How to Quickly Sell Earthquake Damaged Property ‘As Is’
By Hadar 15th Oct, 2020
If your property has been damaged by earthquake in Christchurch or, if you would rather offload the property and move on than get into re-construction and renovation; or for any other reason, it makes more sense to sell the property ‘as Is’. Numerous real-time scenarios make selling a house ‘as is’ profitable for the owner. There are pros and cons to consider when you are trying to sell earthquake damaged property fast, however, just like any other property deal, there are ways to circumnavigate them.
What is the meaning of selling a house ‘as is’?
In plain terms, selling a property ‘as is’ means to sell a property in its present condition, without any assurances for renovations. The phrase ‘as is’ has gained legal appropriation in many states, when it comes to the purchase and selling of such property. The agreement iterates in explicit terminology that the seller is purchasing the property in full awareness of its present condition. So, just because you can contractually sell earthquake damaged property fast, does not mean you can hide flaws. Sellers are legally obligated to disclose flaws, to the fullest of their knowledge. Should the flaws prove to be more severe than disclosed upon inspection, the buyer has the option to back out of such a deal.
Why should we consider selling a house ‘as is’ in Christchurch?
Property ownership comes with the cost of repairs and renovations. However, affording these expenditures may at times be a no-brainer, for instance, if there is too much work and time input involved, or if the cost of necessary repairs is too much to bear. A lot of property owners also sell their homes ‘as is’ to avoid foreclosure. The lower price compensates for the cost of repairs or whatever kind of flaws the buyer must deal with when the ownership transfers to them.
Potential disadvantages of selling a home ‘as is’?
The first step to successfully selling structurally outdated property or property with natural damages is to accept that one has to settle for a less than profitable price. One of the few disadvantages of selling property ‘as is’ is finding agreeable buyers; the average buyer immediately thinks there is something greatly amiss with a property being sold ‘as is’. If the reason for the ‘as is’ price is visibly obvious, they catch on to any urgency and desperation the seller may exhibit and try to low ball the already-lowered asking price significantly. This may also be a reasonable cause to make minor repairs so that in the big picture, the property attracts potential buyers.
The best way to sell earthquake damaged property fast in Christchurch
Damaged property sells best when you can attract buyers who are fixer-uppers. It is a niche demographic in the overall market. But, most fixer-uppers are usually on the lookout for a property they can acquire at a low market price and then repair and resale, so they are not that rare to find. On the other hand, if you selling to the general crowd, then it is prudent to avoid mentioning the ‘as is’ bit in the initial listing, as the price is suggestive enough. However, you must disclose the conditions of the house after the initial listing, to set buyer expectations and not default home inspections.
Disclosures for selling property as-is
If you want to sell earthquake damaged property fast and honestly, then you can disclose the issues and Property Condition; that includes:
- Structural defects
- Mold appearances
- Termite-caused damage
- Electrical challenges
- Any legality disputes with ownership
Buyers should not come to experience any foreseen issues that manifest later when the ownership transfers to them, unless they are As is where is house buyers like WeBuyProperty.co.nz
Small renovations for improving ‘as is’ property listings
As mentioned above, if you want to attract buyers and not merely offload a house with umpteen number of problems, then you have to perform minor renovations and repairs; these are usually in the range of $1000. These renovations could be anything from lawn maintenance to painting over small sections. Usually, an experienced realtor can guide you on which of these minor renovations your property may need to attract a seller fast and still offer a decent closing price.
Economic uncertainties, and time constraints levied by the value of the house, its location, or the market, in general, are some of the most common situations that incentivize selling a property asset ‘as is’. Sellers looking to offload property ‘as is’ must devise the means to strike a balance between a lower-than-market-price, and savings opportunities for a maximized profit.
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