I bought a very old, flipped home for cash in 2020. In a tale as old as time, it looked great, but there were massive issues (talking roof and foundation). It passed inspection at the time (which it should not have, but that’s a story for another day) but certainly would not now. I am prepared to sell it as is, and want some thoughts on how challenging that may be as well as any advice on what to expect. My goal is to at least break even, but I’m trying to prepare to take a loss. I have a great agent, but wanted some outside opinions as well.
Some (possibly) relevant context: the neighborhood is probably 95% rentals and will most likely be purchased for that purpose, it would include all the appliances which are good and brand new, and for the most part, it’s very aesthetically pleasing both outside and in.
Thank you so much in advance and if other information is helpful, I can provide that.
Selling a very flawed home as-is
byu/maskedwanderer inRealEstate
Posted by maskedwanderer
6 Comments
Disclose everything you’re aware of, and let the chips fall
Houses don’t “pass” or “fail” inspections. Every house has issues that need to be addressed.
You can fix those issues and sell for more or disclose those issues and expect a lot less.
Certainly don’t try to hide any issues.
You can list “as is” and hurt your price more but the fact is that everything is negotiable in real estate.
If you paid cash it seems you have the means to make repairs and sell it for more and not pass on known issues.
Don’t waste any time on buyers with VA or FHA financing.
As is, in my area, seems to cut price $150K or more. I’ve seen only two homes sell as is over last 6 months. One was listed by lawyer as part of probate and the other was an LLC due to a bad investment. Both were just looking to exit to other investors.
Why not fill out disclosure to what you know and list? I would rather fix some things + $30K drop in price/comp before seeing $150K loss due to as is listing.
You may want to search your area for as is sold homes to get a sense of what they go for.
Selling ‘as is’ is a signal that you only intend to deal with grown ups.
Lucky for you the only people who will be interested in your house are experienced property people.
Fingers crossed you make some money, but otherwise, remember that real estate is propped up by other people’s mistakes.
List it like you would any other home. Complete a disclosure for known issues and let the market decide.