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Homeowners stand to benefit from selling their homes as-is in many ways. You get to avoid the cost of repairs, and the sale is completed faster. Besides, you don’t get tied down to tedious negotiations with prospective buyers and realtors.

However, selling your home as-is has its tradeoffs, specifically its price. Leave the Key Homebuyers and other cash home buyers know they are buying a property that hasn’t been staged. These buyers accept the current condition of the property warrant-free. This means they won’t give offers close to the market value of similar staged properties.

Determining the Value of Your As-Is Home

One common concern shared by homeowners selling their properties as-is is knowing how much they stand to lose. Unfortunately, you can’t predict exactly how much you will lose by selling your property in its condition, as many variables determine its selling price. The following factors will determine the value of your as-is home.

The Type of Buyer

Your home may attract different types of buyers on the market. You can get offers from individuals looking to live in your home or cash buyer investors. Their goals for purchasing the property vary, and this is reflected in the amount they are willing to spend.

Ideally, most people who want to live in your property may have reservations about buying the home as-is. Their main concern revolves around issues not disclosed that may arise down the line.

Some years ago, upper fixers ruled the market as they bought homes for less, conducted repairs, and sold them at a higher price. However, most homeowners now want homes they can immediately move into. They are looking for a blank canvas that needs painting to suit their style. Because your property is limited to this pool of potential buyers, you’d mostly get offers below your asking price.

The second group of potential buyers are investors, who include house flippers and cash homebuyers. Unlike buyers who want to live in your home, investors focus on their profits and choose properties accordingly.

Investors understand renovations and are always looking for ways of improving property value through repairs and home improvements. They have the knowledge and financial resources to handle such extensive renovations with the aim of selling the property at a profit.

The Condition of Your Property

Properties in good condition obviously attract better prices, regardless of the type of buyer. Homes that require extensive renovations will receive low offers for obvious reasons. On the other hand, you won’t lose much if your home is in an average condition.

The condition of your property directly influences the choice of repairs. If investors want to buy your home, they will most likely deduct the renovation costs to maintain profitability. They may also need to make minor improvements to increase property value.

Endnote

You should know how much you stand to lose by selling your home as-is before listing it. Generally, the loss margin resulting isn’t as wide as most people presume. Surprisingly, homeowners can get up to 95% of their desired value without making repairs. However, this depends on the factors mentioned above. 

Published by: Martin De Juan