Pros and cons of selling your house as-is in Christchurch

Selling a property is a high-value transaction indeed. So during this overwhelming process, as a seller, you might miss out on some crucial aspects, some pros and cons of selling your house as-is.

So let us dive into some pros and cons that you should consider while making the sale.

When you have finally decided to sell your house as-is in Christchurch after a natural disaster, it becomes apparent why you want to sell it. There can be various reasons for it, like relocating or buying another house. So there is hardly any consideration to spend on repairs, and you might be trying to sell the house as-is. There are five cons that you want to consider when selling a house as-is.

1. The first one is the apparent one that buyers will perceive your home as something is wrong with it. When a buyer perceives there something wrong with your house what does that mean? It also means that they are probably thinking about dropping your price pretty hard, and they are trying to figure out exactly what it is because they are uncertain whether they wish to take on the headache that is your home or if it will be the dream home they are after.

2. The second thing is to be prepared that you and your listing agent will have to work extremely hard to demonstrate why your property should be sold for fair market value or at least a higher price than the initial lowball offer.

3. The next thing is to be prepared for fewer buyers going into your home. Many house buyers aren’t of the mindset to buy the house as-is unless they find a gem in it, as most of them are not interested in doing the renovations by themselves.

Now, many home buyers would prefer something much more, that is, move-in-ready or at least a home with strong bones to the house. So if the bones in your house are broken, it already presents an issue.

So if it’s just a matter of updating, refreshing doing a little bit of painting, this would work fine with most open-minded people. But if there is something wrong with a house or just some things about it that just don’t sit, it might not work.

A lot of them are already going to be approaching the property with skepticism in many cases. Buyers are only going to think that the sellers are trying to hide something.

A buyer is going to have a home appraisal done. If the appraiser goes into the home and notes specific health and safety items are defunct with the property, you may not sell to that.

If your house presents a health and safety issue, and appraiser will call it out, and you will be expected to fix it if you wish to move forward with that offer.

Let’s take a look at some of the pros of why you might want to consider selling your home as-is.

1. The first one is genuine, which is not to make the repairs. Maybe it’s a situation where you are in a little bit of distress yourself or aren’t as healthy as you once were. Now you are trying to sell a property, you know, you don’t have the money to make the repairs even if you want it to be more of a forgiving selling as-is situation at that point in trying to figure out how to put a deal together.

That’s most amenable to both you and a prospective home buyer with full disclosures being made and folk open and honest conversations taking place during the negotiation process.

Figure that out. So if you are financially cash-strapped, maybe selling a home as-is is a good idea to avoid the vast majority of repairs that may be required.

2. The second thing is just the stress of the home sale. Some people are so anxiety-pro that any time there’s a change in their life.

It upsets their mental, emotional and psychological state if selling a home is one of those things that’s a significant life change for any of us, and let’s just be honest and be clear about that at the same time.

Some people can produce panic attacks. So in this regard, they don’t like confrontation whatsoever or even the notion of a conflict perception. They don’t want to be in disagreement with everybody. They prefer to be in harmony.

We all know people that are like this. Sometimes people are so timid that they just don’t want the stress and the hassle of selling the house. And in that case, they might be looking to sell the home as-is just because they don’t want to have to put themselves into a position that could cause them a panic attack.

3. The next thing to consider is if you are in a financial distress position, where perhaps you have missed your mortgage payments, you receive notice of default that the bank intends to foreclose on your house. You are trying to sell it before the foreclosure proceedings kick off all the way, and you get evicted from your home.

In that case, you might decide to pay the remaining balance on your mortgage and get out from underneath that property, but you don’t have a lot of money to make any kind of repairs to the property if they come up. So in that position again, it makes sense to make full disclosure.

That is disclosure as well that if you are delinquent on your payments. That is a disclosure that has to be made that you could be potentially moving forward through the foreclosure process. The buyer has to be made aware that it changes the transaction type itself for which the documentation is required. It changes many different things to do with how we proceed now, just to give you a heads up.

You just need to know what the upsides are and downsides are so that you can make a well-informed decision that is right for you. If we are always honest, it will always keep us on the right path, and it will help others know what’s going on and make them comfortable moving forward with us to help us all get what we want that is, the goal of getting it sold and achieve their dream of helping them by their new home.

4. The fourth thing is to realize that a buyer is more than likely going to have still a home inspection performed. It is always wise for a home buyer to have a home inspection performed, even if it’s their 100th home. It is extremely wise to have a home inspector go in with their professional eyes, look at all the different components of the house, check it out, and put it back to the buyer.

So you as a seller, even though you are selling as-is, your home will still need to be made available for a home inspector to go in if the buyer chooses to have a general home inspection or any other home Inspections done on the property, that’s part of their buyer-due-diligence.

They are entitled to that as their right, and they need to have the opportunity. So you still need to open up your home to that, yet you may be asked to make sure repairs go back to what happens if that appraiser goes out and identifies health and safety concerns. You chose to accept an offer with a certain kind of finance type where those repairs must be made.

5. The next thing is to understand what the middle ground and what the compromise looks like if it’s a situation where you are ready to get the repairs done, which are big enough and should fall under your responsibility for getting done. It is the right thing to do. And the buyer is also handling in a manner that is easy for you as a seller, and at the same time, any repair work is not huge enough to work upon for you as a buyer.

In the end, you want to give somebody the house that’s going to become the new home for somebody, and it should be in the best condition possible so that they can enjoy it and live in it.

It’s about finding the middle ground of which reasonable and acceptable to both you and an individual homebuyer chatting it over with your individual trusted real estate advisors, and finding that ground together to move forward.

6. The last thing to do is to price your home appropriately. So if you decide that selling a house is right for you, then be prepared to price your home correctly based upon the renovations, the repairs, or anything needed to be done to that home.

So let’s say that your home at fair market value condition was worth $500,000 and then let’s also say that you understand and know that it’s going to take about 125,000 thousand dollars to repair the home.

Your fair market values. So if we already know the fair market value, your home should be 500,000. We know there are roughly 125,000 dollars of Renovations that are needed in that property. The price should be right up to $375,000, if not $350,000.

So it’s important to price it appropriately. If you try to get $500,000 for a house that you are selling as-is and it needs that kind of work, then you are not going to get it, and you are not going to be able to sell your home because unless you get open-minded to take a massive lowball offer at that time.