Who Benefits from Selling a Home "As Is"?

 

A person's decision to sell their home comes with a lot of other decisions causing an owner to stress or procrastinate.  Early in the process, the owner will consider selling the home "As Is" to avoid the looming issues that accompany selling a home.

From a seller's standpoint, "as is" means the buyer will purchase the home in its current condition without asking for any repairs.  While it is convenient for the seller to take this approach, the normal trade out is the property will not result in the highest possible sales price.

Regardless of how the home is sold, the seller is required to disclose all defects which include repair history, condition of systems and appliances, water damage, pest infestation, radon, and other things that affect the value and livability of the home.

From a buyer's point of view, they may think there is something wrong with the home which could result in them avoiding the home completely or making a substantially lower offer to cover not only the known issues but also the unknown ones.

It would be reasonable for a seller to allow a buyer to make inspections to determine what the condition of the home and what kind of expenses they might be faced with.  In some situations, based on provisions in the sales contract, the buyer, after making inspections, may decide not to continue with the contract which could extend the marketing time for the seller by having to find another buyer.

Selling a home "as is" is like wholesaling the property.  A comparison could be trading your car to a dealer when buying a new one.  The dealer will usually give you the best price for the new car but won't offer you a retail price for the trade-in.  If the dealer were to give you a "retail" price for the trade-in, they would probably expect a "retail" price for the new purchase.

Even if the seller doesn't want to go through the effort to make major improvements, they still need to consider things that will ease the buyers' concerns about the home.  These include a thorough cleaning, decluttering, yard cleanup, and repairs on known issues like leaking faucets, lighting, doors, and appliances to name a few examples.

If this path is taken, the cost to the seller will be not realizing the maximum sales price compared to comparable homes that have sold recently in the area that have been updated.

Sellers Pros & Cons	Buyer Pros & Cons
Not spend money to prepare the home	Lower purchase price
Won't maximize proceeds from the sale	Less competition from other buyers
Could sell quickly if priced properly	Financing could be challenging
May take longer to sell	Looking for an opportunity to build sweat equity
Effort finding/negotiating with contractors	Improve the property to your preferences
Investors looking to make a profit                                                                      There are companies who will buy your home for cash.  Their ads are very appealing to sellers because it solves their concerns about putting the home on the market.  Realize these companies are not charities but "for profit" who expect to be able to recoup the money paid to you, pay all repairs, renovations, and sales expenses plus make a profit for the risk taken. As a homeowner, you will always realize more of your equity by approaching it with a risk/reward analysis to determine how to sell it for the highest price with the least expenses.  Your real estate professional will act as a fiduciary to put your best interests ahead of their own.  It is worth the effort before embarking on an "as is" scenario.                                    Holly Hurd~ Berkshire Hathaway HomeServices Kee, Realty.... your source for all your real estate. We are one of the Largest brokerage firms in Michigan, we have proven we can stand the test of time in this ever changing marketplace a proven leader for you and all your real estate needs. In today's competitive real estate market, timing is everything. Many good homes are sold before they are ever advertised. Beat other homebuyers to the hottest new homes for sale in the Wayne/Oakland co. area with my New Listings Notification. If you own real estate that you're thinking of selling, I would be happy to provide you with a FREE Home Evaluation. Whether you are buying or selling a home, hire someone like me, who wants to earn your business. I invite you to contact me as I'd be happy to assist you with this important transaction. In addition, if you have any general questions about buying or selling real estate in Michigan, please contact me as I'm more than willing to help.YOU CAN REACH ME DIRECT BY PHONE ANYTIME AT 734 718-5736 #YourHomeNorthvilleMichigan Real Estate Homes for sale in Northville Michigan Northville, Mi. 48167 #realtor #realestate #realestatemarket #hometown #hollyhurd #home #historicnorthville #buy #buyingahome #buyrealestate #condo #homeforsale #northvillemi #sellingyourhome #smalltown #shop #bhhs #buildahome  #moveinmichigan #greattimetobuy #SOLD #realestateforsalemi  #puremichigan #berkshirehathaway #sellahome

3 Things You Can Do Now To Help Your House Sell Later

 

It is my experience that people are often ready to sell their home when they are sick and tired of taking care of it. The endless maintenance and upkeep is usually what pushes them to contact me and begin the process of getting their home on the market.

Given how often I see this scenario, I though it might be helpful to provide some tips for you to consider BEFORE you get to this point.

1. Clean out. Clean out. Clean out. The more space you have, the more stuff you will accumulate. Start the process of getting rid of the things that you no longer use or, in the words of Marie Kondo, which no longer bring you joy. Clean out often. Pick a space weekly (or monthly) and spend a little time cleaning it out. Schedule regular donation pickups so that you know it will leave the house shortly. Join a local 'sharing' group or buy-nothing group. Do what you need to do to get unused stuff out of the house! 
2. Do the work! Deferred maintenance causes my clients to delay getting  their homes on the market. I don't ever want a buyer to think, 'this house is a disaster.' We do the work prior to going on the market, but honestly, it is easier to do as you go. Just pick one project a month, or season, and schedule it. 
3. Shine it up.  This one goes along with deferred maintenance, but the truth is, we stop seeing what we see every day. Take a really good look at the grout, the caulk, bathrooom and kitchen fixtures, light fixtures (inside and out) and other items through out the house. Do they look beat up? Old? How about garage doors? Your front door?  Is there weather seeling dragging along each time you open the door? Does your trim look like it is rotting? Do the screens have holes in them? Are there broken seals or locks on your windows? I can help you get all this taken care of, but it it takes time. Do it when you notice--not when you are desperate to list your home.

Can you sell without attending to these things? Of course you can. My objective, however, is always to get you the most amount of money in the least amount of time. A house that is well prepped is in the best position to sell quickly and for a premium. Houses that feel 'less than,' often sell for 'less than' market value.

