Whether you’re going into retirement, inherited a property, facing bankruptcy, enduring a challenging divorce, or perhaps just need a quick change of scenery, there are many valid reasons you might need to sell your Little Rock property fast for a cash offer.
But while companies like ours make the home selling experience as fast and painless as possible – no closing costs or agent fees, loan approvals, extra repairs, etc. – there is a range of questions that keep many of a home seller up at night:
Is selling a house “as is” the best idea? Will significant damage or disrepair hurt my chances of selling it? Is renovation or necessary repairs required in order to interest a potential buyer?
If you’ve ever worried about the possibility of selling your home despite major repairs being required like a leaky roof that needs replacement, outdated interiors, or other costly repairs- we’ve got you covered.
Yes, a traditional sale through a listing agent on the open market will mean that major defects like these will need to be addressed in order to maximize appraised value for a prospective buyer-but this is NOT your only option.
In this guide, we discuss everything you need to know before you sell a house “as is” in Little Rock, AR.
What Does It Mean To Sell Your House “As Is” in Little Rock AR?
First, what does “as is” even mean? When you sell your house as is, this means you’re selling your home in its current condition – without addressing needed repairs or improvements.
So whether you have a leaking roof, old electrical, a broken water heater, you leave all these problems to the home buyer. They agree to buy your house in “as is” condition.
An as-is home sale is a challenge when trying to find an interested buyer the traditional way by listing with a real estate agent via MLS. It will often result in a slow market time, and in the end a lowball offer.
However, there is a better way to go about selling a house as is.
Selling to an investment property buyer for a cash offer is actually a lot easier, cheaper, and less time-consuming than listing a home through a real estate agent. Here’s why:
Selling Your Home As Is Saves Money
Bypassing both the listing and buyer’s agent will help you save on agent commissions. When you hire a Realtor to help sell your property, you will be charged up to 6% in commissions.
Apart from the property repairs they suggest you make based on comparable homes in the area, more money will be required for things like staging costs or curb appeal.
By selling a house in “as is” condition to investment property buyers in Little Rock, you skip all these things. Instead, if you’re eligible, you can get an upfront cash offer in as little as a week. Sometimes even faster!
Selling the House As Is Saves You Time
All of the aforementioned costs also come with a time element, even in a seller’s market. It takes time to get the property ready, and also for showings or an open house.
Potential buyers will want a home inspection, and the bank will require an appraisal. Finally, the closing itself will often take at least 30 days to escrow and be finalized.
You’ll also have to deal with the bureaucracy and red tape that is part of the mortgage lending process. Delays in closing can take up to two months, and when someone backs out, you’ll have to go through the entire selling process all over again!
3 Things to Know Before Selling a House As Is in Little Rock AR
So you want to sell your house as is in Little Rock, AR. Now what?
Before we proceed to the step-by-step process, let us clue you in on some very important things homeowners should know about selling a home as is:
- Don’t overprice: Even if you don’t consider your home a major fixer-upper or “ugly house,” you still have to be realistic with your asking price. This is especially true when considering the age of your home and the number of repairs that will be required for a potential buyer to actually put into it.
- Don’t keep defects a secret: Whether you’re selling through a real estate agent or directly to a cash buyer, it’s every homeowner’s responsibility – and a sign of goodwill – to be transparent about the state of their properties. In some states, certain disclosures are actually legal issues. Be honest about major repairs such as black mold, plumbing problems, chimney damage, roof damage, foundation issues, termite infestation, and the like.
- Don’t take anything too personally: If you receive a “lowball offer” that’s outside your desired home sale price, don’t take it as a sign of disrespect or dislike of your personal taste. You can always reject offers that don’t meet your expectations or make a reasonable counteroffer instead.
With all that said, you can avoid all of these above concerns by selling your home as is to the right “end buyer,” such as our company. We are not afraid of defects and have the ability to make a fair offer in its’ current condition based upon the after repair value of the home once we repair it.
How to Sell Your House As Is to the Right Little Rock Company
Do you like the idea of skipping all of the additional time, expense, and hassle of being a seller on the open market?
Ready to sell your home in Little Rock, AR fast and for top dollar?
Here’s how you can find the right company to buy your home as is:
Determine Your Bottom Line
The first step is to be realistic about how much money you need from the home sale after all is said and done. This is often referred to as your “net” price. Again, a traditional home sale will result in receiving approximately 90% of the asking price after paying for agent commissions, price reductions, mortgage deed tax, etc.
For example, a home that sells for $250,000 will only net $225,000 after these costs. Note: this assumes your home is in great shape, and doesn’t need any repairs.
