As-Is Sale?

As a market preparation expert, I am obsessed with ways to maximize a property’s appeal to buyers. Ideally any significant repairs or improvements can take place over a period of time when a homeowner isn’t actively preparing to sell. But that isn’t always practical, possible, or may not even be advisable in today’s low-inventory market.

As of September 2020 the price of “framing lumber” has increased 150% year over year which means any home improvement projects are that much costing more than the start of 2020.

And now in late 2020 it is almost impossible to find qualified contractors to make home improvements or repairs.

I know one electrician’s whose voicemail message is: “If you are an existing customer, leave a message - I will get back to you eventually. If you are a new customer, do not leave a message.”

So if you are looking to sell your home in the short term, what should you do?

Talk with your real estate agent about carrying costs of your home, cost of repairs and the after-repair-value versus the market value of the home today (as-is).

If the expected after-repair-value outweighs all other factors, can your real estate agent help with a pre-sale repair program such as Raveis Refresh?

Or should you putting your home into the market now at a lower listing price and let the home buyer be responsible for any shortcomings after sale? If the needed repairs are significant, you may want to say the home will be sold “As-Is” and instruct your real estate agent to let prospective buyers know that no repairs will be made prior to sale.

An experienced real estate professional should be able to provide data and pros/cons of both approaches to help you with make the best decision to help you meet your goals.

If you are thinking about purchasing an “AS-IS” home in today’s market what does this mean for you? Well, given lumber prices and contractors booking out well into 2021, can you afford the higher renovation costs and can you live in the home without making your desired improvements? If not, what is your plan until the improvements are completed? It’s a lot to consider!

Whether you are buying or selling the cost of raw materials and service professional availability should be part of the decision making process. Any questions, I’m here to help!

Photo by Nolan Issac on Unsplash