We’re quote familiar for the need for speed in a Southern Maryland real estate deal. From clients who’ve taken a new job out of town with an impatient employer to the need to sell a deceased relative’s home, “Should I sell my house as-is?” is a common question.
Then there are clients who tell us they’re not the best at maintenance and have let the home go over the years. Now they need to sell, and they have neither the time nor the money to make the needed repairs.
Before you try trying to sell your Southern Maryland home in as-is condition, take a look at some of the issues you should consider.
Price considerations
A recent study shows that most homebuyers – and especially those buying for the first time – want a move-in ready Southern Maryland home. And, they say they are willing to pay more for such a home.
The truth is, many of the homes your house will compete with will be closer to move-in ready condition than yours if you decide not to make improvements and/or repairs. Unless your home is priced low enough to compensate the buyer for what he or she will need to spend to bring it to comparable condition, it will sit on the market.
If your budget can tolerate a very low listing price, you’ve passed the first challenge of trying to sell as-is.
Lenders have their preferences too
If your buyer is using a government-backed loan program, such as the VA or FHA, the lender will have a thing or two to say about your home’s condition.
Typically, the message is, “fix it or we won’t loan the money to the buyer.” You can almost guarantee this for problems related to health or safety.
When you consider that the VA grants almost half a million mortgages a year and the FHA is the preferred program for first-time buyers, that’s a lot of people to exclude from the buyer pool.
The FHA-approved appraiser will be the one to determine what needs to be fixed before the home qualifies for an FHA-program buyer. Repairs listed as essential on his or her report are the ones to be most concerned about.
A conventional lender may even balk at making a loan for your home if the repairs needed include HVAC, roof, or structural problems. Some will require that broken window glass be repaired and ask that any code violations in existence be remedied.
By the way, some home insurance companies are also asking for repairs before they will insure the home for the new owner.
Come up with a strategy
It’s understandable that some fixes are just too expensive for some sellers to manage. For these, we can suggest the FHA 203(k) program in our marketing materials.
With this program, FHA will wrap the cost of the Southern Maryland home and the cost of rehab in one loan, so the buyer has only one payment a month. There are other rehab mortgages out there as well.
You’ll also want to think about how you’ll deal with the very low offers you’ll receive. The mere mention of the words “as-is” acts as a magnet to investors and flippers. Know the lowest price you’ll accept and remind yourself to keep your emotions in check and to not take lowball offers personally.
Finally, despite the problems with the home, the one way you can help boost the price, even a small amount, is to ensure that it’s clean at all times.
If your home will be vacant, consider some inexpensive staging techniques to help buyers overcome the as-is aspect of the sale.
When a home is neat and tidy (both inside and out) it sends a subliminal message to potential buyers that someone does care about the home.
Brandywine MD Homes for Sale and Real Estate Services in Southern Maryland. You now have a search engine to help you with your Southern Maryland home search! And I’m ready to provide you with a custom home valuation if you’re considering selling your home. Let’s connect to discuss how I can help you. Contact Kimberly Bean at 301-440-1309
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