Everything You Need To Know About Selling Your Home As-Is

WHAT DOES IT MEAN TO SELL AS-IS?

An as-is sale means the homeowner is selling a home in its current state. A buyer should not expect the owner to make repairs or improvements before the sale, but rather accept the home in its present condition.

Some potential buyers who see “as-is” house sales consider it a warning of potential issues down the road.

But others, like investors or wholesalers, see it as an opportunity. People are attracted to as-is homes because buyers and purchasers save money. Sellers can also sell the house quickly and avoid unnecessary stress in the home selling process.

WHY SELL YOUR HOME AS-IS?

There are several reasons why sellers list their homes as-is without making improvements or updates. Perhaps they inherited a home and want to unload and liquidate it fast. Maybe there are too many repairs than the seller can afford. Or maybe they just want to move on with their lives and start looking elsewhere for a fresh start. In any case, an as-is sale typically requires a cash buyer, as certain maintenance or repair issues the house would preclude it from qualifying for a mortgage.

REPAIRS YOU OFTEN MUST MAKE

Your buyer’s financing may depend on you fixing certain serious issues. The lender may ask you to pay for electrical or plumbing issues or a new roof before the buyer gets the loan. If the buyer can’t get a mortgage, they can’t buy your house.

 Other repairs that you may be asked to do include

  • Building code violations
  • Structure defects: foundation, walls, support structures
  • Termite damage
  • Bats or squirrels in an attic
  • Leaking roof
  • Outdated or unsafe electrical wiring
  • Water supply issues, such as a well
  • Electrical systems
  • Mold and mildew
  • Broken pipes or major plumbing

WHO BUYS HOMES AS-IS?

Buyers investing in as-is properties should expect to inherit any problems that may come with a home in need of repairs. A buyer must sign a document that makes it clear that they understand they type of home deal they are getting into. However, the buyer still has legal rights to know the same information that the seller knows when moving forward with the sale. As a result, if there are any known problems, the seller is obligated to disclose them.

WHAT TO KNOW BEFORE SELLING YOUR HOME AS-IS

Even when selling a home as-is, sellers are still required by law to disclose any defects about the house. If a seller purposely withholds known information about the issues regarding the house, they may incur legal liability if the problems surface down the road. Disclosable flaws include lead, sewer damage, sinkholes, and flooding. However, disclosure requirements vary state-to-state, so be sure to check local state laws for necessary disclosure information.

In addition to making sure to disclose all relevant information about the property, as-is home sellers should expect to have to negotiate on the price. Even in an as-is sale, the buyer still has the ability to negotiate the final sale price with a counteroffer. As-is does not mean a buyer will never ask for repairs or compensations after an inspection. In fact, this type of negotiation is typical in all home buying processes.

If you’re considering selling your home as-is, here are some tips to help you make sure everything goes smoothly:

  • Obtain a Pre-listing Inspection

An inspection will tell the seller what they need to know about the house before they sell the house as-is. Getting a pre-listing inspection allows sellers to know what to disclose about the house’s condition and learn everything about the house before selling it. An inspection can help sellers decide what improvements and upgrades to make before putting the home on the market.

Additionally, a pre-listing inspection allows the seller to seek estimates for repairs needed so the seller can properly inform a prospective buyer about what may need to be done to the home. Some buyers will find the most expensive estimate on improvements needed as a bargaining chip for the final sale price. If a seller completes their own estimates, they will be in a better position to counter a buyer’s numbers. This will give the seller better negotiating power over the purchase price.

  • Make a Few Home Improvements Anyway

Cash home buyers are spending a significant amount of money on buying a house as-is house payment. The money that remains for repairs may be limited, particularly if they are real estate investors seeking to make a profit on re-selling the home. Making improvements to a home being sold as-is will result in a higher purchase price for the home, and are likely to cover the costs of the improvements in the first place.

