Selling a home by owner can be a daunting task. Selling a home in need of repairs is even more challenging, but there are several options available. With proper preparations, it is possible to get a fair price, in most situations. There are 3 main options: work with a Realtor experienced in as-is sales, sell the home for cash, or sell the home as “for sale by owner (FSBO)”.
Why Sell As-Is
An owner can have various reasons to want to sell without fixing everything.
- Cost of repairs too high
- The time needed for repairs
- Need to sell and move quickly
Prior to making any rash decisions, take these steps to ensure selling the house for maximum value.
- Have a preliminary inspection and appraisal
- Decide if anything can be fixed within the time and budget constraints
- Small projects like painting walls neutral colors
- One large project like replacing the furnace
- Clean the house thoroughly inside and out
- Deep clean, including carpets
- Organize and empty drawers, closets, and cupboards
- Clear the yard of debris
- Mow, trim, and weed
- Sweep and clean pathways
- Stage the house
Work With a Realtor
The easiest option is to work with a realtor experience with as-is sales. Realtors do take a commission, but it is in their best interest to sell the house for top dollar. This also may be the best option for an as-is short sale situation, where the amount owed on the mortgage is more than the home is worth.
- Can advise which projects give the best return on investment.
- Knows how to accent the positives- location, lot size.
- Will handle all arrangements
- Open houses
- Arranging for closing procedures
- All legal aspects
- It does take 3% commission, as will the buyer’s agent.
- Can handle the sale even if the owner needs to move before the house is sold
A cash sale is when a buyer makes a cash offer on the house directly to a homeowner. Even if the owner solicits offers, they are not obligated to take it. It is offered by many companies that focus on real estate investing. This method has become so popular that the real estate app Zillow now offers cash sales in some areas.
It does not require inspection. Will purchase house in any condition. The transaction usually occurs within two weeks of offer acceptance. Quickest, the easiest method to sell a house as-is. It cannot occur with a short sale. Offers may be lower than the actual home value. Most we buy houses companies throughout Atlanta, GA are legitimate like sell my home fast Atlanta but beware of scammers. Ideal for someone that wants to sell by owner with low hassle Ideal for a time crunch.
For Sale by Owner (FSBO)
The third option is For Sale by Owner (FSBO). The homeowner handles all aspects of the sale. This is not the best option for someone that needs to sell quickly. The homeowner is responsible for the following:
- Pricing the house accurately.
- Getting an inspection to help disclose issues.
- Preparing and staging the house.
- Marketing the house.
- Conducts showings and open houses.
- Handles legal aspects of closing
- Arranges for title exchange
Although the term as-is implies that a significant amount of work is needed to make the house livable, it does not mean that the house should be under priced. Careful research is needed to price the house according to the market and the work that needs to be done. Simple cosmetic issues such as old carpet or wallpaper may not lower the price as much as something as extreme as a leaky roof or malfunctioning plumbing. Some issues such as mold must be addressed or disclosed before the sale is complete.