We hear it a lot; Homeowners would like to sell their house “as-is” because fixing up an outdated property or a property that needs work is just annoying. There’s more to it than just selling a house as-is. You need to make sure that’s the best route for you to take. So how do you know…? Here’s how to sell a house as-is in California:
What does it mean to sell a house as-is?
Selling a house “as-is” usually implies that the seller has no intentions of negotiating any repairs with a potential buyer. An as-is sale almost always refers to the condition of the house, not the condition of the deed. When a seller sells a house as-is, this does not mean the seller does not have to disclose any defects that could affect the buyer’s decision to buy. Some of these defects include foundational or structural issues, mold, hazardous environmental conditions, major plumbing issues, or other issues that could affect the habitability of the property. An as-is clause will not absolve a seller of liability especially if there is an attempt to cover up or a failure to disclose known major defects.
There are many benefits to selling a property as-is in California and it can really save someone a lot of money and time, depending on your situation.
Do buyers want fixers in California?
If you’re wondering how to sell a house as-is in California it’s important to remember that most retail buyers prefer a house with little to no work needed. A few regular buyers might want a fixer house in order to get a “deal”. When speaking of buyers as a whole, rarely do buyers want major fixer houses, or houses that are completely out of date and/or in need of repairs. With houses that are out of date or in need of repairs it might make more sense to sell straight to a cash buyer instead of paying the commission to a real estate agent to find a cash house buyer in California. This is especially true if the property cannot qualify for financing. So how do you determine if you should list it or go straight to a cash buyer? Well, if there are issues with the roof, mold, foundation, plumbing, electrical, or the house needs more than 3/4 of it updated it might be good to at least entertain a cash offer.
Should I fix the property?
Fixing the property yourself can be more profitable; if you have the funds and the time, and don’t mind dealing with contractors or doing the work yourself, it might be worth it. Just remember that if you’re fixing up a house that entails more than just some minor cosmetic work, you should realize that having some experience will help you. Fixing up a property that needs more than just minor cosmetic work takes some know-how and time. Just be prepared and ask a friend or family member with experience for help.
In determining what needs to be done to get full retail value, check out the other houses in the neighborhood by using sites such as Zillow or Redfin. How long have they been listed for? What are the conditions of the properties? What would you need to do to your property to get it up to par with the rest of the listed properties?
Selling a house as-is in California is not as complicated as it sounds. Determining if spending time and money to repair the property is worth it, can be. Here’s a great link to help you to determine very easily how much it may cost to update or repair your property. Before sellers take on a project, they should ask, “is this even worth it?”. If you own a property that only has an outdated kitchen, maybe doing the work yourself is worth while if you’re willing to spend the money, time and effort.
Just remember to factor in the final sales costs, such as escrow fees, realtor fees, title fees, buyer concessions, appraisals an inspections, and deduct them from the final sales price. This usually adds up to roughly 8% to 12% of the final sales price, depending on the area.
If you decide to fix it yourself to get the most money, here are 10 minimum repairs you should complete if you want to sell to a conventional retail buyer:
- Patch all holes and cracks in walls and ceilings.
- Fix all broken appliances and HVAC systems.
- Repair leaky faucets.
- Replace worn carpeting.
- Repaint dark or marred walls with neutral paint (not white).
- Replace broken windows.
- Repair the roof.
- Change out dated light fixtures / ceiling fans
- Replace old linens / window coverings.
- Fix code violations
Cyndie Buys Houses can provide you with an all cash, as-is offer, even if all the above 10 items are not repaired. Sellers never pay any commissions, closing costs or concessions. The price offered is never with any sort of fees or additional costs.
How Do I Get The Highest As-Is Offer Possible?
Step 1: Collect offers from California cash house buyers. If the offers seem good to you and you understand the value of your property, then it might be a good idea to pick one. Just make sure you’re working with a reputable cash buyer.
Step 2: If you are not pressed for time or the property just needs minor cosmetic work, listing it with a realtor or selling it FSBO could be a good choice. Just remember, if you list it with an agent, make sure to write what’s called an exclusionary clause in the commission agreement to save you money should you decide to take a cash offer later from the cash buyer. Just list the two or so cash buyers on the clause and you should be fine. (This could save you thousands later!) For more information on exclusionary clauses click here.
Step 3: Pick an offer. Do not always go with the highest offer. Make sure the buyer can close and is reputable.
If you’re considering selling a house as-as in California and would like an offer within 1 business day or less, call us. Receiving an offer is free, and requires no commitment. To sell your house as-is now, call us at 510-345-4015.