Cash home buyers expect an as is home to need cosmetic fixes. With that said, it may be cost effective to do some minor renovations to improve the curb appeal of the home. Also, buyers are usually turned off from purchasing a home with major structural issues, like plumbing or roof damage. If you do consider making home improvements to an as-is home, just do the important home improvements. Common home improvements for as-is homesales include:

  • Replacing the roof,
  • Updating the electric panel,
  • Installing a new water heater,
  • Addressing any pests, mold, or water damage,
  • Repairing pipes, sewer connection, or septic system, and
  • Updating the HVAC system.

If a seller is willing to do these types of repairs, they are likely to land a higher purchase price at closing. This can help you sell a house quickly. Of course, an as-is seller always has the option to skip renovations altogether if appropriate for their budget and timeline.

  • Try Your Hand at Marketing

Marketing will help sell a house quickly. Doing some research and outreach will help you target the right kind of cash home buyer or investor. Make your listing description attractive. Tell the buyer all the great and accurate things about the home and paint them a picture that they can imagine themselves appreciating.

Rather than focusing on the as-is condition of the home, share about the positive aspects of the property. As-is sales are expected to need improvements, so be sure to discuss things like location, lot size, floor plan, and any unique features that may catch a buyer’s eye. Any of these elements can be great selling points.

And of course, make sure the sale price is reasonable. Do some research on the comparable prices are for your market and price your home accordingly. Recent sales of similar homes in similar neighborhoods will give you a good idea of what to price your home at. In an as-is sale, both the buyer and the seller know that repairs will be necessary. So do not try to up the sale price unreasonably – this will only cause your home to sit on the market unsold.

If you’re considering an as-is homesale so that you’ll sell the house quickly, consider working with 8 Day Home Sale. We’ll make a cash offer to buy your house in as-is condition, no repairs or cleanup needed. We’ll even help you move! Contact us today for a free, fair cash offer – we look forward to the opportunity to work with you Maryland, Washington, DC, and Virginia!

Understanding The Foreclosure Process In Virginia And Maryland

WHAT IS FORECLOSURE?

Foreclosure is the legal process in which lenders take back a property that is securing a loan. Foreclosure happens if the borrower has not made a mortgage payment in approximately 3 to 6 months. The foreclosure process is slightly different in every state, but there are two main types of foreclosure: judicial and power of sale.

JUDICIAL FORECLOSURE

  • Lender files a suit in the court system
  • The court will send a letter demanding payment
  • You have 30 days to bring payment to court to avoid foreclosure (extensions are sometimes possible)
  • If you cannot pay, the lender can request the sale of your property by auction and you will be evicted.
  • Any contractors or banks with liens against the property can collect from the proceeds of the auction

NONJUDICIAL FORECLOSURE (POWER OF SALE)

  • Lender serves you with papers demanding payment
  • There is a waiting period during which you can submit payment
  • If you do not pay, your property will be transferred to a trustee
  • The trustee can sell your property to the lender at public auction
  • Any contractors or banks with liens against the property can collect from the proceeds of the auction

FORECLOSURE IN VA

Virginia is a “title theory” state, meaning that the property title remains in trust until the loan is made in full. In most cases, Virginia residential foreclosures are nonjudicial. This means that the lender doesn’t have to go through state courts to foreclose. However, there are also cases of judicial foreclosures. Most of the time, after foreclosure, there will be an auction and the property will be sold. Post-foreclosure redemption periods are rare, but they are possible, and deficiency judgments are permitted. The whole foreclosure process takes about 2-3 months.

FORECLOSURE IN MD

Maryland is a “lien theory” state, meaning that a property acts as security for the underlying loan. In most cases, Maryland residential foreclosures are judicial. This means that a state court issues the final judgement of foreclosure, after which the property will be sold with public notice. Court determined post-foreclosure redemption periods may be allowed, and deficiency judgments are permitted. The whole process takes about 2-3 months.

