If you’re thinking of selling your home in California, now is possibly a better time than ever. Average home prices sit at over $800,000.
With house prices and demand being as high as they are, you might think that selling your home will be easy. You won’t have to do any work, you’ll just call a real estate agent and go on your merry way. Should you decide to do this, how much do you lose selling a house as-is?
Keep reading as we discuss the California housing market and the effect of selling as-is even when prices are high.
What Is an “As-Is” Property?
An “as-is” property assumes that the house is in an unknown, likely not-great condition. It’s a that the buyer assumes all of the risk for when purchasing.
Further, it assumes that the seller is trying to get rid of the house rather than pull a profit. As-is homes are, to a degree, like estate auctions; people come for steep discounts.
As-is homes may have serious problems underneath the hood. The buyer effectively has to gamble. In most cases, the buyer will give an offer without a contingency for inspection, i.e. an agreed-upon inspection before the sale.
However, the buyer has the benefit of being able to whittle the seller down to a much lower price.
How Much Do You Lose Selling a House As-Is?
The short answer is that you will lose some money selling a house as-is. Houses are commodities just like any other. Even if they are in short supply, that doesn’t change the fact that new, better houses sell for more than old, neglected houses.
Houses are an investment. A fixer-upper home (a property that needs extensive repairs and renovations) is going to cost an arm and a leg for the buyer to flip. Few buyers are willing to purchase properties in all conditions.
The price you can expect to get will depend on the home. Remember, the buyer is giving the offer, rather than you setting a price.
Selling a Home in Decent Condition
A home in decent condition does not require significant, massive repairs. Expect to lose about 5 to 10% of your expected price, compared to a home ready for move-in. This assumes the home only needs small touchups, such as new paint or new doorknobs.
Selling a Home in Poor Condition
Poor condition assumes that there are some serious issues with this house. Busted floorboards, drywall soaked by leaks, broken windows, the list goes on. A home in poor condition will require hundreds or thousands of dollars of repairs.
Renovations can add more value to a home than the cost of doing them. So, homes in disrepair can subtract almost as much.
You may lose up to 20% of your expected selling price. In extreme cases, up to 50%.
Find Ways to Sell Your Home
How much do you lose selling a house as-is? It depends since the buyer is the one in charge of making an offer. You might only lose 5% on the low end, but that number shoots up to 50% in the most extreme cases.
Bookmark our blog to keep up with our latest articles.
Copyright © 2023 California Business Journal. All Rights Reserved.
Related Posts