When selling as is, you will need to account for this a bit differently. First, establish what your home would be worth based on comparable homes in perfect condition. Second, subtract the total of every home repair a potential buyer will need to make to the property. Third, subtract your underlying mortgage and any liens.
Confused? Don’t worry, we have experience estimating these numbers for you after doing a quick and basic home inspection. Ask us for a no-obligation estimate today.
Choose The Right Company
There has been an uptick in the number of companies offering to buy houses “as is,” but this does not mean all are alike. In fact, many of the we buy “ugly house” companies lack experience, integrity, and the ability to follow through with the transaction.
Did you know that many of these real estate investor companies won’t actually buy your as is house , but instead try to find another end buyer once it’s under contract?
Be sure you ask the company you plan to work with about how many properties they have bought themselves, and what their plans are if you decide to work with them.
In the case of our company, we are upfront about our plans, the highest price we can offer, and when you will close. We are not afraid of potential clients reading our Google reviews, or by asking questions about our experience.
Myths About Selling a House in Poor or As Is Condition
Unfortunately, there are still enduring myths about selling homes “as is” to cash buyers. Here, we debunk the three most common misconceptions of selling a house in poor condition:
Myth #1: Cash Buyers Just Want To Low-Ball You
Yes, there are cash buyers who are looking to make a quick buck out of a down-and-out homeowner. But that’s not the case for all real estate investors!
Like we mentioned, conduct your due diligence and research potential home buyers before even meeting up with them. Look for folks with good ratings and reviews from real people. Ask how many “deals” they have done with their own money, and for references.
Myth #2: You’re Better Off Repairing Your Home And Selling The Traditional Way
It costs a lot of money and time to follow this advice. Managing a real estate listing requires a lot of “invisible” work. There are also these variables that change every year, from real estate market conditions to shifts in the buyer’s market – making it next to impossible to project how and when you’ll be able to make a sale.
But when you sell your home to a cash buyer, you skip over the long and complicated process and get cash within days. On top of this, you don’t have to worry about the condition of your home, along with the haggling and negotiating that comes with it.
Most cash buyers will take in homes completely as is – no renovations are needed.
Myth #3: Selling To Cash Buyers Will Take Longer
In fact, the opposite is true. When you put a home on the market, you can expect to wait from 60 to 95 days to close the deal. Then, you’ll have to deal with the risk of buyers pulling out at the last minute due to unmet expectations upon appraisal.
Legitimate cash buyers, on the other hand, will close within a week to two week’s time. You will often get to skip the traditional home inspection where buyers come back with a long list of items for you to fix in order to close!
Frequently Asked Questions
1. Is it legal to sell my house as is?
Yes. Selling your house “as is” is totally legal! In Arkansas, there is no state law that requires property owners to disclose every aspect of their property’s condition when selling.
However, seeing as Arkansas is a Caveat Emptor state, real estate agents are required to “exert reasonable effort” to seek out issues with the property. Additionally, disclosure requirements vary by state, county, and even city. Check with your locality to ensure what aspects of your home’s condition must be disclosed.
2. How can I sell my house as is?
While you may be able to sell a property as is through a real estate agent, you may have to go through a long negotiation process with buyers. You’ll likely have to make some repairs and adjustments too after the home inspection to increase the chances of selling to homebuyers needing a property appraisal for their mortgage. On the other hand, selling through a solid cash buyer is usually a lot faster.
3. What is the fastest way to sell a home that needs work?
As mentioned, one of the fastest ways of selling a house that needs work is by selling to a cash or investment property buyer. The process is fairly simple: you complete a form and get a quick estimate on your property’s cash value, wait for the buyer to check your eligibility, receive an offer, and close the deal. Sometimes, it can take as fast as 48 hours to sell your home to a cash buyer!
4. What is the fastest way to sell a house by owner?
Selling a house “by owner” means skipping the process of partnering with a real estate agent and selling on your own. Know this, you will need to understand contracts and real estate law in order to avoid legal issues. And, you’ll still need to pay a buyer’s agent commission in most cases. One of the fastest ways sell by owner but skip the open market is with a cash buyer like Gary Buys Houses.
5. Is it bad to sell a house as is?
No. There are a myriad of reasons why someone would sell their house in its current condition, including facing bankruptcy, short sale, and foreclosure. Selling a house as is – and quickly – can help relieve some of that financial pressure and get you back up on your feet again.
6. Why would someone sell their house as is?
These are some of the most common reasons people sell their homes as is:
- Going through a tough divorce
- Having too much debt
- Failing to pay property taxes
- Liens on the property
- Going through foreclosure
- Experiencing major flood, fire, or storm damage
- Going into retirement
Ready to Talk?
Reach out to Gary today to discuss your situation for free. Learn what we can do to help relieve pressure, and buy your house in its current condition.