What is the Purpose of Selling A House As Is
A lot of people are not familiar with selling a house as is. They don’t know what the term means. They don’t know the process behind it. They don’t understand the purpose of it.
Selling a house as is can turn out to be a problem solver. Let’s first define what it means and then discuss a couple of reasons as to why people sell their house as is.
Homeowners usually resort to selling a house as is when they don’t want to deal with the hassles and cost of fixing up a house. Essentially, this lets all buyers know that you are not willing to fix anything or lower the price for repairs.
You might have been given an old house from a relative in their will and don’t want the added stress of taking care of another home. You might have recently experienced the unfortunate loss of your significant other, and now you are expected to pay for the house yourself. These are all examples of when a person might choose to sell their house as is.
Real Estate Investment Income
Interested in becoming a real estate investor? One way that you can have a second stream of income is through real estate investment income. Owning a home and renting it out or buying a home and fixing and flipping it to resale are examples of when you are want to look for a house being sold as is.
The purpose of real estate investing is to find a property for cheap or discounted value, invest some money in added upgrades and either sell it or rent it. This is why you look for individuals selling a house as is. They are usually motivated sellers that will sell their property at a discounted price.
A lot of times, people will be sitting on a gold mine, but they don’t want to put forth the effort to maintain it. Real estate is not for everyone. These are the individuals that you want to do deals with. Real estate investment income is the most common way that people are becoming millionaires.
Real Estate Investment Capital
What is real estate investment capital? In a sense, it is a term for money raised or used towards real estate investment. If you are new to real estate investing, you might have made a bad deal and are losing money on or invested in a small property to start off, and now you want to move on to bigger projects.
Either way, you own a property that you want to get rid of and move on. This might be an excellent opportunity to sell your house as is. This is a way for you to raise some real estate investment capital for your next project. Just as you are selling a house as is, you want to be on the lookout for someone selling their house as is.
Selling Houses Fast
In the world of real estate, time is money. You want transactions completed as soon as possible and move on to the next project. Especially if you are on the selling end. You want that property off your hands and that money in your pocket. Investors are looking for houses being sold as is, want to purchase, upgrade and resale as quickly as possible. Part of their success is selling houses fast.
Real Estate Investment Research
Houses being sold as is are not always the best deals. You have to make sure you do some careful real estate investment research before you “pull the trigger” on a deal. What do I mean by real estate investment research? Making sure the numbers add up so that you are making a significant profit and not losing out. The property might have extensive damage that might not be worth the upgrades.
You can still get a home inspection and get a report on what the inspector finds but if there are faults out of sight (foundation etc.) you may be taking a risk.
If you are going to be mortgaging an as-is property sale you may find that the bank will not appraise the house to the value that you are paying for it therefore not going to be able to mortgage the property.
Another instance is a property having back taxes owed on it or liens against it. You have to take this into consideration because it adds to the cost that you have to put into the house to resale it. Sometimes buying a house being sold as is requires more research than buying a home under normal standards.
I hope that you have a better understanding of selling a house as is. Like anything in life, it has its good and bad related to it. You just have to know and understand if it is the best decision for you. Think about the circumstances, analyzes and research and make a logical decision.