Selling AS-IS: Can I Sell My House If It Needs Repairs
March 1, 2020
If you’ve ever wondered, “how can I sell my house fast,” then odds are you’ve also considered selling your property ”as-is.” If you’re like most greater Philadelphia homeowners, your house was likely built some time prior to 1950. Even if you’ve kept up with regular maintenance, with any home well over 50 years old, a home inspection could uncover a range of expensive repairs—everything from outdated sewer lines and electrical panels to major structural deficiencies caused by a settling foundation. These issues can seriously complicate the sale of your property, especially if you don’t have the cash on hand to tackle these necessary repairs.
One way to avoid the stress of a home inspection is to opt to sell your home “as-is.” When you list your property with an agent “as-is,” you’re signaling to buyers that you won’t be making any repairs. Now, it’s important to understand that the vast majority of buyers are still going to have an inspection completed for informational purposes. Even if the buyer understands that the home is offered in its current condition, if a major issue is uncovered, the seller may try to re-negotiate the sale price or walk away from the transaction altogether. In fact, if the buyer is using conventional financing, the bank will not likely finance the cost of major repairs, which could leave both you and the buyer without a path to move forward with the sale.
A second option is to sell your house to a cash buyer. Cash buyers are likely to be real estate investors who are experienced in buying properties that need significant repairs. These are professional home buyers who are less likely to be deterred by things like a cracked foundation, leaky roof, or old plumbing. Because they are not relying on traditional banks to finance their loans and construction cost, it’s one less hurdle to jump through. Most investors will still order an appraisal and inspection, but it’s most likely only to reaffirm their plans for the property after the purchase is complete.
If you’re worried about taking a lower sale price by selling to an investor, consider the following. The average days on market in the greater Philadelphia region ranges anywhere from 3 to 6 months. Furthermore, once your property is under contract, it will take an additional 30 to 60 days for the average transaction to close. That means you’ll need to continue making mortgage payments and paying utilities until the sale is complete. Additionally, if you sell to an investor, you can typically avoid hiring an agent who take an average of 6% commission on the sale, and the investor may be willing to pay all of the transfer tax and closing costs, which means you’ll walk away with more cash in hand.
Remember, the houses getting top dollar in your neighborhood are likely to have updated roofs, new HVAC systems, and fresh paint. Not to mention professional staging, photography, an open house, and multiple showings. All of this time and expense can add up fast.
If you need to sell your house quickly and want to avoid the headaches and uncertainties of finding a retail buyer, consider selling your house to us. At Fulcrum Home Solutions, we simplify the process of selling your home. You’ll avoid the hassle and cost of listing your home. That means no cleaning up for an open house or for endless showings, and you’ll make no repairs. Best of all, we can close on your timeline. If you need to sell quickly, we can get you to the closing table in as little as 3 weeks. If you need more time, we’re in no hurry.
Call us at 267-435-9999 for no obligation offer today!