I sold a house as is. It worked out great. In the listing, I declared that the back deck was at the end of it's life, and that one of the bathrooms needed a renovation. I agreed to a home inspection, which went well to the best of my knowledge, and the home sold for well above the listing price and was only on the market about a day and a half.
In the 1980s I bought my first home "as is" - Home inspections weren't a thing yet. There were a few issues, for example the toilet in one bathroom lacked a wax ring, they placed a foil pie pan under the floor that caught leaks before they dripped into the basement. After 8 or 9 years, the moisture finally warped the floor around the toilet, and we found the problem when we replaced the floor. I doubt a home inspection would have caught this because the bathroom looked normal, and underneath the bathroom, the basement ceiling was finished, so the pan was totally hidden until we removed the toilet.
We made an offer above listing price on an ‘as-is’ sale because the house was in a desirable historic neighborhood, on a nearly 2-acre lot, close to city center. Sellers were the adult children of the deceased owner, and simply wanted to dump the property. They had disclosed that the house had regular pest control treatments, every 6 months over multiple years. Our home inspector (required by our bank) discovered a few roof leaks, a very large, active beehive in the crawlspace, and evidence of active termites in the roof rafters. We requested copies of the inspections/treatments. Oops, sellers were missing the receipts. No problem, provide us with the name of the pest control company. Oops! Sellers (the kids) started pointing fingers at each other. No problem, either we cancel the deal, or they agree to pay for the bee and honeycomb removal, pay for a very minor roof repair, AND provide a credit for us to have the house tented after purchase. They grudgingly agreed, and ended up settling very close to the original listing price.
Excellent video, as usual. I recently opted to sell my large 23 year old custom-built home, AS IS. I have 100% equity, newer HVAC and HWH. I conveyed a 1 yr.old washer, and an older but working dryer. The *original Roof has no leaks, but needs replacement. The shingles are worn. I wanted to use available cash to downsize. Had I replaced the roof, it wouldn't have been possible to purchase a Townhouse. The location and neighborhood are both pluses. I did disclose in writing, one small area of tile cracks (boxes of new tiles to be left). The home was power washed, and it made a huge difference. I declined a yard sign (savy buyers on the web, not wasting fuel driving around). I'm not a fan of open houses either. I only wanted Cash ( with POF) or Conventional Mortgage prospects. The home was priced very well, and professional photos taken. Before the house photos even posted, I had 3 listing appointments. An Offer of $4k under list price came in with the first showing. Cash, no Contingencies. I accepted. I am paying 4.5% listing fee, as agreed on with the in house Contract. An As Is listing is a very good option, under the right circumstances. Ty for the many informative videos. 🙋
I wish i found your web site before i bought this house earlier in the year. You have so much information i could have used. I am glad I found this. Thank you.
Jen - this information is geared more toward a cash buyer. A home being sold As-Is to a buyer who is obtaining a traditional mortgage is going to be difficult to close. FNMA/FHLMC/FHA do have a couple of programs which can help the right buyer with these situations but at the end of the day any major problems on a home must be corrected before closing. If the seller isn’t providing any relief for major repairs, the buyer will have to front the cash for the repairs before closing. Any property being sold As-Is will be heavily scrutinized by a lender and in most cases the loan will be denied.
@@melissaroth4467- A full loan approval would be issued to the buyer before any funds are spent on major repairs. The appraisal will be made Subject To Completion, and will list the items which are being repaired. Upon completion of the repairs the appraiser will return to the property and certify the repairs are completed satisfactorily. Upon the lenders receipt of a completion report from the appraiser the loan can go to closing/settlement.
Excellent information! Not sure about all states but when I, as executrix, was selling a home it was nice that I didn't have to fill out a seller's disclosure. Sure 'I heard' a few things about the house but did not have first hand knowledge - that would have made it tough to fill out the form. We did have multiple offers on it and sold it to a cash buyer that waived the inspection. Those were the days. :-)
ALL homes are listed as is and most home buyers do not even know the problems their house has making a disclosure almost pointless. Homes should be listed with a professional inspection performed by a random inspector. You want to know 4 things, price, location, features, and quality. When you look up a house you get the first three but have literally no idea of the quality, this IS the scam in real estate. Get the buyer emotionally invested into a house and then tell them how bad the house is, most buyers will end up making that purchase and will end up regretting it.
