When it comes to selling your home, there are multiple directions that you can take after evaluating different factors such as time, money, and the extra hassle associated with some traditional methods. If you are looking to sell your property with a real estate agent or directly as an owner (FSBO), your should also take into account the marketability of your house and how attractive it is for potential buyers.
However, you can also take on a different approach. In this article, we will discuss the most important things you will need to know if you want to sell your house as is in Tacoma or any other city or state.
So, without further ado, let’s dive right into it:
1. What does it mean to sell a house as is?
The first thing that you will need to know in order to sell your house as is in Tacoma is to have a clear understanding of the concept. So, what does it mean to sell a house as is?
Selling a house “as is” means that the owner of the property will sell it in the exact condition that it is in at the moment of the transaction, without spending budget on improving the marketability of the house by making additional repairs or upgrades. In other words, when the house is being sold “as is”, the seller is declaring that they aren’t going to address any repairs that the property may need.
Under this condition, if the buyer requests any repairs before purchasing the property, the seller will typically decline them without adjusting the price through further negotiations, even after the home inspection. In this case, the buyer assumes the necessary repairs and the cost for them.
This method is different from a traditional real estate transaction, which involves back-and-forth price negotiations. In traditional real estate selling, if the home inspector identifies certain issues, such as corroded pipes, drain pipe damage, problems with electricity or other issues that require solid repairs, the buyer may request a reduction in the price of the property because of that.
However, this isn’t an option when selling a house as is.
2. Why would someone sell a house as is?
There are multiple reasons why someone would sell a house as is in Tacoma or any other city. Some of the most common ones include:
2.1. The seller can’t afford the repairs
If the property is in a really bad condition, or requires a lot of major repairs that the owner cannot afford to pay for, he can choose to sell the house as is without assuming these costs. A lot of home sellers prefer to list their property as is because they are not in the position to refurbish it before putting it on the real estate market.
In fact, according to Better Homes & Gardens, homeowners should expect to spend an average of $3,600 in 2022 for home repairs. However, certain issues or home projects may require an even higher budget of up to $10,000. This is a sum that many homeowners can’t afford to pay before selling their property.
2.2. The seller wants to sell the property fast
Another reason why you may decide to sell your house as is can be time. There are multiple occasions in which sellers are pressured to sell their property as quickly as possible, including:
- A divorce that requires the sale of the property
- Being behind on mortgage or facing foreclosure
- A passing family member
- The seller is close to bankruptcy
- Personal reasons
Other possible reasons may include inheritance, the need for repairs but the impossibility to do so (as we mentioned in the previous point), moving out of state, etc. In these cases, it is faster and easier to sell your house as is in Tacoma than list the property directly on the market or sell with a real estate agent.
Just so you can get an idea, according to Real Estate US news, the average time to close on a home purchase with a real estate agent is 49 days, a time that can easily double if you are listing the home directly as an owner.
On another hand, to sell your house as is with a cash buyer such as Ultra Home Buyers, you only need 10 days. It is by far the easiest and fastest alternative, especially when time is pressuring you and the occasion is requiring you to seek a quick alternative.
2.3. The homeowner wants to avoid stress
One of the most popular reasons why homeowners can decide to sell their house as is is because of stress, especially if they are coming out of an already difficult situation such as divorce, family passing or financial troubles.
Selling a house is a stressful event on its own, and if the property requires costly or complex repairs (electricity, plumbing, etc.), this creates an additional hassle that many homeowners prefer to avoid altogether.
So, selling the property as is is a great way to avoid additional stress and hassle. For example, with Ultra Home Buyers, you can skip repairs, listings, showings, and anything else in between – and you can be closing the deal in as little as 10 days.
3. Advantages & disadvantages of selling your house as is in Tacoma
If you want to sell your house as is in Tacoma, you should also know about the advantages and disadvantages of this alternative to traditional real estate selling. It isn’t necessarily good nor bad – it depends on your situation, the reasons why you are selling in the first place, and the amount of time and money that you are willing to spend in the process.
So, let’s take a look at the pros and cons:
- Fewer selling costs – the biggest advantage of selling your property as is is that it is associated with selling costs. If you would sell it with a real estate agent, there will be a variety of costs, many of which homeowners even forget to consider. For example, lender required repairs may start from $2,500, closing costs from $3,000, add another $3,000 for recordation taxes, etc. We aren’t even speaking about agent fees, which can amount to up to 6% of the property’s price.
- Closing the deal is much faster – as we already mentioned, closing the deal when selling your house as is in Tacoma (and any other city) is significantly faster than doing it with traditional real estate routes. The timing will depend on the cash buyer, and some are faster than others. For example, with Ultra Home Buyers, you can be closing the deal in as little as 10 days.
- Lower selling price – one of the disadvantages that comes with selling your property as is is the lower selling price compared to selling the property on the market. However, this is not always the case considering the amount of agent fees, closing costs and taxes that homeowners end up paying when selling traditionally. In many occasions, the actual net price that you can get for the property on the market will be similar to the one you can get from a cash buyer (which allows you to skip all of the above-mentioned fees and taxes).
- Fewer potential buyers – another disadvantage of selling the home as is is that it it may attract fewer potential buyers compared to listing it on big marketplaces. In some occasions, the “as is” can be a red flag for potential buyers, and cause some buyers to assume that there is something seriously wrong with the property.
4. You can consider a pre-sale home inspection
Another thing to keep in mind before you sell your house as is in Tacoma is your target audience. Each homeowner will have a target audience to which they will market the property in order to get the best deal possible. For example, they may want to sell to cash buyers, investors, or end buyers (that will use the house as their home).
In case you prefer to sell your property to end buyers or even investors, you may want to consider a pre-sale home inspection to make it easier to close the deal and assure them that there is nothing dreadfully wrong with the house. Some benefits of a pre-sale home inspection include:
- Better negotiation power and a good understanding of the issues (if any)
- Opportunity to fix “deal breakers” before selling
- Fewer low offers because you will know the true condition of the property
- It can reveal positive sides of the property to highlight in your Marketing strategy
Additionally, you can also consider getting estimates on the needed repairs. Even if you don’t do them yourself, many buyers will be happy to know exactly how much they can expect to invest in renovation or major upgrades, and this can make you stand out from competitors. It is an excellent way to assure them that there is nothing hidden behind the sale of the property.
However, if you are considering to sell your house as is in Tacoma to cash buyers, you will most probably not need a pre-sale home inspection. Cash buyers such as Ultra Home Buyers will take care of everything so you can worry less about the sale of your home, and focus on those things that matter to you the most.
Sell your house as is in Tacoma: consider a pre-sale home inspection
5. When selling your house as is, it’s important to disclose everything
Another crucial thing that you will need to know if you want to sell your house as is in Tacoma is that it’s important to disclose everything that you know about your property, especially those disclosures that are required by law.
For example, in some states such as California, the “as is” language should provide the potential buyer with notice of any patent defects, and the buyer is accepting the property in the condition that is “reasonably observable” as per the “as is” terms.
However, due to the complex nature and the peculiarities of each state, we always recommend consulting with a real estate attorney when drafting “as is” language so you can make sure that you always meet the requirements.
Some important things that you should always disclose to potential buyers include:
- Whether your home is located in a flood zone
- Roof or siding problems
- Fire and/or smoke damage
- Heating system issues
- Problems with plumbing or electrical systems
These are some of the most important considerations that you will have to keep in mind if you want to sell your house as is in Tacoma. Depending on your situation and the context in which you are looking to sell your property, it can be a great alternative to traditional real estate selling.
Do you want to sell your house as is in a fast and easy way? Get in touch with Ultra Home Buyers today.