There are many reasons why you might want to sell a house in as-is condition. As a home owner, you know your house needs work, perhaps major repairs such as fixing a leaky roof, replacing the heating and cooling system, or rewiring the electrical system to bring it up to code.
But you may not have the resources to fix problems before selling. Repairs and finding and managing contractors can take a lot of time. And once they get started, they could uncover additional problems, which will end up costing you even more money.
If you are an heir who has inherited a house, you may not even know what needs fixing. If you live out of town, making the repairs yourself or overseeing the work might not be practical. It’s easier to simply sell the property as-is.
Know that selling a house as-is may simplify the sales process, but you aren’t going to get maximum dollars. Interested buyers will look for you to offer a rock-bottom price to compensate for the risk they’re taking in the event they purchase major unforeseen problems with the house.
Furthermore, understand that when you go to sell a house as-is, it doesn’t mean you can completely wash your hands of responsibility for the condition of your property. Yes, the buyer is assuming risk by purchasing the house as-is. Yes, selling a house as is does mean “what you see is what you get.” However, you are still required by law to at least disclose the problems you know about. If you don’t, the buyer may be able to come back later and sue you for damages, making you liable for the costs to fix those undisclosed defects. You must be truthful about revealing problems and issues to the best of your knowledge.
Those laws vary from state to state. Here’s where to find out more about disclosure obligations when selling a house in Virginia, in Maryland and in Washington, DC.
The bottom line here is that when you sell a house as-is, you’ll have to price the house at the lower end of the market and be prepared to lower it even more. Don’t take it personally. Figure out ahead of time how low you’ll go and be prepared with a counteroffer for those offers you receive. Sometimes buyers are willing to meet you halfway.