We have walked away from 2 homes as 1st time home buyers after we had an inspection done I've looked at hundreds of properties in Arkansas if not more if the listing says (As Is) I immediately assume the property has issues & will not pass an RD inspection or appraisal Buyer & Seller realtors we've delt with have been awful We trust no one they just want the sale Sellers also won't fix anything then wonder why the property doesn't sell also way overpriced
*watches closely* This is one of those things where, I want to sell my house as-is because I don't want to spend a bunch of money fixing problems when it's really likely to just get rehabbed by whomever buys it. I don't want to rehab it to sell it. I want to sell it to buy a new house! However as-is won't be my savior, it seems.
You could definitely get an appraisal, however, you're better off getting valuations from at least 3 agents. The appraisal will cost you money, the valuations will not.
In addition to what Jen said, the other issue is appraisals are more than often done by apprasiers that may not know your particular area well. In large metropolitan areas, this is particulary acute in areas with a wide deviation in values (price/sqft), such as gentrifying areas. An appraiser rarely specializes in one area, and may be doing apprasials for farm/ranch in the morning and then a downtown condo in the afternoon. They go where the appraisal desk sends them. The other issue is that apprasiers have a set number of critieria to add value for. For example, Houston area apprasiers don't give any additional value for private driveways (vs a townhome community with a shared driveway) or yard space in the downtown area, yet these features add siginifcant sales value. Less of an issue in the suburbs of course, but it can be a real headache for urban sellers. On the opposite end, I'm sure farm/ranch is equally difficult (does the Lamborghini tractor convey with the property? =D) If you take three appraisers and have them appraise a property without a sales contract for reference, you'd probably get 3 different values that deviate greater than if you get three realtors (that know the area well) to value the same property.
If you're asking to be connected to an agent in Colorado, I have agents across the country in my personally vetted referral partner program. I'm happy to connect you! ⭐ Get a referral to. a '20%' agent:jensylvester.com/realtor-referral
Many agreements would put a buyer in breach if they even requested repairs and credits. It depends on the language of the contract. It is just a matter of what recourse options the seller has at that point and if it is worth it to pursue. Not all contracts are written the same. This is misleading information.
Not sure how the information is misleading......A buyer can ask for whatever they want, whenever they want. Whether they're entitled to anything is another story.
@@savvyhomeseller It is based on terms of the contract for that property. I can't speak to your contracts, but there are many agreements, in which, just asking for repairs or credits in an AS-IS agreement, based on that langauge of that contract, will put buyer in breach, and their earnest money at risk and possibly other damages if warranted. There maybe options for a buyer to back out, based on inspection, but just the act of asking for repairs or credits alone, will put some at risk of not acting in good faith. Again, all dependent on how the contract reads and what the recourse options are. I would just caution you on giving advice when talking to people outside of your licensed area and/or area of knowledge. Not trying to be jerk, but I see RUclips agents doing this stuff all time, just waiting for lawsuits to start dropping and ethics complaints start getting filed. Just saw another person giving advice to agents on how to negotiate commissions in the face of NAR changes. It's like the concept of ethics just disappeared with the introduction of RUclips. The next few years should be interesting for you Agents; good luck!
I sold a house as is. It worked out great. In the listing, I declared that the back deck was at the end of it's life, and that one of the bathrooms needed a renovation. I agreed to a home inspection, which went well to the best of my knowledge, and the home sold for well above the listing price and was only on the market about a day and a half.
In the 1980s I bought my first home "as is" - Home inspections weren't a thing yet. There were a few issues, for example the toilet in one bathroom lacked a wax ring, they placed a foil pie pan under the floor that caught leaks before they dripped into the basement. After 8 or 9 years, the moisture finally warped the floor around the toilet, and we found the problem when we replaced the floor. I doubt a home inspection would have caught this because the bathroom looked normal, and underneath the bathroom, the basement ceiling was finished, so the pan was totally hidden until we removed the toilet.
