"I Want to Sell My Home 'As Is!'"

When I answer a call from a would-be seller, or children on behalf of mom and dad, I often hear the statement, “we want to sell the home ‘as is’ without having to do any work on the home!” The exclamation mark at the end of that sentence reflects the tone of voice in their request.

The market is at the highest point of demand since records have been kept. Millennials are 80 million strong and want to cash in on 2.8% interest rates for a 30-year fixed rate mortgage. Can you blame them? Sadly, for these would-be homeowners, inventory is also at record lows since records have been kept. Buyer searching for homes are putting in multiple offers and getting rejected as several buyers are submitting offers on the same home!  Put these two factors together and you have an over-heated real estate market with prices escalating in almost every community.

You get the idea; sellers are king right now. I say right now, because the real estate pendulum is always moving in one direction or another, favoring the seller and then moving to the buyer. Markets of any kind change on a dime. Remember 2008, when we witnessed a similar market favoring the seller and in one instant the pendulum swung way over to the buyer’s advantage in a manner of days.

Back to the title of this article. I wanted to paint a background picture of the market while dealing with the issue of selling ‘as is’. With high demand, and low inventory, buyers are doing all they can to attract favor by the homeowner. In their desire to purchase, many buyers are submitting offers overlooking home inspections, financing contingencies, and allowing sellers to stay in their homes after closing for an extended period to meet the homeowner’s schedules for moving. These would-be homeowners are writing long letters to the sellers about their family and why the seller would want them as a buyer.

Selling a home ‘as is’ can have different meanings and outcomes. Yes, you can sell your home any way you want if all parties understand the ramifications of this type of sale. Typically, when a homeowner wants to sell without doing any repairs such as a bad basement or roof, you as a seller have that right. But just because you can, does not mean it is the right choice! Two houses, identical in location and size, both assessed the same, can sell for vastly different prices. Condition is crucial to the price you will attract when offering your home for sale.

You can say that you are selling as is, but that does not preclude a buyer from having a home inspection with the right to back out of the transaction if significant defects are found by the home inspector. The only instance where you are selling truly ‘as is’ is when the buyer’s offer states that they are eliminating their right to have a home inspection and purchasing in the home’s current condition. We as Realtors always recommend a home inspection as a bad basement can cost up to $40,000 to repair. That is quite a gamble for a first-time buyer who barely has enough for the down payment!

If your home is sold ‘as is’ without a home inspection, and your home needs repair, you will sell quickly as in most cases, but your final purchase price may be diminished by up to 30%! Therefore, plan on a buyer having their home inspection and I recommend fixing any major defects BEFORE putting your home on the market. Buyers will triple the cost of a repair when making an offer just to be on the safe side. In almost every case, making these repairs before putting your home on the market will pay for itself as buyers will offer a premium price if no major repairs are needed.

If you do not have the funds to make a major repair, have 2-3 contractors give you an estimate to fix those problems so that you have a concrete, realistic number that you and your buyer can work with.

In many cases today, if your home is perceived to be in great condition, buyers are more likely to waive their home inspection and then you are truly selling ‘as is’. Again, we as Realtors never recommend a buyer putting in an offer without a home inspection contingency, but many are doing just that if they feel the home was properly maintained. That is the market we are in.

In summary, plan on any significant defect becoming the dominant issue when in negotiation. Eliminating that defect before selling is always the best way to go. Get estimates if you do not have the funds to make that repair. Have your home neat and clean and yes, you can sell ‘as is’ without replacing flooring and carpeting or updating your kitchen and bath. Make sure your home is clean and neat, and preferably some furniture to give the buyer a better idea of layout. Plan on a home inspection and do not panic. Buyers today are overlooking many repairs due to high competition but will always focus on the big-ticket fixes. 

Will this market last? Who knows! Whenever I try to predict the market, just like the stock market, it goes just the opposite way. That is because we are human beings and work on emotion in most cases rather than reality. Fear can overtake us when changes occur, and we can over-react causing monumental market change. World events are another wild card out of our control. Therefore, enjoy the market today but make your plans looking ahead at the future. Especially when we know our lives can be improved by, like the title of my first book, “Moving in the Right Direction”!

Bruce Nemovitz is a Senior Real Estate Specialist, as well as Certified Senior Advisor. Bruce has sold residential homes in the four county Milwaukee-Metro areas for over 40 years. He has published a book called “Moving in the Right Direction”, A Senior’s Guide to Moving and Downsizing.Bruce has written a second book for the children of seniors, “Guiding Our Parents in the Right Direction”, Practical Advice about Seniors Moving from the Home They Love. These books are now available at https://www.brucesteam.com/bruces-books/. Past articles about moving and downsizing and other important information can be found at BrucesTeam.com. Bruce and his wife Jeanne hold seminars about selling your home of many years. Check their website for times and dates.Bruce received the 2010 “Realtor of the Year” from the 3,800 membership of the GMAR (Greater Milwaukee Association of Realtors). Bruce is a featured speaker at several senior communities in the Milwaukee-Metro area. His discussions center on the challenge of moving from a long time home into a senior apartment or community. He has been listed in Milwaukee Magazine’s 5-Star Agents list for the last three years in a row. As such, he’s one of only a handful of Realtors who are continually included in the top 7% in client satisfaction in the Milwaukee Metro area. He’s rated A+ by the Better Business Bureau, and was a finalist for Concordia College’s Ethical Business Leadership Award.He works with his wife Jeanne at Realty Executives Integrity.