We Buy Houses As Is – No Repairs or Updates Required in Houston?
Why Fix It… Just Sell It!
Do you own a property that is in Less than Perfect Condition but would like to have certainty in your sales process to Move On into your next chapter?
This is a very popular debate amongst sellers who realize that perhaps a retail sale is too demanding not only on time and energy to bring the property up to current buyer market expecttions and ever changing trends but also the capital investment and inconvenience of dealing with contractors might not be a fit.
A cash offer might make the most sense if in fact time and convenience is of value to you over a full market retail sale. At the end of the day it is just your preference.
A lot of times we get asked by sellers… Do I have to fix my house before selling it?. The short answer for that question is NO, you don’t have to. Now, we want to go even deeper on that question and show you the reasons why it’s better to sell your house AS-IS.
Is Fixing Your House or Selling It As-Is the Best Option? …
There is one main benefit to renovating your house before putting it on the market: your efforts could lead to a higher sale price. Fixed up homes usually attract more potential homeowners with traditional financing methods so you do have a wider pool of buyers that are willing to perhaps offer more as a total sales price but keep in mind that an open market sales price is not necessarily what you net in your pocket after all transactional costs and repairs/updates are completed. If in fact your local real estate market is considered an up and coming or a hotspot of home buying activity, you might even get offers that are well above the list price from multiple parties but it will depend a lot of what the condition of the property is and taste of the retail buyers. The potential to earn more on the sale of your home shouldn’t be taken lightly but let’s consider all of the factors involved with a retail sale versus a cash offer.
Now, let’s talk about a few important factors to consider to see Fixing and Updating is even a realistic option:
- Have you managed house rehabs before effectively and/or know a trusted General Contractor that can get the updates completed within budget and timeline?
- Do you actually want to deal with the construction efforts requiring time, energy and inconvenience for a bit more profit?
- Have you had the house professionally inspected by a licensed inspector to determine the issues that may arise as part of a retail sale?
- Have you gathered enough licensed contractor estimates to have a realistic idea of required budget to fund the repairs and updates required for a retail sale?
- Do you have the funds available and the patience to await the retail market listing, buyer procuring, financing and appraisal process?
If your answer is YES, to all of the questions before and are still comfortable with proceeding with a Fix and Sell project then let’s evaluate the money aspect of the difference between selling it As Is or Retail.
If in fact money is your biggest concern a cash sale may not be for you but let’s understand first what is your NET TO SELLER estimates after a projection with realistic number? … This is what we call the Move On Make Sense Offer Work Sheet (click below to download).
In all probability, you are going to leave money on the table to sell your house to Move On House Buyers for cash. This is the Trade-Off for selling your house to Move On House Buyers. Let me explain. In order to get that extra cash in your pocket, here is what you would have to do:
- Contractor Scope of Work (30 to 60 days) – If the Contractor works out and stays within your budget and time frame.
- Real Estate Agent Staging and Marketing (90 to 180 Days) – In a good market, you can expect to sell a house with a Realtor in 90-180 days and the usual listing fee is 6% paid by the seller to both broker agents. 3% for each listing and buyer’s agent.
- Buyer Negotiations – Expect 3% for negotiation plus 9.5% for commissions and closing costs/concessions from the inspection.
- Holding Costs – Assuming the buyer’s financing does not fall apart and the appraisal process is smooth you might want to consider your current holding costs to keep the property usually for 6-7 months it will cost about ½% per month of the total value of the house.
At the end of the process, there is still market uncertainty to consider but it will be at your sole discretion wether or not a cash offer netting a bit less would help you move on to your next chapter.
As a house buying company we buy houses in Houston TX, without asking for repairs and updates and pay your normal closing costs and ours.
Other Factors to Consider:
The best thing to do is connect with an advisor who can educate you on any tax implications of the different options regarding selling the inherited home.
Some of the tax issues could include:
- Inheritance tax
- Capital-gains taxes
- State or local taxes
- Other outstanding taxes
What are other houses in the area selling for?
If the house is outdated or in disrepair, the best option might be to sell to an investor. While investors buy houses at a discount, they also purchase as-is and do not require repairs. Many, such as Move On House Buyers, will also clear the title and clean the house at no cost to you and your family and pay all normal closing costs. Selling to an investor often makes the most financial sense when selling an inherited house.
Mortgages and Insurance
The house will need insurance since there will be new homeowners.
Is there a remaining mortgage on the house? In most cases, there is enough equity in the inherited house to sell to an investor and still make a profit. In rare cases, people choose not to accept the house and allow it to go into foreclosure if the house is worth less than what is owed.
Clearing the title
Clearing title issues can be a time-consuming process if there are multiple liens on the house or missing heirs.
If you have more question about this process or any other question give us a call and we will help you.
Condition and Disclosures
Be sure to disclose any significant issues with the property such as mold, asbestos, or water damage. While you’re not required to disclose every scratch on the wall, you are legally required to identify any significant problems with the house. Work with your real estate agent to make sure that your listing is transparent while remaining commercially viable.
If you’ve decided to sell your home without fixing it up, be sure to make it clear in the description of the home will be sold “as is” and that repairs are not negotiable. In the same vein, make sure you price the house accordingly. If there are major foundational issues that will cost a lot of money to fix it, knock the price down to reflect that.
If you are not interested in completing repairs or updates to get your property sold on the open market feel free to contact us by filling the form below and we will provide you a Fair Cash Offer. You can also see how we determine your cash offer here.