Biggest Pros and Cons to Selling Your House As-Is in Georgia

Selling your house is a big job: you have to find the right agent, get the property market-ready, and invest a lot of money into repairs and updates. If you’re looking to avoid some of this hassle, you might be thinking about selling your Georgia property as-is. In theory, getting to avoid investing time and money into repairs in the best choice, but there are a few pros and cons to this method that you should consider in order to figure out the best option for your situation.

Cons to selling as-is

Let’s start with the ways that listing your home as-is can make your selling process more difficult. One of the biggest reasons that people list their properties without making repairs is that doing so can make selling quicker, easier, and cheaper. However, there are certain issues that you should be aware of which might turn the simple process of closing on your as-is property into a lengthy and frustrating ordeal.

1. Difficulty finding a buyer

When selling a property as-is, you might have more difficulty finding a buyer. This is simply because more buyers want houses that don’t require any additional updates or repairs after closing. In fact, a study conducted by Curbio found that “77% of buyers won’t consider purchasing a home that isn’t ‘move-in ready,'” and “68% of potential buyers say the biggest deal breaker to buying a home is disrepair and wear and tear.” This means that your pool of potential buyers decreases significantly when listing your house as-is.

However, while finding a buyer can be difficult, you still have options. If you commission a listing agent with experience in selling properties as-is, they may have access to buyers or house flippers that are more willing to buy houses as-is. You also have the option to approach a local homebuying company directly and avoid listing and waiting for a buyer altogether.

2. Lower offers

One of the biggest drawbacks to selling an as-is property is the lower selling price. When you sell as-is, either by listing or by seeking out a cash homebuying company, you do not repair or update the house to bring it to its fullest market value. This means that you won’t be able to sell the property for the highest amount possible. For example, if you invested in new flooring, fresh paint, and renovating bathrooms, your property would list for a higher price than it would if it were slightly outdated and had normal wear and tear. However, by avoiding repairs and listing as-is, you do get to save the time and money that you would have otherwise invested into repairs. It’s up to your judgement to decide which option is better for your situation: making repairs and getting a higher selling price or avoiding repairs and getting a lower selling price.

One other thing to aware of is lowball offers. Some buyers may take the as-is status of your listing as a sign that they can make lower price negotiations. The best way to avoid this is to make sure that you and your agent have a strong understanding of the fair market value of your property in its current condition in your local market.

3. Inspection and financing contingencies

Another drawback to selling an as-is property is that there is more opportunity for the sale to fall through after you accept an offer. This is because the condition of your property can impact your buyer’s willingness to close or their ability to secure financing. In any traditional sale, your buyer will typically arrange to have both an appraisal and inspection done of the property to ensure they are paying an appropriate amount before the sale goes through. When selling as-is, the inspection might find necessary repairs that either you or your buyer were unaware of. These repairs may impact the value of your property, and closing may be delayed or completely stopped if your buyer wants to renegotiate the deal. Renegotiations can involve the buyer lowering their offer, or they might request that you invest in necessary repairs before closing on the sale.

Additionally, the condition of your home can prevent buyers from securing the bank financing that they need to close on the property. Some lenders have minimum property requirements, which means that the house being bought must be up to a certain standard in order for the buyer to qualify for the loan. The buyer’s appraisal will determine if the property meets that standard. If it doesn’t, the buyer may not be able to secure financing, and the sale will fall through. This is why agents often recommend prioritizing cash offers when selling as-is: there is often no appraisal necessary and no time required to close on a loan.

Pros to selling as-is

In spite of the difficulties that selling as-is can present, there are also benefits to this selling method that may work well for your unique situation. As long as you are aware of and prepared to handle the cons listed above, the time and money you can save by selling your property as-is might make that option the best decision for you.

1. Save time

One of the largest benefits of selling an as-is property is that you don’t have to waste time on making repairs before listing your property or directly seeking out a cash homebuyer. Getting your house market-ready is no small task, and depending on the condition of your property, it can take months to handle repairs, updates, decluttering, and deep cleaning. If you’re not looking to dedicate your weekends to DIY projects or to spend entire months waiting for professional labor, selling as-is offers a quicker solution.

However, you also need to remain aware that the condition of your property can impact you ability to find buyers when listing. Unless you decide to sell directly to a cash homebuyer, it’s smart to invest at least a weekend into decluttering, depersonalizing, and cleaning your property in order to make it as appealing as possible.

2. Save money

Another huge benefit of selling an as-is house is that you save money by avoiding the large investment of getting your house market-ready. Even if your property doesn’t need massive repairs, the cost of small fixes like fresh paint, new flooring, and updated fixtures can add up quickly; Clever estimates the average of these costs to be around $7,628 in Georgia. If your property is in need of larger investments, like new plumbing or HVAC, your investment can increase by thousands. If you are in a place where you can’t or don’t want to spend that money, then selling as-is, even in spite of the lower selling price, might be the easiest option for you.

3. Attract a cash buyer

Often, cash buyers are attracted to as-is properties, so even though your pool of buyers is reduced when selling as-is, your house may still be in demand for buyers who are looking for a deal or a fixer upper. Finding a cash buyer is often preferable to a traditional buyer when selling as-is because, as stated above, you can avoid inspection and financing contingencies that might stop the sale. Because these buyers are looking for properties that need work, they are ready and willing to buy your house no matter what kind of repairs or updates are needed.

Additionally, if you don’t want to wait for a buyer to find your listing, you can always directly seek out a cash homebuyer to request an offer on your property. This allows you to bypass the hassle of the listing process altogether, so you don’t have to worry about commissions or investing time and money into getting your house market-ready.

Summary

No matter your situation, it’s important that you learn as much as possible for the different options available when selling your house. If you’re considering selling as-is, make sure you remain aware of both the pros and cons of that option so you can select the best way to have a stress-free sale.