Any tips on selling a house "as is" ?

[mamadogmamacat]

I tend to both buy and live in, sometimes for just a few years, sometimes, like now, for decades, the cheapest house in a a good neighborhood. They tend to appreciate the most. I'm probably the kind of buyer you would want, especially if you are going to use a realtor and pay their fee, you likely do not want a flipper as they will undercut the price too much, since they will want a quick resale.

This is what i would look for if i were considering your house:

1) get all I do mean all the junk out (this would be a real pain for me upon moving to also have to get rid of)

2) get a good cleaning service to thoroughly clean the place

3) fix anything, such as obsolete HVAC or electrical for example, that would make it difficult for someone to get a conventional, or perhaps any, mortgage. you may need a licensed home inspector to tell you what really needs doing, the realtor is likely only guessing

 

[Lsbcal]

UPDATE: We discussed the house pricing with the realtor we have chosen and picked a price that leaves room for negotiation. The house will be sold as is.

There is no way that I am going to get into a renovation job like this. If I get 20k less as a result of not renovating, then that is not a problem for me. Life is too short and I have better things to do. The house will probably be on the market July 15. It is being cleaned up by some people employed by the realtor.

Fingers crossed.

 

[freedomatlast]

Seems like a good candidate for an auction. In this area, they are quite common.

 

[HI Bill]

If I get $20k less as a result of not renovating, then that is not a problem for me. Life is too short and I have better things to do. The house will probably be on the market July 15. It is being cleaned up by some people employed by the realtor.

If you only take a $20K lower price by not remodeling, I'd say you're $30K ahead. It sounded like a complete kitchen redo, new appliance, new paint, new flooring, etc. would run you $30-50K, as a very rough guess, minimum, without knowing the real condition of the house, nor the size. I'm guessing you'll take a much larger loss than that.

That said, if the difference is $20K AFTER repairs/upgrades, I'd say it's worth it, depending on how long it would take, and whether you can find reliable contractors.

 

[travelover]

Yep, there have been studies on this...the Realtor just wants to get your home sold ASAP.

But when selling their own property the Realtor leaves it on the market several months longer than for their clients in order to collect what is usually a 5-figure premium.

When I was selling my house, by coincidence, my realtor also had his house up for sale. He kept telling me to lower the price, but I noticed that he did not lower the price on his own house. Since he had initially priced both houses, I had to believe he was just going for a quick sale on mine and maximum price on his own house.

 

[ivinsfan]

If you only take a $20K lower price by not remodeling, I'd say you're $30K ahead. It sounded like a complete kitchen redo, new appliance, new paint, new flooring, etc. would run you $30-50K, as a very rough guess, minimum, without knowing the real condition of the house, nor the size. I'm guessing you'll take a much larger loss than that.

That said, if the difference is $20K AFTER repairs/upgrades, I'd say it's worth it, depending on how long it would take, and whether you can find reliable contractors.

It might be worth to you, but not necessary to everyone. You never know for sure how much remodeling will cost until it's over and it also delays a sale which could be good or bad.

 

[HI Bill]

It might be worth to you, but not necessary to everyone. You never know for sure how much remodeling will cost until it's over and it also delays a sale which could be good or bad.

Yes, if you're a deci-millionaire, it's not worth any effort! LOL. I'm just trying to get the OP to do a realistic analysis of cost to rehab vs what they're giving up in the sale price. It might be a lot more than $20K. If I were buying that property, I'd offer at most $350 (more like $300K), if the market value for livable houses in the neighborhood is $450K. Flippers have to make money, and cover their costs and have some contingency. I'm guessing most wouldn't touch a $450K house without anticipating making at least $75-100K. I know I wouldn't!

I've been around quite a few real estate professionals (most are multi-millionaires), house flippers, and landlords. Most put forth enough effort to make a house habitable so that it sells quickly at the maximum price. They're in it to make money, not to make the house sell quickly and lose money. They do quick, cheap renovations, and make the house look pretty. I had a pilot friend who used to buy airplanes, have them painted, have the seats reupholstered, and sell them at a nice profit. He never touched the engines or avionics. He taught me that to get top $, you need to make it look good. On the outside. FWIW.

 

[badatmath]

There were 2 identical houses on my street for sale last year. One sold to one of those "offerup" "offerpad" "open door" or such (can't recall which one). Other held out for "profit" got to stay 2 more months and got about 5k more. I think they were both pleased with their path.

 

[Retired Expat]

There is a difference between “as is” do absolute nothing and as is try to get best price. If the place is filled with old stuff and furniture I would clean it out and clean it somewhat. It is one thing to show a house where the plumbing works and another where people can’t see past the moldy shower curtain. Invest in a dumpster at least....

 

[NgineER]

How did you price it?
Most flippers follow the 70% ARV rule. They won’t pay more than 70% of the after repair value (comps for move in ready houses) minus the cost of renovation.
They always want to pay less than that of course.

 

[Lsbcal]

There is a difference between “as is” do absolute nothing and as is try to get best price. If the place is filled with old stuff and furniture I would clean it out and clean it somewhat. It is one thing to show a house where the plumbing works and another where people can’t see past the moldy shower curtain. Invest in a dumpster at least....

Old stuff is being removed. Some painting. A basic cleaning.

 

[ERD50]

Question: Is the "as is" term being used here in just the day-to-day descriptive way, just to say you plan on little improvement (just basic stuff and clean up as mentioned), or is it a specific Real Estate term, that has some specific meaning in the housing market?

IOW, is there a special listing or something for "as is"? Probably depends on State/local laws, but I'm pretty sure the seller has to disclose known issues, and "as is" does not alleviate them of that?

-ERD50

 

[Lsbcal]

Question: Is the "as is" term being used here in just the day-to-day descriptive way, just to say you plan on little improvement (just basic stuff and clean up as mentioned), or is it a specific Real Estate term, that has some specific meaning in the housing market?

IOW, is there a special listing or something for "as is"? Probably depends on State/local laws, but I'm pretty sure the seller has to disclose known issues, and "as is" does not alleviate them of that?

-ERD50

I have been told that since I haven't lived in the house I don't have to disclose much as I don't know much. One must disclose that someone died in the home. But then it is up to the buyer to perform inspections. The buyer is given about 7 days to arrange this.

 

[pb4uski]

Old stuff is being removed. Some painting. A basic cleaning.

In the case of my Mom's recent sale that is exactly what we did... all closets and drawers and cupboards were empty and clean. We had the carpet shamooed. We hired a cleaning crew to wash the floors, clean the cupboards and closets etc. We intended to have the blinds vaccumed and windows washed but didn't have time.

Bottom line... it was clear of clutter and clean.

Comps were hard to compare in that it was easy to find home in the immediate vicinity with the same square footage... in fact, some were even the same floor plan... but the difficulty was that recent sales of even the same floor plan were in various states of updatedness... some were sold worse than Mom's some all renovated and lots of in between.

 

[mountainsoft]

I have been told that since I haven't lived in the house I don't have to disclose much as I don't know much. One must disclose that someone died in the home. But then it is up to the buyer to perform inspections. The buyer is given about 7 days to arrange this.

When I sold my mom's house I had a long disclosure form to fill out and "don't know" was an option for every question. I lived two hours away and hadn't seen mom in over 20 years so "don't know" was my valid answer to 90% of the questions.

The buyer did get an inspection. I didn't get to see the results but there were a couple of small items I fixed before selling. The bigger ones I just said, sorry, take it or leave it. They took it.