Selling house as is
Hi Terry, I was wondering after seeing quite a few commercials on TV about purchasing houses “As is”. I’m sure we’ve all seen them. No closing, no repairs or cleanups etc. Are these transactions as easy as they claim? I realize that an offer would be less than selling it in a more conventional way, but for various reasons like the examples stated in the commercials; it might make sense for my situation. My main concern is, are the companies legit? Is it a quick process? Any known caveats? This is a second house which is long paid for and is just something I want to get off my plate. Any comments will be greatly appreciated. As always, thank you very much.
Terry Says
That is such an interesting question. I think the idea of selling a home “as is” — a fixer upper — is gaining such attention because of all those HGTV shows! And it can make good sense if you’re willing to take a steep discount in order to avoid the hassles of fixing stuff, throwing stuff out and getting a dumpster for it, etc.
So here are a few things to consider.
1. You might ask a real estate agent to give you a reasonable listing price first. As is. That will give you a starting point. An agent knows the area, the demand for homes, and anything that could boost the asking price (a planned new school nearby, etc). Of course if you sell “as is” to one of those services, you won’t have to pay the real estate commission. But the realtor might also have a buyer.
2. Make sure that you understand the term “as is.” In many cases, it offers the buyer the right to back out after an inspection! That’s obviously not what you want here! Also, before starting the process, get a home inspection so you can make sure a true “as is” buyer has full disclosure about any issues that your state requires. This will cost you a few hundred dollars — but it might protect you just in case an “as is” buyer comes back to your for state disclosure requirements — such as methane, or foundation problems, roofing, plumbing, wiring. Yes, it can all be in terrible shape — which is why you don’t want to spend time fixing it! But DISCLOSURE in the form of a home inspection report could be an important legal protection.
3. Make sure you’re dealing with a reputable company. (There are dozens listed on Google.) Check with the local BBB to see if there are complaints.
You need a clean bill of sale, title transfer, and ALL MONEY IN YOUR BANK ACCOUNT — before giving them access to the property. Check your state for title transfer costs and registration. Then THEY can get the building permits and demo permits. But if the title is still in your name when they start, you could be fined! So get it all done before they get their hands on the property.
Here’s a link to some helpful information.
