If you’ve been looking at the San Diego real estate market lately, you may have noticed a lot of properties with an “As-Is” disclaimer. What’s an As-Is property, and why are there so many on the market right now? Let’s dive into some things to consider when selling in San Diego houses in as-is condition. “As is” language puts buyers on alert. It gives notice of potential defects of the home. Deferred maintenance and outright neglect can significantly reduce any homes’ resale value. The “as is” disclaimer automatically reduces the buyer pool and the opportunities for full-priced offers for the home.
The seller is doing what they are supposed to by disclosing any known defects to the property, and intern, the buyer accepts the property in the condition in which they find it.
Note that some defects are readily observable. Others may only be discovered upon inspection by a professional. Thankfully we work with some of the best home and building inspectors who practice at a very high level and will give a complete report on any defects to the home and property.
California properties are sold “as is,” one thing that homeowners can do to comfort potential buyers is to fortify their selling position by offering one year home warranties on the systems and appliances. This should reassure a buyer of the seller’s good intentions and only costs around $600. That small gesture of goodwill helps settle buyer concerns before they are ever raised.
What is an “as-is” sale?
If you own a home in San Diego and are considering a sale, you may be considering an “as-is” sale. This is where you sell your home without making any repairs or renovations.
The “as is” clause serves as a warning sign, forcing the buyer to rely upon its investigation to determine whether to purchase the property rather than upon the seller’s representations.
As you might imagine, these types of sales are less common than traditional sales, and fewer buyers are interested in as-is properties. However, there are situations where as-is homes make sense. For example, if you need to sell your home quickly, an as-is sale may be a good option.
Job changes, inherited property or divorce with court-ordered liquidation of assets are all reasons a quick as is sale may be considered a good option.
Selling your property as-is may seem frightening, but it can benefit both the buyer and seller in various ways. The buyer will be aware of any potential issues with the property and ask for price reductions to cover the cost of repairs. The seller can avoid making costly repairs and create a stress-free exit in the timeframe that best suits them.
What you can reasonably expect from an “as-is” sale
When a homeowner needs to sell a house but is not in a position to do work to it, an “as-is” sale is a possible solution. “As-is” means the home is sold in its current state, and the buyer is responsible for all repairs. But what exactly is a reasonable expectation of an “as-is” sale? How much of the work can a buyer reasonably expect to be done by the seller? When a house is sold as-is, the work required to bring it up to code may be extensive or not as extensive. A buyer should know exactly what they are getting into and be prepared to do a lot of the work. Because there is no formal inspection or appraisal on an as-is sale, a buyer should be prepared to bring in his inspector to check the property out.
As you might imagine, the California Association of Realtors, a sold as-is house may require significant work. For instance, the plumbing may need to be replaced, the electrical might need work, and the foundation or roof may need to be repaired. It can be expensive, so make sure you have money set aside to make the necessary repairs before purchasing a home in this condition. Better yet, have your Realtor negotiate deductions for repairs and your inconvenience.
An advantage to Selling As-Is
– If you are in a challenging financial situation, repairs may not be an option. If your property has defects and you can’t fix them, you may have to sell as-is.
– If you face a difficult life situation and cannot deal with the stress of a drawn-out sales process, or if you are seriously ill, then selling your home as-is may be the best option.
– The owner may find themselves in financial difficulty and need to sell their home immediately. This often happens when the owner cannot keep up with mortgage payments or make necessary repairs to the property. In the case of the probate court or inherited properties, the home often needs to be sold to pay taxes, debts and beneficiaries or heirs of the case. The same holds for divorce. All property must be divided, personal and real property and the proceeds disbursed to husband and wife separately. In these cases, the owner may have no choice but to sell the home in its current condition, known as an “as is” sale, because the courts have ordered or will order the sale and distribution of proceeds of the sale.
The problem with selling As-Is
– It’s assumed homes in California are being sold as-is. What you see is what you get. However, clutter and disrepair will drive down the home’s perceived value. We work with families in probate court or the divorce process and often don’t have the emotional bandwidth to handle any changes, chores or upkeep that need to be done before selling. As a result, the home may look cluttered and unkept.
Most buyers who come to preview a home and property have suffered neglect with some pessimism and apprehension. I’ve seen buyers pull up to the curb, and if the front yard is overgrown, they will assume the home has been neglected and move on to the next house to preview. When buyers see the home requires repair, it attracts bargain hunters and sisters.
-If your potential home buyers notice that your home has some defects to the structure of your house or the foundation, they’ll most likely bargain with you. Although it’s important to remember that even though those defects might be pretty significant, you have to compromise with them as best as you can.
– Your task of convincing potential buyers that your home is reasonably priced will be difficult. Because buyers usually come into a transaction with preconceived notions, it will be hard to show them that there are many reasons why your home is desirable.
Selling your home as-is can be a great way to sell your home and get cash. However, when the market moves quickly, it may be better to wait for a buyer willing to pay more for your home.
If you have inherited property or are going thru a divorce, there are home considerations. Vacant Real Estate requires ongoing maintenance and upkeep and a special insurance rider.
Whether you need maintenance or landscaping, refinancing and tax accountant, general clean up and disposal, roofing or fencing needs, the team of businesses we work with run their services at a very high level, just like our real estate team. Imagine the one thing that would make a world of difference if taken off your list. Odds are we have a resource for you.
Call today, and we’ll put you in touch with a service provider specializing in helping you. Assuming you already have a great lawyer, they can handle 100% of all the legal issues. If you don’t have a great lawyer, my team will match you with the lawyer or other service provider you may need. It’s our primary purpose to help you in any way with the additional 75% of what needs to be done to prepare the estate for sale. Our team has you covered with services ranging from estate sales to tax accountants, purchasing another home, relocation and professional moving services, and financing the new move.
Selling your San Diego house as-is can be a great way to sell your home for top dollar quickly and easily. I hope you found the information helpful! After reading this article, I’m sure you’ll have questions about selling your San Diego house “as-is,” that’s normal. Don’t hesitate to call Kevin McClenahan at 858-284-7778, committed to helping you get the highest possible price in the timeframe that best suits your needs with the least amount of stress and hassle.