Maybe you have been living in your current house for years and have been putting off repairs and maintenance, or you decided to purchase a fixer-upper that just became too overwhelming. Whatever scenario you are facing an excellent option for you if you’re considering selling is to sell your home as-is. Selling as-is can help if you are in a time constraint or financial hardship. Furthermore, passing those projects to someone else would bring instant relief.
Selling as-is can mean different things to different people. Some may think an as-is sale means a stress-free transfer of property: you move out, leave the key, and that’s it.
For others, an as-is sale may bring up images of an old shack on a hill that a desperate homeowner is hoping to dump onto an oblivious buyer.
In the end, the truth of the matter lies somewhere in the middle, and each case is unique.
In general, selling a house regardless of its condition can be a time-consuming process. So what does selling an as-is house look like? To help you decide if selling a home as-is in Kansas City is for you, we have created a full guide to explain the process.
Tips On Selling A House As Is In Kansas City
What Does Selling As-Is Mean?
When selling a property as-is, it usually means that the buyer purchases the property just as it is, repairs and all. The seller will not be investing in any pre-sale home improvements, and any requests for repairs will be denied. The future owner will receive the house with all its issues and faults included.
Can You Sell A House As Is In Kansas City?
Yes, you can sell a house as is in Kansas City. The state of Missouri is a “caveat emptor” state. Meaning sellers are not legally required to disclose any property defects, damages, or other deterrents that could affect the buyer’s decision to purchase the residence. But the law does require that sellers inform the buyer if the property was previously used for methamphetamine production.
Ideally, though, it would be recommended to disclose any known issues with the house. Typically, most purchase agreements have contingencies that allow the buyer to back out of the sale if an inspection determines that the home’s condition is worse than initially thought. Though not required taking the extra step of providing a disclosure statement can help reassure potential buyers.
Why Would You Sell A House As Is?
Life can bring about unique and unexpected challenges like an illness, death, divorce, or job loss, to name a few. So for most people who sell a house as is in Kansas City are doing so because of financial or emotional distress.
Homeowners facing difficult situations may not be able to afford the necessary repairs or simply may not have the emotional energy to handle the work involved. In other cases, they may need to sell fast to avoid foreclosure.
Another situation may be that you purchased a fixer-upper with the intent to renovate the home for yourself or as an investment. But as the months have passed, maybe little work is being done, or you realized you got in over your head. Home renovations are notorious for going over budget and for more issues to come up that were not previously accounted for.
Whatever may be the reason, it’s easy to see why some owners would be willing to sell their property below its potential market value simply to avoid the hassle that typically comes with selling a home.
Pros and Cons Of Selling A House As-Is
Regardless of your situation, selling a house as is in Kansas City is attractive to virtually every seller. No homeowner has ever said, “I am so happy to spend my time interviewing, collecting quotes, and supervising renovations. And I can’t wait to spend tens of thousands of dollars to fix up a home for someone else to live in.”
However, you may find there is a downside to not doing repairs and selling your home as-is. Let’s take a look at some of the pros and cons of selling a house in as-is condition.
Pros Of An As-Is Sale:
Being able to close fast is the biggest perk of an “as-is” sale. To get an idea of how long it takes to renovate a house, and then sell on the open market, take a look at these statistics:
- Average Time to Sell After Listing in Kansas City: 67 days
- Average Time To Close in Kansas City: 35 days
- Average Time For a Mortgage Approval: 45 to 60 days
- Renovations- Cosmetic Only: 2 -3 months
- Renovations- Full Property: 3-12 months
The average time from starting renovations to selling is 6-months for a cosmetic rehab and 12-months for substantial repairs. All while you are still making payments on taxes, insurance, utilities, and any unexpected issues.
Selling a house to an as-is buyer takes just a few weeks.
You Will Save Money On Repairs
Home renovations are pretty costly. If you are updating an older home or even a home reaching that point where repairs are coming due, you could easily spend tens of thousands of dollars.