HOW TO AVOID A FORECLOSURE AUCTION

In some cases, you can avoid getting foreclosed and evicted. It is always worth a try. You can call your bank and attempt to negotiate, or you can work with a reputable real estate company like 8 Day Home Sale to sell your property for its cash value before the foreclosure process begins. If you’ve received notice of foreclosure, there is no time to waste. Get in contact with us today Maryland and Virginia residents for a no-obligation, no-pressure, fair cash offer on your home.

How to Choose the Best Time to Sell a House

Many of us buy our homes expecting to pass it off onto our loved ones eventually, but sometimes, life can get in the way. Maybe our job relocates us, we need to upgrade, downgrade, or every scenario in between. You will need to know when the best time to sell a house is.

To help you get the most value out of your house, we’ve put together this handy guide to show you when it’s the best time of year to sell a house. Learn more and make sure you’re getting the best bang for your buck.

The Best Season to Sell a House 

So, when is house selling season? It’s easy to go with the old adage that you should sell in the spring market, but the area of the country that you live in plays a huge factor. 
Below, we’re going to discuss the pros and cons of the seasons, but you always need to keep your unique circumstances in mind when listing a house for sale.

Selling Your House in the Spring
When does the housing market pick up? For most people, early May is the best month to sell a house. Tax refunds have been saved to make major purchases and the weather has lightened up, it’s more enjoyable for people to browse for homes. Homes also benefit in curb appeal around this time as the flowers bloom and the trees fill out. 
Keep in mind that with the housing market picking up, homes for sale face more competition, and less urgent buyers. Your house may have better curb appeal and gain attention from numerous buyers, but chances are those buyers have a wide variety of equally appealing listings to choose from, making your chances of selling a little slimmer.

Selling Your House in the Summer
Spring isn’t the only time to sell, still, it does offer prime market opportunities. In fact, for some areas, June is the best time of year if you want to sell a house fast.
With summer days come summer daylight hours, extending the time you have to show your home to prospective buyers. People also usually take vacation time this season, allowing you and home shoppers more opportunity to meet. 
Summer also lends a sense of urgency to home buyers. Many need to get into a home before their kids begin school, causing them to make more competitive offers to secure a deal. The summer market also allows you to use the spring sales data to gauge the best listing price.
If you live in areas where the heat becomes unbearable, then the summer months may not be the best time to sell a house. In the summer, you may also find yourself in a seller’s market, as the number of offers on homes increases. You may also have to spend more on making your home show-ready, since this is usually the busiest time for landscapers and contractors.

Selling Your House in the Fall
Fall usually sees a dip in the housing market. However, if you live in an area where spring and summer bring terrible weather or autumn colors enhance your curb appeal, then fall may be the best time to sell a house. 
Even if the prime market is during the warmer weather months, there are some advantages to listing your home in the fall. 
You can easily find yourself in a buyer’s market since many people are settling in for the upcoming winter. Look out to weed out the buyers who are just window shopping. 
By listing in the fall, you also have more access to home renovation professionals and landscapers at a discount, since they’re coming off of larger summer jobs and will be looking for work.
Of course, there is a reason that fall isn’t the prime selling season. The market slows as schools open and the weather begins to turn. Some homes lose their curb appeal as the foliage and plants begin to wither. 
In the fall, you may have to appease more demands due to the decrease in competition between buyers.

Selling Your House in the Winter
Winter, especially December, sees the largest decrease in home sales for most of the United States. The inclement weather is enough to keep most buyers at bay, and even if it’s not, most buyers are spending their money on the holidays. 
However, if you live in a southern state, such as Florida or Arizona, then the winter can be the best time to sell a house.
When selling during the winter months, you normally come across only the most serious buyers. This benefit is two-fold since your house will have significantly fewer competing homes on the market. 
The winter season definitely comes with its drawbacks. If you’re desperate to sell your home, you can be at the mercy of the buyer, making deals and concessions to which you wouldn’t normally agree. You may also have a hard time showing off your beautiful yard if it’s buried underneath a pile of snow.
If you do sell your home, then you have to deal with moving during the coldest time of the year—an unpleasant task, to say the least.

