As is property sale – what does it really mean?
What doesn’t it mean?
You’ve probably seen the signs and flyers around offering to buy your home for cash.
Are they legit or is it a scam?
Let’s clarify what an “as is property sale” means and debunk common myths of selling your house for cash, known as private, off-market real estate sales.
What does As Is Property Sale mean?
As is means the house is sold in its current condition.
This means you aren’t required to make changes or upgrades or even clean it to sell your house. If you don’t have money to make repairs, that’s okay. If you are unaware of potential issues, for example after inheriting a home you want to sell, that’s okay too. No need to pay for a home inspection.
Can you get a loan on a house sold as is?
Lenders won’t typically finance potential buyers if the home has major problems and is not livable. Banks want a home inspector to confirm the property the buyer wants to mortgage is worth what they will pay. Cash buyers don’t require bank loans or mortgages so they have more flexibility to buy your home as is.
The home doesn’t even need to be insurable.
What doesn't As Is Property Sale mean?
Selling a house for cash is not an automatic rip off.
Not every cash buyer is unethical full of lowball offers looking to take advantage of homeowners down on their luck. Buying and selling a home that’s not listing for sale on the market doesn’t mean it has to sell lower than market value.
Many people misunderstand the motivation of buyers and sellers considering an as is property sale. Let’s break down some common myths.
Is is safe to sell a house as is?
Many believe cash home buyers are unethical. That is a myth.
Like any industry, there are always poor examples that make customers question the integrity of the rest. But not all cash buyers are the same. MJS Properties provides honest advice about the home and the market. If mutually beneficial, they will make a fair cash offer.
Private home buyers are real estate investors.
An investor evaluates opportunities and allocates their money where there is an expectation for increased value to earn a return on their investment. A real estate investor, just like a real estate agent, will start by determining the home’s value. They look at the prices and conditions of other homes on the market and compare them to the potential the as is property has after improvements are made.
What makes a good investment?
To make investing in an as is property sale worthwhile, the buyer needs to make some calculations:
- Potential selling price after work is complete
- Less: Expenses to make it ready to compete for top dollar
- Less: Desired profit
- Equals: Cash Offer
Assuming the investor has access to resources the homeowner doesn’t, they can prepare the home cheaper and faster than the homeowner. This is where the profit lies.
It’s not about taking money away from the homeowner but taking away the time, expense, and hassle.
Cash buyers are not ONLY looking for bad houses
If you own a home that is riddled with problems, then an as is property sale can be a great option. MJS Properties’ specialty is rehabilitating distressed homes. We have the experience and knowledge in restoration to ensure we properly rectify issues and beautifully transform the home.
But… cash buyers are looking for more than just problem homes.
Cash offers for homes are also great solutions for any homeowner looking for an easy option for selling their home. See the list of pros above.
A fair cash offer isn't a low-ball offer
The biggest myth of all: Selling for cash is a rip-off
An ethical private home buyer will evaluate the condition of the home and assess the work that needs to be done to make it move-in ready and compete with others similar on the market. The reduction in price covers the time, expense and inconvenience removed from the seller and transferred to the buyer.
It all starts with a conversation
An as is property isn’t the best option for everyone but gathering information to weigh the pros and cons is always a good idea. Then you can make the best decision for your situation.
We will evaluate the condition of your home if it were sold in its current condition and answer any questions you have about other homes on the market in your area. There is no charge for our services and there is absolutely no obligation, so call us for advice and answers to your questions.