To remodel or renovate your home in Kansas City, on average, costs $24,000, with the typical range around $13,000 to $36,000. To get an idea of the general cost breakdown, check out the details below:
- Kitchen Remodel: $4,500 – $49,000
- Bath Remodel: $6,000 – $14,000
- Bedroom Remodel: $1,000 – $5,000
- Appliances: $1,000 – $10,000
- AC Unit: $4,000 – $6,000
- Furnace: $3,000 – $5,000
- HVAC: $1,900 – $4,900
- Roof: $5,000 – $7,000
- Plumbing: $45 – $512
- Basement: $10,579 – $27,000
The bottom line is that you will save a large sum of money selling as-is.
Get To Avoid Stress
Have you ever completed a home renovation? Needless to say, going through the process is a headache. You will be dealing with contractors, unanticipated repairs, and costs as well as months of delays. Renovations will test the patience of even seasoned real estate agents.
Ways a home renovation can become stressful:
- Not knowing where to start- It’s not as easy as HGTV would make it look.
- The cost- Renovations can burn a hole in your wallet.
- Unexpected surprises – Something always comes up.
- Interference with daily life- You may have to avoid certain parts of the house while work is being done.
- Dealing with contractors- You may need to interview and hire lots of contractors and coordinate their work schedules.
- Lost time- Overseeing the whole process will interfere with work and family obligations.
- Uncertainty- Home renovations are notorious for surpassing budgets and timelines.
The Cons Of An As-Is Sale
If you would like to save money, time, and stress from a home rehab, that is perfectly understandable.
However, there are a few cons to selling a house in Kansas City as is.
Lower Sales Profits
Sorry to say, but a house that needs repairs isn’t worth nearly as much as a newly updated one.
Renovating a house that needs work builds market value in two ways:
- Financial Investment-
Renovating a house is a big expense. A buyer will pay more for a completed home because they didn’t have to come out of pocket for the renovations.
- Sweat Equity-
Any renovations, even a basic cosmetic one, can take months of contractor supervision. Your efforts build “sweat equity” because you spent time and energy on repairs, and now the buyer won’t have to.
Unfortunately, buyers will offer less for houses that require work since they will be giving up their time and money to renovate the home.
And if you plan to use a real estate agent, remember there is a 6% commission that will come out of your final sale price, cutting into any profits even more.
Fewer Buyers Are Interested In As-Is
Everyone hopes to one day purchase their dream home, and usually, an image of a home that needs work doesn’t come to mind. The majority of buyers are not interested in buying a house in poor condition.
Here are a few types of buyers you will likely lose when selling a house in need of renovations:
- Buyers that are using mortgage financing
A lot of home buyers rely on conventional mortgage financing. So houses with notable defects are usually not approved for a mortgage. Examples of defects include broken window panes, electrical problems, leaking plumbing, termite damage, old or leaky roof. The sale must be “cash only” if your home has any those problems.
- Buyers that need to move in
If a buyer needs to move in quickly and your home is in bad condition requiring repairs right away, potential buyers may pass on a fixer-upper.
- Buyers looking for a turnkey property
A lot of buyers aren’t interested in making repairs. Maybe because they live remotely, are too busy to handle repairs, or want a hassle-free home.
You are probably wondering what happens when fewer buyers are interested in your home?
The sale of your house goes slowly, especially when selling a home that needs repairs at a high price. Realistically, only a handful of buyers will pay top dollar to go through the trouble of renovating. Unfortunately, you should expect to go months before finding the right buyer.
The Best Way To Sell A House As-Is
If looking to save time and money on a house you’re about to move out of, that is entirely understandable. But how do you find that perfect buyer that would be willing to take on a project like your as-is property?
Well, that’s where selling to a cash home buyer like Offer House would come in handy. Offer House is a local Kansas City business that purchases houses in as-is condition. Not only will you not have to worry about finding a buyer, but they will also be prepared to purchase your home in any situation.
Another benefit of selling to Offer House is that they pay in cash, which means they don’t have to wait on traditional bank financing. Since they have the money on hand, they can even close in as little as 7 days, which is great if you need to move quickly.
And since you would be selling directly to Offer House, you won’t need to hire a real estate agent. So there are no commission or fees involved.