Timing the Housing Market
The season isn’t the only consideration that you have to take into account when deciding to list your home on the market. One of the biggest factors that will decide if you’ll profit or if you’ll falter is your local housing market. 

Selling in a Buyer’s Market
The first thing you want to analyze is your local market conditions, specifically to see if you’re in a buyer’s market. A buyer’s market is when there are more homes up for sale than there are buyers looking for them. 
In these market conditions, you can expect buyers to be pickier, for your home to stay on the market for longer, and for prices to flatline. A buyer’s market can be extremely difficult for home sellers to sit through. 
To make sure that you don’t take too large of a hit to your bottom line, you want to safeguard yourself as best as you can.
First, you want to study your local competition. By understanding what’s on the market in your surrounding area, you can try and leverage any additional features that you have to edge out the competition. If you have a larger yard, a pool, or are closer to a school, then you need to make sure these are highlighted. Whatever little advantage you have over another seller needs to be emphasized. 

Selling in a Seller’s Market
Finding yourself in a seller’s market can be a huge boon. A seller’s market is when there are more home buyers than there are listings. During a seller’s market, you can expect to receive more offers and a chance to sell at the price that you want. 
But just because supply and demand are in your favor doesn’t mean that there won’t be obstacles to selling. You still have to set a reasonable price for your area, and you still have to invest in staging your home.
If you have trouble making decisions, you might have trouble with the multiple offers that you receive to determine which offer is the best for you. You may also have to sell and vacate your home before you’ve established another house. This could lead you into renting a place and having to enter the market as a buyer in a seller’s market.

You Determine the Best Time to Sell!

You might be prepared for the move, or it might be a sudden decision forced on you. But selling your home doesn’t have to be a daunting endeavor. If you want to sell your home quickly and without having to hire a real estate agent, landscapers, and complete major repairs, then you will want the look into a company like us at 8 Day Home Sale.

At 8 Day Home Sale, we offer you a way to escape the need to research the best time to sell a house. With the help of a professional home buyer, selling your home can be a quick, easy and hassle-free task. Unlike the traditional method of selling your house, we buy houses for cash!

Call us today at 301-242-SELL or use our online form to get started! We’ll get you a cash offer within 10 minutes and walk you through the process of selling your house for cash.

5 Reasons Why Selling to a Cash Home Buyer Makes Sense

Is there anything better than cash in-hand? When it comes to selling your house, perhaps not. Selling your home to a cash home buyer or considering cash offers for homes can help you walk away from the closing table quite a bit richer than you were when you sat down. But what is a cash offer, and when is it smart to sell a home for cash?

What is a Cash Offer?

Cash offers for homes occur when a buyer offers a seller cash for the entire cost of the house instead of getting financing from a mortgage lender or other institutions.
Most home buyers must obtain some type of financing to afford purchasing the house, usually in the form of a mortgage. However, a cash home buyer will be able to purchase a home without a mortgage loan or other financial assistance. Cash offers are typically lower than the full market value of the house, but there is a good reason for this. First, cash offers are low risk, as sellers don’t have to worry about buyer financing falling through. Second, most of the reduction in the offer price is offset by the fact that the seller does not have to spend time, money, and resources on selling, upgrading, and negotiating the property.

How Common Is It to Sell a Home for Cash?

Cash offers are quite common. The most common scenarios where cash offers occur are from an investor or investment company interested in a property. In these cases, a homeowner can typically sell their house as-is. However, there are many reasons why a cash home buyer may be interested in your property.
Some home buyers have cash on hand, such as from the proceeds of selling their previous home. Cash buyers are also common in competitive seller markets where financing delays may cause the seller to accept a more enticing offer. This occurs because buyer who can pay cash have an advantage on buying a property over mortgage buyers.
Also, the property is a fixer-upper, a cash sale can help the homeowner sell their house as-is. Cash buyers are also commonly courted if the property is facing a foreclosure, since in these cases homeowners typically must close quickly.

