Balancing Profit And Time
The biggest question when it comes to selling a home as-is boils down to: what’s your time worth? If you can afford to spend a year or two preparing a property for sale before appraisal and listing, that’s excellent. You’ll still have one to three months where the property waits for a buyer if you go that route.
If you lived in a city like Detroit when some big industry like automobile manufacturing dried up, or the 2008 recession hit, you likely were wisest to sell for whatever you could get and flee. Those who weren’t so savvy in Detroit about a decade ago when the bottom dropped out were often left with no option than to just…leave.
There are now hundreds, if not thousands, of foreclosed homes going for bottom-dollar prices. Some properties will take tens of thousands of dollars to refurbish, there are some you could get for around $5k that are already basically livable. All of these are “as-is” homes. Many of them are being sold through agencies specializing in such transactions.
If you’re in a situation where an as-is selling the unit strategy is best for your property, it’s important to realize that there are a few best practices here you may want to take into account. Following we’ll briefly go over a couple to help inform your movements.
- Seek People Looking To “Flip” A House
People who flip houses professionally are actually able to make a pretty good living. They strategically seek as-is properties, fix them up, and sell them for more than the cost of the property and refurbishment. If your home is still livable, you just don’t have the time or resources to fix it up, house flippers may see it as a golden opportunity and buy it quickly.
- Check With Home Buying Agencies
Many buying agencies offer “cash” for homes, and very quickly. The process isn’t one that takes place overnight, but it can go relatively quickly if you “jump through the hoops” right. A buying agency has to appraise your home and give you an estimate minus their expenses. This will likely drop what you can get for it down by 25% to 50%, depending on the situation.
Still, especially for those who are in a time-sensitive situation, that could actually represent a greater profit than spending a few months or years getting the property ready for sale personally. If you’ve never looked into options through a home-buying agency, why not check here?
- Be Willing To Accept Low-Ball Prices
If you are looking to sell as-is, then you’re likely fighting the clock. Accordingly, be willing to entertain offers that are 25% to 50%—or even more—under what your property could potentially bring if it were fully refurbished, and not sold “as is”.
- List The Property Wherever You Can
It’s also incredibly important that you list your as-is property in as many different places as possible. One of the best resources here is Craigslist. You can likely get a cash buyer for an as-is property on Craigslist.com, and at a price that may be higher than some home buying agencies. But these things are subjective to a particular situation.
You can also take out classified ads in local newspapers or other similar publications that offer listings. When more people can see your property, you’ve got a higher chance of finding a buyer. Going with a home-buying group is swifter and more secure, but they’ve got expenses to cover, so you might get a better price on an as-is property from a private buyer.
Getting Your As-Is Property Sold
Regardless of whether you go through a home buying group or just move the property yourself, going the as-is route will get your property sold more quickly than traditional means, and you may be able to diminish direct closing costs. However, by definition, as-is properties tend to bring less than they potentially could.
Still, the expense of fixing some properties in terms of time and resources can be so high that you’re better off simply selling the unit at whatever price you can get for it. Know your situation intimately before approaching an as-is sale.
When you’re in the midst of it, look into buying agencies, list wherever possible, be flexible with offers, and court buyers who make it their business to acquire as-is properties and flip them at a profit. Such tactics will expedite and maximize potential in terms of as-is property transactions.