Jen - you are such a knowledgeable professional. If you were in Arizona - I would choose you as my agent. Thanks for educating us!
We made an offer above listing price on an ‘as-is’ sale because the house was in a desirable historic neighborhood, on a nearly 2-acre lot, close to city center. Sellers were the adult children of the deceased owner, and simply wanted to dump the property. They had disclosed that the house had regular pest control treatments, every 6 months over multiple years. Our home inspector (required by our bank) discovered a few roof leaks, a very large, active beehive in the crawlspace, and evidence of active termites in the roof rafters. We requested copies of the inspections/treatments. Oops, sellers were missing the receipts. No problem, provide us with the name of the pest control company. Oops! Sellers (the kids) started pointing fingers at each other. No problem, either we cancel the deal, or they agree to pay for the bee and honeycomb removal, pay for a very minor roof repair, AND provide a credit for us to have the house tented after purchase. They grudgingly agreed, and ended up settling very close to the original listing price.
Excellent video, as usual.
I recently opted to sell my large 23 year old custom-built home, AS IS.
I have 100% equity, newer HVAC and HWH. I conveyed a 1 yr.old washer, and an older but working dryer. The *original Roof has no leaks, but needs replacement. The shingles are worn.
I wanted to use available cash to downsize. Had I replaced the roof, it wouldn't have been possible to purchase a Townhouse.
The location and neighborhood are both pluses.
I did disclose in writing, one small area of tile cracks (boxes of new tiles to be left).
The home was power washed, and it made a huge difference.
I declined a yard sign (savy buyers on the web, not wasting fuel driving around). I'm not a fan of open houses either.
I only wanted Cash ( with POF) or Conventional Mortgage prospects.
The home was priced very well, and professional photos taken.
Before the house photos even posted, I had 3 listing appointments.
An Offer of $4k under list price came in with the first showing. Cash, no Contingencies. I accepted.
I am paying 4.5% listing fee, as agreed on with the in house Contract.
An As Is listing is a very good option, under the right circumstances.
Ty for the many informative videos.
🙋
AWESOME! Thanks for watching. - appreciate you being here!
I wish i found your web site before i bought this house earlier in the year. You have so much information i could have used. I am glad I found this. Thank you.
Thanks for watching - appreciate you being here!
Jen - this information is geared more toward a cash buyer. A home being sold As-Is to a buyer who is obtaining a traditional mortgage is going to be difficult to close. FNMA/FHLMC/FHA do have a couple of programs which can help the right buyer with these situations but at the end of the day any major problems on a home must be corrected before closing. If the seller isn’t providing any relief for major repairs, the buyer will have to front the cash for the repairs before closing. Any property being sold As-Is will be heavily scrutinized by a lender and in most cases the loan will be denied.
Front the cash BEFORE closing? What happens if the deal doesn't go through?
@@melissaroth4467 - A buyer would have full loan approval from the lender before it reaches the point of spending the funds for repairs.
@@melissaroth4467- A full loan approval would be issued to the buyer before any funds are spent on major repairs. The appraisal will be made Subject To Completion, and will list the items which are being repaired. Upon completion of the repairs the appraiser will return to the property and certify the repairs are completed satisfactorily. Upon the lenders receipt of a completion report from the appraiser the loan can go to closing/settlement.
Front it to whom?
Excellent information! Not sure about all states but when I, as executrix, was selling a home it was nice that I didn't have to fill out a seller's disclosure. Sure 'I heard' a few things about the house but did not have first hand knowledge - that would have made it tough to fill out the form. We did have multiple offers on it and sold it to a cash buyer that waived the inspection. Those were the days. :-)
@@blujeans9462 Many homes sold As-Is are homes inherited through death and the inheritors just don’t want to mess with a long and labored process.
