What to know before selling a house “as is” in Boston
Selling a Boston house “as is” can make a lot of sense in certain circumstances. You can sidestep the need to make renovations or repairs. In some cases, you can sell even faster than you would on the traditional real estate market—especially if you sell with an off-market buyer. Selling “as is” can also be a challenge for many homeowners.
Here’s what to know before selling “as is.”
What selling a house “as is” means
Selling “as is” means that you are planning to sell your house without making updates, renovations, or repairs. This can mean you have a house with cosmetic issues like dated kitchen cabinets or beat-up hardwood floors. It can mean your house needs repairs or new appliances. It can also mean your house has a major problem that makes it unlivable.
The key is that you are trying to sell a property without making the kind of updates and repairs that would appeal to the average Boston buyer. A reason to market your house “as is” is to attract buyers who will not expect you to fix the problem or problems in question.
What selling a house “as is” does not mean
Massachusetts is a “buyer beware” state, which means that the seller does not need to disclose very much information to the buyer. Buyer beware, however, comes with a few important restrictions around:
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Lead-based paint: If your house was built before 1978, you are required to disclose the danger of lead-based paint to the buyer. You also need to notify the buyer of any lead-based paint presence on the property that you are aware of—past or present.
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Septic systems: If your Boston-area house has a septic system, you will need to disclose this in writing to the buyer. You also need to have the system inspected within two years prior to the sale.
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Answering specific questions: Massachusetts sellers are also required to answer buyer questions about their house truthfully. For example, if a seller asks you about the age of your roof, you will need to answer to the best of your knowledge. Buyers in Massachusetts routinely ask questions about the presence of underground storage tanks or hazardous substances like radon.
While there are buyers—especially off-market buyers—who purchase houses “as is” despite serious problems, “as is” sales do not allow the seller to be deceptive or avoid making legal disclosures.
Pros and cons of selling a house “as is”
The decision to sell a house “as is” depends on both the property and the needs of the seller. Here are some advantages to selling “as is”:
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A fast sale with a smoother closing: The majority of “as is” buyers are not looking for a house to live in, which means they will see your property as an investment. There’s a good chance that they are buying other property in the Boston area and know how to make the home-buying process fast and convenient.
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Fewer costs: “As is” buyers don’t expect you to paint, stage, or make repairs before considering your house. They are interested in the property itself, not how you present it.
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Simplified negotiations: Most “as is” buyers will make a straightforward offer based on the house’s value to them, rather than ask for seller concessions.
Selling “as is” comes with disadvantages as well. These include:
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A lower sales price: Few “as is” buyers will pay full market value for a house.
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Fewer interested buyers: The pool of “as is” buyers tends to be smaller because most people do not want to take on the burden of major renovations and repairs.
What are Minimum Property Requirements?
Even when selling “as is,” houses are typically required to meet Minimum Property Requirements (MPRs) before the buyer can obtain financing. Meeting MPRs is also a requirement with FHA loans, and most other lenders use these standards as well.
MPRs cover 3 broad areas:
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Safety: Safety refers to issues that can affect the health and well-being of the house’s occupants. Problems like missing handrails, exposed wiring, and an inadequate heating system in a cold region like Boston are just a few of the problems that could cause a house to not meet MPRs.
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Security: Security refers to issues that could affect the people and property in and around the house. For example, damaged doors and missing locks on windows could make the house vulnerable to break-ins. A property with these issues could violate MPRs and not be eligible for financing.
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Soundness: Soundness means that the house should not have structural defects. Missing roof shingles, a chimney that leans, and serious termite damage are some structural defects that might not meet MPRs.
Hazards and nuisances associated with your property may also violate MPRs. Some examples include contaminated soil and being too close to a major road or interstate.
When a house does not meet MPRs, it will be up to the seller to resolve the issue. Repairing a broken door might only cost a few hundred dollars. A major repair like chimney replacement could cost several thousand dollars.
Can you sell a house without a home inspection?
Massachusetts sellers are not required by law to provide an inspection. Most traditional Boston buyers will ask for one, both for financing reasons and peace-of-mind. Plus, many sellers find it easier to be made aware of major problems before listing their house. Since the majority of buyers will conduct a home inspection, significant issues are likely to come to light anyway.
Real estate investors and off-market buyers are less likely to require a home inspection.
Alternatives to selling your house “as is”
The simplest alternative to selling your house “as is” is to prepare it for a traditional sale.
For sellers who have reason to consider an “as is” sale, that might involve being choosy about what to fix. While a house that cannot meet Minimum Property Requirements will be very difficult to sell on the traditional Boston real estate market, one that has cosmetic problems like peeling paint or outdated linoleum might sell. Additionally, you can be upfront about any problems your house has and see if it attracts buyers anyway. You can also offer a credit to the buyer, so the new owner can have the work done after closing.
Reasons to sell “as is”
There are several scenarios where it can be beneficial to sell “as is.” If your house needs major renovations or repairs, selling “as is” can make more sense than hiring contractors and paying for work. Some sellers may inherit a house that needs a lot of cosmetic improvements before it can be expected to fetch market value. Other sellers may be in another city or state than the house in question and not have the means or time to carry out needed improvements.
How to sell a house “as is”
If you want to sell your house “as is,” consider doing the following:
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Price your house competitively: An “as is” house will typically be less appealing to buyers than a turnkey property. Looking at neighborhood comps is always helpful, but there is a strong chance you will need to discount your property.
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Accentuate the positive: Does your house have a large yard or special amenities like a finished basement? If so, you can highlight these in the listing.
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Focus on presentation and curb appeal: If you’re selling “as is” because of a major problem, it can make sense to reassure buyers with an otherwise clean, inviting house. Decluttering, landscaping, and a fresh coat of paint can go a long way.
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Disclose any issues: Most buyers are going to wonder why you are selling “as is.” Being as upfront as possible about your reason is more likely to attract the right buyer for your property’s condition.
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Consider an off-market buyer: Off-market buyers in Boston like We Buy Ugly Houses® regularly buy houses “as is.” Selling with one of these companies gives you the advantages of an “as is” sale without the drawbacks of working with traditional buyers.
Sell your house “as is” with We Buy Ugly Houses®.
Our Boston team buys houses of all types and in almost any condition. Your property doesn’t need to meet Minimum Property Requirements. We don’t even expect you to clean or remove unwanted belongings. We have strong local seller reviews and have been in the business for over 25 years nationwide.
No matter what your motive for selling “as is” happens to be, we would love to see your Boston-area property. Reach out today!
This blog is for informational purposes only and should not be considered legal advice.
