There was a time when selling a property “As Is” automatically conjured up visions of poor plumbing and unsafe electrical wiring, floors in need of replacement, broken windows, and an overall sense of complete disrepair. And, in some cases, this can still be true. But, there are many hidden drivers that cause sellers to include this disclaimer in their listings:
SIX CONSIDERATION FOR SELLERS:
- Seniors need to sell quickly. Health issues, emergency downsizing, or a relocation creates the need to sell sooner than later, leaving less or no time for potential repairs and replacements.
- Repairs are not affordable. Often “As Is” properties are priced below the competition to allow for repair and replacement allowances.
- Minimize the emotional load. Depending on the individual situation, the process of a remodel, changing the flooring, even emptying the home of personal possessions is just too overwhelming.
- The seller is unfamiliar with the property’s history. This is the case with inherited properties. Selling “As Is” serves as a safeguard , effectively eliminating the seller’s liability.
- The seller owns the property outright. With no mortgage and no liens, selling a few thousand dollars under the competition is more attractive based on the large sum they can accrue at closing.
- Convenience over profit. The seller is willing to receive less profit, recognizing that less effort has its own attractive price tag.
As a Top Producing Realtor® I have listed and sold many “As Is” properties. The seller completes a six-page Seller’s Real Property Disclosure Statement. This mandatory document is designed to disclose everything known regarding the condition of the property.
WHAT “AS IS” MEANS TO BUYERS
Coupled with a general inspection conducted by a licensed inspector, the purchase of an “As Is” property no longer has the feared “Hidden Agenda”. Buyers know what they are getting into, and can weigh and measure the value.
Often, when buyers purchase a property, they already envision a new kitchen and bathrooms, interior and exterior paint, and what the landscape could look like. Purchasing a property “As Is” allows for a price reduction that provides the funds to make those much-desired upgrades.
Selling and buying “As Is” isn’t right for everyone. So, I always approach this option carefully, one that may work in the right situation.
