Many people when they are selling a house as-is have the question of: do I have to fix anything up first? The answer to this is actually going to depend on your buyer. If your buyer is going to be getting a mortgage, then your house will need to pass a four-point inspection typically.
A four-point inspection details the condition as well as the expected life of the roof, a/c, electric, and plumbing. Your buyer's lender will need insurance on the property before making the loan. Most insurance companies will not insure a house that cannot pass a four-point inspection. So in this case, yes absolutely, you will more than likely have to make some repairs before selling. Now if your buyer were a cash buyer, then typically there is no requirement to pass a four-point inspection, so you don't have to worry about any of these items. Cash buyers are usually looking for houses in the first place that need work, so they can renovate them and increase their value.
If you are going to try and get quotes on the repairs your house needs, make sure you get a lot fo them. You might be very surprised to learn that different contractors and different companies will quote you COMPLETELY DIFFERENT prices on everything. We have seen homeowners get roof quotes underquoted at $7,000, just to have the next quote come in at $20,000. In this case, find more companies, find more contractors, and this way you can get the details of the quotes and compare them line item by line item to make sure they are quoting the exact same job. Afterwards, you will have a clearer understand of exactly how much the repairs should cost.
Even though you are selling a house as-is, it is still important to disclose any problems ahead of time. If you sell a house and the buyer later discovers that the plumbing is in bad shape and it is going to cost a lot more money than they budgeted, this won't come back to you as a seller. However, if there were a sinkhole or settlement claim that you knew about and you hid this from the buyer, this could be a really big problem. Even if something is not quite as serious as say a sinkhole, still disclose it. We have seen over and over where a buyer has attempted to sell a house with hidden problems. If a buyer discovers big issues before the closing, then you can be sure they are going to back out of the contract last minute.
Another important topic to talk about when selling a house as-is, is would be to qualify your buyer. Make sure you have a real buyer. You would be amazed to find out how many cash buyers are not actually able to pull through with the cash. Most cash buyers who are not wholesalers, but real buyers, are actually getting what we call hard money loans. Hard money loans are private loans at very high interest rates with very strict terms. That being said, hard money lenders usually want an appraisal or a broker's price opinion on the value of the house. They will want general contractor quotes, a credit check, paystubs, and more from the borrower, AKA your buyer.
Many times, one of these things falls through and a buyer cannot close. Be sure to question your potential buyer's source of funds and find out their history with whatever lender they are going to use or if they are going to use actual cash. We really hoped this video helped you understand some key topics around selling your house as-is.
When it's time to sell your house, give us a call or fill out the form on our website. We would love to work with you.