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Understand that buyers may still negotiate
Listing as-is provides no guarantee that buyers won’t try to negotiate savings on their purchase, even on an asking price you felt was already reduced to reflect the home’s condition. One of the best defenses you can have is an agent who takes a hard stance to prevent a deal from going south for the seller.
McKnight often recommends that sellers avoid putting “as-is” in their property listings, as this can lose potential buyers or trigger low offers. Instead, he suggests that the agent bring up the seller’s desire to sell a home as-is during the negotiation process.
“The negotiation is where we shine,” McKnight says. “You want somebody that will be able to negotiate on the seller’s behalf to the buyer’s agent […] sell that home as-is, and make it known that the seller doesn’t want to get involved in any repairs.”
Be aware of the minimum property standards for certain loans
When you place your home on the market, it’s hard to predict if your top offer will come from a cash buyer or a buyer pre-qualified for a home loan.
But if you do end up working with a financed buyer, be aware that different mortgage types (such as conventional loans or government-backed FHA, USDA, or VA loans) have minimum property standards. These standards relate to the property’s overall condition and will play a role in a lender’s willingness and ability to finance a buyer’s loan.
Before properties can be financed, their value and condition are typically examined by a state-licensed, independent appraiser contracted by the buyer’s mortgage company.
If you’re unsure whether your home will meet appraisal requirements, you can start by taking a look at the FHA minimum property standards. If your house complies with FHA, then it likely complies with most other lenders’ requirements.
Prioritize a cash offer if you receive one
On occasion, conventional lenders may finance a fixer-upper property sold as-is, and it’s not impossible to finance a fixer-upper with an FHA loan.
However, if you’re selling a house as-is, especially one that needs heftier repairs, you may want to consider accepting a cash offer if you receive one.
Cash eliminates the lender-ordered appraisal as well as the time it takes to close on the buyer’s loan, creating a faster and clearer path to settlement.
“Cash offers are much easier,” says McKnight. “If the buyer finances and the offer is going to be contingent upon the buyer getting the financing, you always run the risk of the buyer losing their job, or something they wrote on the loan application wasn’t 100% correct, or the lender messes up. With cash, you don’t have any of that.”
