Selling a home has never been something people think of as “easy.” In most cases, it takes several weeks (or months) of planning, preparing, and showing the home.
For this reason, some homeowners consider the idea of selling a home as-is. That is, they think about selling the home without making any repairs.
Obviously, this means lowering your asking price to make a home in disrepair more appealing to potential buyers. But did you know there are some home issues that can make your home ineligible for some lenders?
If you’re planning on selling a home in bad condition, read this first.
Why Sell a Home As-Is?
First, let’s take a look at some benefits of selling a home in bad condition without making repairs. For some homeowners, selling their house as soon as possible is of the utmost importance. In this case, foregoing in-depth and time-consuming repairs is their only option.
Conversely, some sellers may not have the financial means to invest in updates and repairs. They may not even have the ability to make renovations.
Who Can Benefit?
There are several types of situations people can find themselves in that call for an immediate sale of their house, or selling without making repairs. For example, if you’ve fallen behind on your payments and are facing foreclosure, making a quick sale can save you a lot of trouble.
Alternatively, married couples who are going through a divorce might decide to sell their house to simplify the process of splitting things fairly. Rather than deciding who keeps the house and how the other person will be compensated, they can simply liquefy the asset and split the profits.
Other scenarios include:
- Inheriting a home you don’t want
- Being relocated for work
- And more
However, we should also take a look at the potential cons of selling a home in bad condition.
The Downsides of Selling Homes in Bad Condition
Many sellers choose to make home repairs before the sale of their house because it makes it much easy to find interested buyers. In almost all cases, making repairs and updates will also help you sell the house for more money.
Conversely, when selling a home as-is, you’ll need to drop your listing price. Otherwise, buyers will take one look at the home and walk away.
Aside from ostracizing buyers, you also need to think about the buyer’s lender. Many lenders won’t approve an offer for a home that has certain damages or preexisting issues. For example, homes that:
- Have water damage
- Need chimney repair
- Need roof repair
- Have foundation issues
- Have mold
- Have pest infestations
In this case, trying to sell your house as-is might be near impossible. You would probably have to sell to a fixer-upper company or a cash home buyer.
Are You Selling a Home in Bad Condition?
Selling an old house can be tricky. Should you make repairs and renovations or sell the house as-is? Ultimately, you need to look at your unique circumstances.
If you have the time and money, it will probably benefit you to make renovations. However, not all sellers have this luxury.
For more home seller advice, improvement tips, and real estate guidance, check out some of our other articles before you go. Our blog was created to help people like you make good decisions.