Selling "As Is": Good or Bad Idea
In real estate, the term "sold as is" is often greatly misunderstood by both buyers and sellers. Many buyers, particularly first-time buyers, believe that any home that is being sold "as is" is defective. This is not necessarily the case. But, perception is reality. Consequently, many buyers will pass over a listing labeled "as is" because of assumptions about a home's condition. Some sellers erroneously believe that selling a home "as is" means they don't have to disclose pertinent issues about a property's condition. This is a very dangerous assumption. Selling a home "as is" does not release a seller from their legal obligations to disclose all relevant facts concerning their property.
Buyers are not likely to waive their right to a home inspection. They may accept the "as is" stipulation, but still reserve the right to withdraw their offer if they are dissatisfied with the results of any inspections. Furthermore, there are certain defects that a seller would be hard pressed to ignore. For example, termite damage, or infestations, and radon are two conditions that would be difficult to ignore since mortgage companies will not likely issue a mortgage on a home with such defects. Consequently, there's no guarantee that a seller can completely escape having to invest in repairs.
Due to the misconceptions of the phrase "sold as is" and the inability for the seller to evade fixing certain critical defects it's probably best to avoid using the term at all when marketing a home. Technically speaking, unless your lawyer does a particular poor job protecting your interest, every home sale is "as is." As long as a seller is honest in their disclosures, once the transaction is closed, a seller has no further obligations to a buyer.
A better way to handle matters is to market the home without any special stipulations. When you receive an offer from a buyer and negotiate the final terms you can broach the topic of limiting repairs. During attorney-review the attorney can amend the sales contract so that the seller will only address a very finite set of issues (e.g. pest control, structural, code violations, etc., etc…) or limit repairs to a small monetary amount. This will limit the buyer to a narrow set of items that they can request to fix.
In summary, using the terms "as is" in the marketing of a home can turn off prospective buyers before they even see your home. Furthermore, there are certain defects that a seller can't circumvent fixing anyway. So, avoid the use of the term altogether. Price your home right. Market the home honestly and stick to positive terms. Once you receive an offer from an interested buyer you can negotiate limiting repairs to a fix set of items or monetary amount. This approach should result in a faster sale.
Related Tags: real estate marketing, home inspections, selling homes, selling a home "as is
Ed Chaparro is a licensed New Jersey real estate agent with Prudential New Jersey Properties servicing Metuchen, Edison and near-by communities in Middlesex, Union and Somerset counties in New Jersey .
Ed Chaparro has over twenty years of experience working with technology and putting it to use to help people and businesses. Ed Chaparro mixes traditional real estate marketing (MLS, signs, direct mail) with a very aggressive Internet marketing plan that maximizes the number of buyers reached.
For buyers, Ed Chaparro provides methods and communications that enable them to view their options in manner that is efficient, informative and free of any hard-sell tactics. This approach has garnered Ed Chaparro a great deal of buyer loyalty.
For more details and information please visit http://www.EdChaparro.com
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Qualifying Equals More Sales and More Income
In my experience in the new home sales industry and the opinion of the top producers across virtuall - Questions From Home Sellers
Home sellers have been contacting me about selling their homes with the question: "Should - Top 10 Reasons You Can Sell More Real Estate With A Podcast
A lucrative career in real estate used to mean shaking a lot of hands and praying for favorable mark - How Important is a Real Estate Appraisal?
A real estate appraisal is necessary any time you buy or sell any kind of real estate. The purpose - Window Treatments Can Help Sell Your Home - Let a Home Stager Show You How
New window treatments can make a world of difference when selling your home. They can add value and - Sell Land Contract Agreements for Cash To Professional Note Buyers
You can sell land contract agreements to a professional note buyer for a lump sum of money. Many peo - How To Prepare For An Open House
To further maximize exposure, your Realtor may recommend you hold one or two types of open houses as - Selling With A Real Estate Representative
Selecting a RealtorFinding the right real estate representative takes some time and care. A good pla - Home Selling Tips - Tips On Selling Your Own Home And Preparing Your Home For Sale
Top Ways to Boost Your Homes ValueSelling your home is a major life event; buyers and agents will co - Selling Your Home - Exterior Ideas
When listing your home for sale, it must be in the best shape possible. This may mean spending some
Most viewed articles in this category:
- Great Curb Appeal: Your First Line Of Defense For Selling Your Home
Trying to sell your home without "Great Curb Appeal" is an uphill struggle. Without pristine curb a - Dependable Recumbent Bicycle Dealers
Recumbent bikes place the cyclist in a laid-back, easy chair riding or reclined posture. Unlike conv - Prospecting for Real Estate Clients is Not a Short-term Activity
Have you ever mailed a prospecting letter to 100 or even 500 homeowners in your neighborhood, waited - Free Home Staging Tips that Make Your Home Sell Faster
A 2006 Chicago Tribune article cites a National Association of Realtors (NAR) study validating the i - Home Loan Finances
You can take a loan from banks or lending companies. Banks and such companies have their set criteri - Putting Your Best Foot Forward When Selling Your Home
As the real estate market cools off, it is important to focus on the fundamentals if you want to sel - Selling Your Gilbert Home in a Tough Market
Selling Your Gilbert Home When No One Is Making An OfferThis may seem like a terrible time to have y - Real Estate Market for Sellers in 2007
For much of this decade, sellers have sat in the cat seat when it comes to the real estate market. A - Staging, Selling Your Home For More Money
In the middle-of-the-road housing market, homes are remaining for sale longer than they did about on - Trying to Sell a Home with Little or No Equity
Many homeowners are sweating finances these days. For a variety of reason they are in over the head