I am always available if you need resources.

Holly Hurd~ Berkshire Hathaway HomeServices Kee, Realty.... your source for all your real estate. We are one of the Largest brokerage firms in Michigan, we have proven we can stand the test of time in this ever changing marketplace a proven leader for you and all your real estate needs. In today's competitive real estate market, timing is everything. Many good homes are sold before they are ever advertised. Beat other homebuyers to the hottest new homes for sale in the Wayne/Oakland co. area with my New Listings Notification. If you own real estate that you're thinking of selling, I would be happy to provide you with a FREE Home Evaluation. Whether you are buying or selling a home, hire someone like me, who wants to earn your business. I invite you to contact me as I'd be happy to assist you with this important transaction. In addition, if you have any general questions about buying or selling real estate in Michigan, please contact me as I'm more than willing to help.YOU CAN REACH ME DIRECT BY PHONE ANYTIME AT 734 718-5736 #YourHomeNorthvilleMichigan Real Estate Homes for sale in Northville Michigan Northville, Mi. 48167 #realtor #realestate #realestatemarket #hometown #hollyhurd #home

#historicnorthville #buy #buyingahome #buyrealestate #condo #homeforsale

#northvillemi #sellingyourhome #smalltown #shop #bhhs #buildahome 

#moveinmichigan #greattimetobuy #SOLD #realestateforsalemi 

#puremichigan #berkshirehathaway #sellahome  

A Recession Doesn’t Mean Falling Home Prices

 

What Would a Recession Mean for the Housing Market?

According to a recent survey from the Wall Street Journal, the percentage of economists who believe we’ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there’d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months.

And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there’s a recession?

Here’s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession would mean for the housing market today.

A Recession Doesn’t Mean Falling Home Prices

To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at the recessions going all the way back to 1980, home prices appreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn’t mean home values will fall.

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would repeat what happened then. But this housing market isn’t about to crash. The fundamentals are very different today than they were in 2008. So, don’t assume we’re heading down the same path.

A Recession Means Falling Mortgage Rates

Research also helps paint the picture of how a recession could impact the cost of financing a home. As the chart below shows, historically, each time the economy slowed down, mortgage rates decreased.

Fortune explains that mortgage rates typically fall during an economic slowdown:

“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

And while history doesn’t always repeat itself, we can learn from and find comfort in the historical data.

Bottom Line

There’s no doubt everyone remembers what happened in the housing market in 2008. But you don’t need to fear the word recession if you’re planning to buy or sell a home. According to historical data, in most recessions, home price gains have stayed strong, and mortgage rates have declined.

If you’re thinking about buying or selling a home, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.

3 good arguments for selling a house in the winter

 

Serious Buyers look in the winter

One of the most frustrating parts of selling a home is window shoppers. In the spring and summer, Sellers are more likely to run into people who are “just looking” or who might just be curious about what the inside of the house looks like.

In the winter, Sellers are much less likely to encounter people who don’t have any intention of buying. Bad weather, shorter days, and year-end responsibilities make window shopping less prevalent.

On the other hand, people who do look at houses in the winter tend to be more serious about buying. They’re braving the elements. They’ve got their year-end ducks in a row. They may actively be looking now to avoid the spring housing rush.

And in some cases, selling a house in the winter can yield a higher price for Sellers. According to realtor.com, “Statistics show that homes actually sell at a slightly higher price in winter.”

If your Sellers don’t want to deal with window shoppers, selling a home during the winter could be the answer. Be sure that your Sellers understand the difference between the kinds of Buyers who look in the winter and Buyers who look during peak seasons.

Fewer homeowners try selling their house in their winter

Sellers might be tempted to wait until spring because that’s when everyone else sells. But fewer Sellers on the market means more eyes on the houses that are on the market. This is an instance when going against the grain can be a big differentiator, especially if you and your Sellers can stage the house well.

When Sellers have less competition to worry about, it can create a quicker sale. With this in mind, it’s important that you clearly understand how urgently your Sellers want to sell. Make sure you ask this question directly, as it can help you serve your clients’ needs more successfully.

Selling a house in the winter can be faster

Between more serious Buyers and less competition, selling a home in the winter can yield faster sales. According to one Redfin study, when Sellers list their houses in the winter, they’re more likely to sell within six months than a Seller who lists in the spring.

Holly Hurd~ Berkshire Hathaway HomeServices HWWB, REALTORS.... your source for all your real estate. We are one of the Largest brokerage firms in Michigan, we have proven we can stand the test of time in this ever changing market place a proven leader for you and all your real estate needs. In today's competitive real estate market, timing is everything. Many good homes are sold before they are ever advertised. Beat other homebuyers to the hottest new homes for sale in the Wayne/Oakland co. area with my New Listings Notification. If you own real estate that you're thinking of selling, I would be happy to provide you with a FREE Home Evaluation. Whether you are buying or selling a home, hire someone like me, who wants to earn your business. I invite you to contact me as I'd be happy to assist you with this important transaction. In addition, if you have any general questions about buying or selling real estate in Michigan, please contact me as I'm more than willing to help.YOU CAN REACH ME DIRECT BY PHONE ANYTIME AT 734 718-5736 #YourHomeNorthvilleMichigan Real Estate Homes for sale in Northville Michigan Northville, Mi. 48167 #realtor #realestate #realestatemarket #hometown #hollyhurd #home

#historicnorthville #buy #buyingahome #buyrealestate #condo #homeforsale
#northvillemi #sellingyourhome #smalltown #shop #bhhs #buildahome 
#moveinmichigan #greattimetobuy #SOLD #realestateforsalemi 
#puremichigan #berkshirehathaway #sellahome