As-Is House Buyers: What You Need to Know
Owning your own home has long been seen as an essential part of the American dream. The trouble is that it comes with a lot of responsibilities, not to mention costly payments each month. A recent survey shows that 1 in 5 Americans are priotizing paying their rent or mortgage over getting enough to eat.
If your home is in poor condition and needs major repairs, the thought of trying to sell it on the open market may fill you with dread. Working with as-is house buyers could be the solution.
What do as-is house buyers do exactly? What are the pros and cons of going this route? Read on to find out.
What Are As-Is House Buyers?
As-is house buyers will buy your house for cash in its current condition.
They will come and inspect your home, usually in person but sometimes via photos or a video call. They’ll ask you a lot of information about the condition of the property and when it was last repaired or maintained. They’ll use this information along with their research about the area to make you a cash offer for your property.
If you’re happy with the offer, you can accept it. If not, simply walk away. There’s zero obligation and you should never have to pay for the pre-offer inspection.
There’s no need to make any repairs to the house. You usually don’t even need to clean it. Just agree on a move-out date, clear out your stuff, and get on with your life.
Who Can Benefit From an As-Is House Sale?
Choosing to sell your house as-is for cash is a big decision. But sometimes there comes a time in people’s lives when they need the cash that is tied up in their home more than the home itself.
For example, you may be going through a divorce. Both of you decide you want to cash out your house and move on with your lives. Using as-is house buyers allows you to take your share and walk away.
You may have inherited a home that is dilapidated. With time and money, it could be a great home for someone. But you’re not in a position to invest either.
In this case, using a ‘we buy houses as-is’ company could be a great option. They will free you from all responsibilities attached to owning the house and you get to spend the cash however you want.
Are you struggling to make your mortgage payments each month? Your lender may start foreclosure proceedings against you soon.
If you sell your house as-is for cash you may be able to pay off your mortgage and find another home with a more affordable rent.
But what if the value of your as-is house is lower than the outstanding mortgage balance? Once you get an offer, talk to your lender and explain the situation.
In some cases, they may prefer a short sale to foreclosure. This means that the house sells for less than the value of the mortgage. They may agree to the sale and free you from the obligation of the mortgage.
Pros of an As-Is House Sale
Selling your house as-is means you don’t have to do any repairs. But there are other benefits that can make it an intriguing option.
Typically it takes 30 to 45 days to close on a house sale. And of course, first, you have to put the property on the market. Then you need to have it ready for showings and finally negotiate before agreeing on the sale price.
If you just don’t have time for that, as-is house buyers could complete much faster. If you work with a company like emperorhousebuyers.com you could close on the sale of your home in as little as seven days.
No Stressful Selling Process
Listing and showing your home can be a very stressful process. It can also be expensive, with realtor fees and legal expenses. Finally, if you’re house is not in good condition, you’re likely to have some intense negotiations agreeing on a sale price with the buyer.
Often you will then find yourself stuck in a chain. You won’t be able to sell your home until the people further up the chain have sold theirs. Plus, there is always a chance that your buyer can’t arrange a mortgage and the deal will fall through.
You can say goodbye to all these worries when you sell your home as-is for cash.
Cons of an As-Is House Sale
The main downside of an as-is house sale is that the sale price will be lower than on the open market.
Companies are interested in buying a house as-is so that they can renovate it and sell it for a profit. To achieve their goals, they will offer you a fair, but lower price than you would get on the open market. The flip side is that you have no fees to pay and you don’t need to carry out the renovations yourself.
Never agree to an as-is house sale if you’re not happy with their valuation.
Should You Sell to As-Is House Buyers?
Selling to as-is house buyers is a major step, but if you need cash fast it could be a great option.
You won’t need to make any repairs and there’s no need to battle your way through the selling process. You’ll get cash in your pocket within days, rather than weeks.
If you’ve enjoyed these hints and tips, we’ve got plenty more for you. Head over to our Real Estate Talk section today!