Many property sellers in California have been faced with deciding whether or not they will fix up a property before attempting to sell it. The answer to this question will be different for each seller and depend upon a variety of factors.
What Is An As-Is Home Sale
An as-is home sale refers to the physical aspects of a home in most cases. However, there are rare instances when the as-is portion of a property sale agreement will refer to the deed or title of the home being sold. When you sell a home ‘as-is,’ you are declaring there will be no negotiations pertaining to repairs or updates to the property by the owner. It is important to understand that selling a home as-is does not mean there is no responsibility on the part of the seller to disclose facts concerning the home that affect the value and ability of a potential buyer to live in the house.
Examples of facts about a home that must be disclosed are problems with the foundation, issues with the structure of the home, major plumbing problems, the presence of mold, and other environmental threats present in or around the home.
Selling a home as-is in California provides tangible benefits for both the seller and buyer of a property. It is the best alternative for both parties in many situations.
Do Homebuyers Want Fixer-Uppers
There are buyers in the market who feel there are deals to be found when buying homes in need of work. These homebuyers are looking to perform light cosmetic work on the home they purchase. They are not looking to perform major repairs on a home in most cases. There are companies that specialize in purchasing homes with major issues but this does not usually fit the profile of individual buyers.
Should The Owner Make Repairs To The Property
There are times when fixing a home before putting it up for sale will be the most profitable alternative. However, this option will sometimes require a great investment in time and money. You may also need a bit of experience to pull off this option so make sure you are able to meet the challenges before choosing to do so.
You may be able to check out the homes listed for sale in your area to give you a hint of what would need to be done to your home to receive the full retail value of the house. Look at the condition of the homes on the market and determine how long the owner has waited for a buyer. Also, compute the time and cost necessary to improve your home to the point it is comparable to competing homes in the market.
While it is not a complicated process to sell a home as-is in California, it can be a little tricky to determine if it is worth it to repair a home before selling. If you are selling a home that has an outdated kitchen or bathroom and only needs work in this single area, it can be worth the time and effort to update the space yourself. However, a home that needs upgrades across the board may present too large of an undertaking for many homeowners.
Steps To Receive Best Possible Offers For Homes Sold As-Is
There are a number of tips at the disposal of the seller of a home to determine the price they should command when selling a home in as-is condition.
Determine The After Repair Value Of The Home
The first step in the process of valuing your as-is property is to get an idea of what the home will be worth if you took the time to perform the needed repairs. You can use a website online that values properties to find this number quickly.
Estimate what updates and repairs will cost
Do not be intimidated regarding the process of estimating repairs. The number you come up with does not need to be exact. There are also guides both online and off that will help you estimate the cost of individual repairs.
Determine A Fair Price For The Home In As-Is Condition
This is perhaps the most difficult part of the process. It can be an inexact science to estimate the discount a buyer should expect for repairing a home themselves. If light repairs or updates are needed, you can list the home for sale online. If major repairs need to be done to the home, time and money may be saved by contacting a cash home buyer in California.
A point to remember is that a realtor will also turn to a cash home buyer if they are selling a home that needs extensive repairs. You can save the six percent commission that would be owed to the realtor by going straight to the cash home buyer yourself.
Determine If The Cost To Make Repairs Is Worth It
Now it is time to determine if the hassle it would be to repair or update the home yourself is worth it. You should remember to add costs like escrow fees, buyer concessions, inspections and appraisal costs, and any other expenses relating to the sale of the home.
In most areas, these added fees will account for about 8 to 12 percent of the home’s final sales price.
If you decide to provide repairs yourself, make sure the following issues are properly addressed:
- Fix any holes in the walls or ceilings.
- Make sure HVAC system and appliances are in working condition.
- Replace worn or damaged carpets.
- Fix leaking faucets.
- Fix damaged windows.
- Paint walls and doors where needed.
- Make roof repairs.
- Replace outdated ceiling fans and light fixtures.
It is not always simple to determine if an as-is property sale is in your best interest. However, if you take a moment to consider all pertinent issues, you will come up with the best decision to fit your particular situation.