should allowing a buyer the right to cancel the contract after inspection be a plus? Typically, buyers will pay a bit more once they have buttoned down the repair and market value estimates.
When you’re selling as-is, know that the buyer has the right to re-negotiate the price. That’s because an as-is buyer has three options after the 15-day inspection window. They can either close the sale at the agreed-upon price, renegotiate or cancel the contract.
Another critical aspect you must consider is that the law lays out disclosures you must make and explain concerning the property. There are two scenarios in which you may be held liable for not disclosing material facts about the house when you sell it as-is:
- If there’s a defect that’s missing from the list of disclosed flaws you offered
- If the buyer can prove you knew or should have known the fault that wasn’t disclosed.
No matter how you phrase your as-is sale contract, it won’t exempt you from fraud liability. You, therefore, need to do your homework before listing your property as-is.
Red Flags to Look for With a Home Sold As Is
Not every buyer operates in good faith, and you need to prepare yourself for this. Some buyers tend to pull a bait-and-switch on as-is properties.
In this tactic, a potential buyer will offer you a very high price to entice you to sign the contract. Once you put pen to paper, the buyer then begins dragging out the process, seeking extension after extension.
Eventually, the buyer threatens to only close at a significantly lower pierce. After months of waiting for the money and facing boatloads of uncertainty, you’ll end up caving into the massive reduction just so the stress can end.
The antidote here is not to grant repeated time extensions or massive price reductions to a buyer.
Dealing With Cash Buyers When Selling a House as Is
As a rule of thumb, whenever possible, you should gravitate towards cash buyers when selling your house as-is.
A cash buyer typically doesn’t have to meet the financing standards of a lender, which often includes doing repairs. Meeting a lender’s requirements to release funding is one reason why many sales tend to fall through. A cash buyer will bypass this issue, meaning the odds of your transaction not happening are fewer.
Another issue that makes cash buyers more attractive when talking on as-is terms is the closing speed. Banks typically move rather slowly, which means around four to eight weeks for you to close the deal. Cash buyers can take the house off your hands from between a few days to a few weeks.
Cash buyers typically also know what they are looking for and what as-is means. Consequently, it becomes easier to conduct a cash sale as there aren’t many contingencies as most such buyers know what to look for when assessing whether a property makes sense for them.
Price It Right
Pricing a home under normal sale circumstances is tricky, and an as-is sale only ups the stakes. You need to use a pricing strategy that can draw in multiple offers.
How do you do that?
Don’t fall for pricing at the top end of the market. Instead, move to price your property slightly under the market value once you establish a baseline market figure. When you do so, buyers may even see more value once they visit your property.
Remember – pricing slightly under market value means precisely that. When you price it too low, it will make potential buyers wary as they may think something’s wrong with the house.
It’s Possible to Sell Your Home As Is but You Need to Know the Fact First
When you don’t want to fix your house up to sell it, listing it as-is becomes a go-to option. However, getting your home sold as is requires foresight to avoid the pitfalls that come with such sales. Take the time to research all you need to know when listing a house as-is and increase your odds of a successful close.
Florida Cash Home Buyers specializes in giving the best possible offers to homeowners looking to sell their property in Florida. Talk to us today for an honest and fair house sale that looks after your interests.
Sell My House in Miami FL
If you think you need to sell your house in Florida fast, then you may need us. We at Florida Cash Home Buyers are local homebuyers in Miami FL, and we’re helping local homeowners have a quick and hassle-free sale. If your Miami FL house qualifies, we can make you a quick and fair cash offer.