You bring up an excellent point - some states require a seller disclosure be completed, but not all. Thanks for sharing!
ALL homes are listed as is and most home buyers do not even know the problems their house has making a disclosure almost pointless. Homes should be listed with a professional inspection performed by a random inspector. You want to know 4 things, price, location, features, and quality. When you look up a house you get the first three but have literally no idea of the quality, this IS the scam in real estate. Get the buyer emotionally invested into a house and then tell them how bad the house is, most buyers will end up making that purchase and will end up regretting it.
We have walked away from 2 homes as 1st time home buyers after we had an inspection done I've looked at hundreds of properties in Arkansas if not more if the listing says (As Is) I immediately assume the property has issues & will not pass an RD inspection or appraisal Buyer & Seller realtors we've delt with have been awful We trust no one they just want the sale Sellers also won't fix anything then wonder why the property doesn't sell also way overpriced
Great and helpful information. Been there, done that. LOL!
*watches closely* This is one of those things where, I want to sell my house as-is because I don't want to spend a bunch of money fixing problems when it's really likely to just get rehabbed by whomever buys it. I don't want to rehab it to sell it. I want to sell it to buy a new house! However as-is won't be my savior, it seems.
i liked this video as-is haha
Awesome 😂
If you don't have any money to fix anything could you get an appraisal or have home inspection to get idea of what you could price your as house?
You could definitely get an appraisal, however, you're better off getting valuations from at least 3 agents. The appraisal will cost you money, the valuations will not.
In addition to what Jen said, the other issue is appraisals are more than often done by apprasiers that may not know your particular area well. In large metropolitan areas, this is particulary acute in areas with a wide deviation in values (price/sqft), such as gentrifying areas. An appraiser rarely specializes in one area, and may be doing apprasials for farm/ranch in the morning and then a downtown condo in the afternoon. They go where the appraisal desk sends them.
The other issue is that apprasiers have a set number of critieria to add value for. For example, Houston area apprasiers don't give any additional value for private driveways (vs a townhome community with a shared driveway) or yard space in the downtown area, yet these features add siginifcant sales value. Less of an issue in the suburbs of course, but it can be a real headache for urban sellers. On the opposite end, I'm sure farm/ranch is equally difficult (does the Lamborghini tractor convey with the property? =D)
If you take three appraisers and have them appraise a property without a sales contract for reference, you'd probably get 3 different values that deviate greater than if you get three realtors (that know the area well) to value the same property.
How do you make a realtor to us, if you live in Colorado?🙂
If you're asking to be connected to an agent in Colorado, I have agents across the country in my personally vetted referral partner program. I'm happy to connect you! ⭐ Get a referral to. a '20%' agent:jensylvester.com/realtor-referral
Many agreements would put a buyer in breach if they even requested repairs and credits. It depends on the language of the contract. It is just a matter of what recourse options the seller has at that point and if it is worth it to pursue. Not all contracts are written the same. This is misleading information.
Not sure how the information is misleading......A buyer can ask for whatever they want, whenever they want. Whether they're entitled to anything is another story.
@@savvyhomeseller It is based on terms of the contract for that property. I can't speak to your contracts, but there are many agreements, in which, just asking for repairs or credits in an AS-IS agreement, based on that langauge of that contract, will put buyer in breach, and their earnest money at risk and possibly other damages if warranted.
There maybe options for a buyer to back out, based on inspection, but just the act of asking for repairs or credits alone, will put some at risk of not acting in good faith.
Again, all dependent on how the contract reads and what the recourse options are.
I would just caution you on giving advice when talking to people outside of your licensed area and/or area of knowledge.
Not trying to be jerk, but I see RUclips agents doing this stuff all time, just waiting for lawsuits to start dropping and ethics complaints start getting filed.
Just saw another person giving advice to agents on how to negotiate commissions in the face of NAR changes.
It's like the concept of ethics just disappeared with the introduction of RUclips.
The next few years should be interesting for you Agents; good luck!
⭐ Get a referral to a '20%' agent: jensylvester.com/realtor-referral