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Buying or Selling a Home As-Is

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We all know (or can easily figure out) the concept of buying or something “as-is.” I’m about to try selling my bike as-is for $25 — it works well, but needs some tuning up, the tires are flat and I don’t have a bike pump.

Maybe you’ve seen someone with a “For Sale” sign in the front windshield of their car, parked on the side of the road. There very well might be nothing wrong with it, but the seller thinks they can get a better deal than taking it to a used car dealership by taking matters into their own hands.

When we buy or sell something as-is, that “something” is to be sold and purchased in the state that it’s currently in. But for a massive investment and asset like a house, how does this process work?

Selling a House As-Is

The process of selling as-is is pretty simple. The only real differences from selling the traditional route are:

  • Your listing includes “as-is”
  • If you lived at this house, you have to disclose any/all known issues
    • If you inherited the house, it was a rental you hadn’t lived in, or if it was a bank-owned property, your disclosure requirements are waived.
  • The house doesn’t have to be empty when you move out

With all that in mind, here are some pros and cons to selling as-is:

Pros

You don’t have to clean your house. This is perhaps the biggest benefit to selling as-is. Homeowners with tons of stuff don’t have to clean through and sort everything — they can literally leave their house and its belongings for the next person. This is also beneficial for homeowners who are grieving the loss of a loved one — going through everything can be extremely painful.

You don’t have to fix things up. If that roof has needed replacing for several years but you’ve just never had the time or funds to do so, you don’t have to. Even minor cosmetic issues don’t have to be spruced up.

You might sell faster. Those who invest in real estate are often looking for motivated sellers. There’s a good chance you can get connected with a buyer who’s ready to close in 30 days, with no inspection necessary (this is especially true if you sell with RealtyHive!).

Cons

Your house is almost certainly going to sell for less. All the as-is benefits come with a price. When passing the torch of a rundown house to the next buyer, they won’t go for the property if they can’t afford both the house and the necessary renovations.

Buying a House As-Is

The most important thing to note with buying a house as-is involves inspections and offers. You can still put a home inspection contingency in your offer, but know that the sellers are not obligated to fix anything. This contingency solely protects you from having to purchase the house if, after the inspection, you change your mind about buying. 

For example, you might find out in a house you’re interested in that there’s major foundational damage and termites. You realize the costs are way too high and fixing things would take longer than you’d like. You’ll lose a few hundred bucks on the house inspection, but it’s better than being locked into a home purchase that you later regret.

Pros

You can get a massive deal. Undoubtedly, this is why people buy homes as-is. You could save tens of thousands (and then some) by going this route.

You might love the appeal of a fixer upper. Looking for a major project or love the idea of a house with potential? Buying a house as-is provides that exact opportunity.

You could close faster. With traditional home sales, you might submit one of 20 offers. It could be a few months at least, between submitting an offer and the closing date. Buying as-is can drastically speed up the process.

Cons

You will almost certainly have to deal with lots of issues. Hoarding houses, structural damage — the gamut of home issues runs from moderate to nightmarish when buying as-is. While you could stumble upon an incredible deal with very little to fix, the chances are slim. 

For this reason, including home inspections in an offer letter is necessary, unless you’re completely confident in taking on anything that comes your way. At the very least, consider taking a friend who’s got an eye for home improvement with you to walk by or through the property. 

You might pay more than you bargain (or budget) for. A low price is rarely what you’ll end up paying to make a place liveable. Buying as-is might seem like a steal, but you definitely run the risk of unforeseen costs.

No matter if you’re looking to buy or sell as-is, RealtyHive is the place to go! We list properties from highly motivated sellers and connect them with highly interested buyers — think of us as an as-is online dating service. Fall in love with a new property or our selling process today.

Why “We Buy Houses for Cash” Is a Bad Idea

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Who hasn’t seen one of those “We Buy Houses for Cash” billboards or commercials? Selling your house for cash might sound enticing — especially if you’re worried about selling — but as Admiral Akbar says…

via GIPHY

Here are just some of the reasons you want to avoid the “We Buy Houses for Cash” schemes at all costs.

They’re not what they sound like.

As appealing as it might seem to get a bunch of upfront cash for your house, “We Buy Houses for Cash” doesn’t work like that. Due to anti-money laundering rules, no one will legally buy a house for cash. If you’re expecting a mob movie-style suitcase full of hundreds, you’ll be out of luck.

Some people are encouraged by the WBHFC format for its non-traced transaction, but more than anything, most people going this route are in it for a fast close. Unfortunately, this speed comes at a price.

They target people in desperate situations.

The sense of urgency in a WBHFC scheme is intentional. It’s designed for people in dire financial situations — such as struggling to afford their mortgage or needing to quickly sell their house.

Being in this kind of situation is super scary, but WBHFC is not the answer. Fortunately, there are much better options out there (we’ll get to that in just a minute).

They can be surprisingly picky about what they’ll buy.

While many WBHFC schemes pride themselves on buying a house “as-is,” this isn’t always the case. Most are actually very picky about what they’ll take. Houses might not qualify, or WBHFC companies will make it seem like they’re doing the seller a huge favor and significantly lower the buying price.

Additionally, commercial properties or land usually don’t qualify. 

They buy houses for much less than they’re worth.

If it seems too good to be true, it probably is. Quick closing, buying “ugly houses” — these WBHFC “benefits” come at a price. More than anything, sellers won’t get nearly as much as their home as valued. WBHFC often buys for 30 to 50 percent less than a home’s market value.

While some might be willing to cut their losses, sell their house for cash, and lose money for the sake of time, there are much better alternatives. A time-limited event through RealtyHive is best for selling, and here’s why:

In the real estate world, “We Buy Houses For Cash” are part of the dark side. Choose the Force, and listen to Admiral Akbar — he’d tell you to go for RealtyHive for a safer and advantageous home sale.