Navigating As-Is Transactions: What Buyers and Sellers Should Know
A home is generally listed as-is after it's fallen into disrepair and the homeowner wants to cut their losses. It used to be that a home would almost always be renovated and repaired before being listed for sale but buyers may be more likely to consider eating the repair and renovation costs if it means securing a home in times of high housing demand and a scarce supply of homes. (1)
Typically, as-is transactions are simpler as they involve the cash buyer and the home seller. Here is what both parties (buyers and sellers) should know to ensure seamless transactions;
What Sellers Should Know
If you want to
sell my house fast Philadelphia, here is what you should know to ensure a simplified as-is transaction;
The Home is Sold As-Is
The term "as-is" confuses many home sellers. But it simply means that you (the seller) will sell your house in its current condition without repair or upgrades. You won't be responsible for repairs and improvements, and you won't offer credits to the buyers. So, there may be less negotiation, ensuring a smoother and
speedy transaction Philadelphia.
The Asking Price Should Be Realistic
If you want your property to find a buyer quickly, you should set a realistic price. Most home sellers who sell their property as-is set high prices, which pushes many potential buyers away. But you should not underprice your property just because you are selling it as it is. If you underprice your home to anticipate a bidding war, please know that it may not work in your favor. And you may end up selling it at a very low price. So, research, and price your home competitively to ensure a
quick home sale Philadelphia.
The First Cash Offer is Not Final
Note that most cash home buyers, including
we buy houses Philadelphia companies, provide no-obligation cash offers. You can reject or accept the offer without any financial or legal consequences. In addition, know that the first cash offer is not final. The buyer can adjust the offer after viewing the house and talking to you (the seller).
Refusing to Negotiate Can Lead to the Collapse of the Deal
Just because a cash home buyer presented a lower offer than expected doesn't mean they can't increase it. Besides, you should know that most cash buyers will not pay the asking price. Therefore, you should not be rigid and stick to your asking price. If you refuse to negotiate with cash buyers, the deal may collapse in the end. So, have an open mind, and be ready to negotiate with buyers.
The Buyer Can Inspect the House
Although the buyer may not order a professional home inspection, they can send their representative to view and inspect the house. So, don't be surprised when you see a
we buy houses Philadelphia company representative inspecting the house before they can negotiate with you. They will do that to know the real state of the house and determine the most accurate and fair sale price.
Reviewing Paperwork Before Signing is Crucial
Most cash home buyers will offer to prepare the paperwork and even handle the legal process. As the seller, you will only be required to produce the deed and sign the sale agreement. But no matter how you trust the buyer, you should not sign the sale agreement before reading and understanding it. If possible, hire an attorney to help you go through it before signing.
What Buyers Should Know
Here is what buyers should know about as-is transactions;
The Seller Will Not Be Liable for Problems Noted After the Sale
Once the paperwork is signed and money changes hands, you (the buyer) may not hold the seller liable for damages or issues you noticed after the sale. The as-is clauses will protect the seller from liability if the buyer finds problems with the home. So, take your time to inspect the property to ensure you have identified all problems.
Lowballing Home Sellers is an Outdated Strategy
Inexperienced cash home buyers will want to take advantage of home sellers, especially those selling ugly, depressed, and old houses. They will give them low cash offers, and that is not a good thing. Lowballing home sellers is an outdated strategy, and no cash buyer should be doing it in today's world. As a buyer, you should be ready to offer home sellers fair offers, regardless of the condition of their properties.
Sellers Should Be Paid in Cash at Closure
In as-is transactions, home sellers are paid in full at closure. So, as a buyer, you should have the whole amount (sale price) ready, and once everything is finalized, you should deposit it into the seller's bank account immediately.
It Is Wise to Cover All the Closing Costs
Most reputable cash home buyers cover all the closing costs. If you are not ready to cover the costs, don't consider yourself a serious cash home buyer. Also, note that home sellers who have sold properties before expect you to cover the costs. Prepare to handle the costs to avoid disappointments. Some sellers can even cancel the deal if they are requested to pay a part of the closing costs.
You Can't Ask Sellers for Credits
When you decide to buy a home in as-is condition, you must know that you have accepted the property in its current condition, including any hidden damages or defects. And for that reason, you are not required to ask for credits from the seller. So, take your time and do the math before you close the deal as you will be responsible for the costs of the fixes even if they go higher than anticipated.
Sellers Want Quick Closing
Most home sellers who sell their homes as-is want to close the deals quickly and get better prices. As a buyer have strategies that will ensure a smooth and quick home-selling process. Whether you are a
we buy houses Philadelphia
company or an investor, ensure the closing is done within days, not weeks or months.
Give us a call anytime at 484-484-0971 or fill out this quick form to get started today!
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About the author
Mathew Pezon
Mathew Pezon is the founder and CEO of Pezon Properties, a cash home buying company located in Lehigh Valley, Pennsylvania. With several years of experience in the real estate industry, Mathew has become a specialist in helping homeowners sell their properties quickly and efficiently. He takes pride in providing a hassle-free, transparent, and fair home buying experience to his clients. Mathew is also an active member of his local community and is passionate about giving back. Through his company, he has contributed to various charities and causes.
