You can make the most of selling your New Orleans house as is by eliminating surprises and adjusting expectations.
You need to sell your NOLA home and know that it needs some repairs. Will selling as is stall the closing? Attract fewer buyers? Not if you set and manage your expectations upfront and eliminate potential surprises along the way. Sometimes selling as is can be the most sensible, financially viable option, though with the benefits come the challenges, too.
What is selling as is?
Selling “as is” is a legal term, and it means what it sounds like. You are selling your house in its current condition, with all its existing issues, without making any repairs or upgrades to its exterior or interior. This also means that the buyer understands the terms of the transaction, and that awareness is reflected in the signed purchase and sale agreement.
What it isn’t
Selling as is doesn’t relieve sellers of their legal and moral obligations to disclose certain problems and answer the buyers’ questions truthfully, without concealing defects or making misrepresentations. Real estate agents must also disclose any serious defects that might steer the buyer away from entering a real estate transaction due to the Consumer Protection Act.
Can it stall closing?
The answer is yes. If there’s any type of damage to your New Orleans property, the lender might require that certain repairs are made prior to mortgage closing.
Will you attract fewer buyers?
Not necessarily. If you’re upfront and honest about the condition of your home, you will not drive away potential buyers: You’ll just attract a different type of buyer. It’s natural for a buyer to wonder what is wrong with your house and whether you’re trying to hide any defects, but expectations could be managed if you are upfront and honest. This could help avert negativity, mistrust, or efforts to low-ball you.
Steps to selling as is before listing
You can ease the process and minimize stress for yourself and your buyer by doing your due diligence and taking a few steps before you list your home, including:
- Getting a pre-listing inspection. That way, you’ll learn the extent of the issues and can be upfront and truthful with the buyer about your home’s condition. In addition to a seller’s disclosure, a pre-listing inspection can also equip the buyer with the necessary knowledge to decide whether to proceed.
- Pricing your home accurately and realistically should help manage expectations. It should account for the work that needs to be done by the buyer, and the asking price should reflect its current condition. One of the most common mistakes homeowners make when selling as-is is overvaluing their home. Many people assume that if their home needs 50k in repairs and would be worth 150k after repairs, that they should be able to sell it for 100k. The issue with that is most people buying homes as-is are going to expect a discount since they’ll have to spend weeks or months renovating. It’s important to price your home in line with what homes in similar condition have sold for. You need to be sure to talk to a New Orleans real estate agent with experience in renovations and repairs if you want to be successful selling as-is, since they’ll have a much better idea of how to price your home and how to explain the potential improvements that can be made.
Work with a knowledgeable New Orleans Realtor
Understanding your options and making the right decision based on your particular circumstances is the first step to selling your home as is. We understand that your situation is unique, and we can help you determine whether you should consider selling your New Orleans property as is. We are skilled at estimating the necessary repairs and improvements and will help you price your home to sell. If you are currently looking to sell a home in the metro New Orleans, or have any questions about selling your New Orleans property as is, please contact us to discuss your goals for your property.