Is Working With a Cash Home Buyer a Good Choice for Me?

There are several advantages to accepting cash offers for homes. First, the average mortgage buyer takes 30-45 days to close, whereas a cash offer may take a week or two. Overall, in a competitive market, sellers will benefit from taking a cash home buyer offer over a mortgage buyer. Buyers with the fewest obstacles are the easiest and most profitable to deal with.
For years now, 8 Day Home Sale has been helping homeowners across Washington D.C., Virginia, Maryland, and Baltimore . We’ve helped every single one of our customers sell their home on their timeline, for cash. If this is something that appeals to you, read on for the five top reasons that selling to a cash homebuyer makes sense.

1. More Flexible and Faster Sale Process

Cash offers for homes are more attractive to sellers because there is no fall-through risk with the purchase and there is a faster closing time. A cash house buyer does not need to obtain a mortgage, as it is implied, they already have the cash for the purchase. Therefore, the mortgage application and approval process can be skipped.
Not having to secure a mortgage also means there is less of a chance that the financing falls through. A mortgage buyer can face financial difficulties, like an employment change or identify theft, which can ultimately derail a sale. Also, the underwriting process for a mortgage takes a month or more, and there is always the possibility that the deal will fall through due to the buyer’s inability to secure a loan during that time. Therefore, mortgage buyers are less reliable and certain.
When you sell a home for cash, there is no mortgage application, documentation, underwriting, or appraisal. There is need for the buyer to sort out the title policy and insurance, provide proof of funds, and sign closing documents, but that may only take a week, maybe two. A buyer with a cash offer will have to supply a seller with proof of funds, which automatically shows the buyer is ready and able to close quickly.
When you sell home for cash, you do not need to enlist a real estate agent. Therefore, you do not have to wait for them to take photos, list your home, or host open houses. A faster closing can put money into a seller’s pocket sooner.
And a closing in a cash offer only involves a settlement statement, title, deed, and a cashier’s check. There is reduced paperwork and lower overall closing costs since there are no lender fees or transactions needed.

2. No Improvements or Updates Needed

In a cash sale, you can typically sell the house as is. When your home is offered in an “as-is” condition, the buyer can take it or leave it. You do not need to agree to making repairs or upgrades to the home before a buyer agrees to sell it. As a result, there are usually only a few, if any, contingencies with cash offers for homes.

3. No Real Estate Fees

Cash offers for homes means not having to pay for a real estate agent’s commission. Typically, commission fees are around 6 percent, which can turn out to be a large sum of your selling price. Although a seller may be accepting less money from a cash home buyer than they would a mortgage buyer, a seller will be saving on improvements, bank fees, agent fees, and interest fees.

4. Avoid Most of the Nitty Gritty

During the home selling process, there are several steps that could go wrong. However, with a cash home buyer, a lot of those make or break steps can be avoided. The deal favors the seller, rather than the buyer, because the buyer knows they are getting a home as-is.

A buyer also does not need an appraisal, as would be required by a mortgage buyer’s lender. Home appraisals are needed by the mortgage lender and are considered part of the cost of buying a home. Therefore, a cash home buyer will usually skip this process. As such, a cash offer can help people sell homes quickly and eliminates the cost and time requires to get an appraisal.

Cash home buyers will end up paying some of the same fees. For example, in either case, a buyer needs to pay an earnest money deposit and pay transfer taxes, escrow fees, and closing cost. This is in addition to the homeowner’s responsibility of purchasing homeowner’s insurance, HOA fees (if applicable), and property taxes.

5. Helps to Avoid Foreclosure

If your home is going to be foreclosed due to an unpaid mortgage, selling your home for cash will help you pay your mortgage and start over sooner. 8 Day Home Sale has helped countless home sellers in this situation, as well as people looking to downsize, sell a property they recently inherited, seniors looking to transition to new housing, and people in countless other circumstances that merit a fast and easy home sale. If you’re interested in working with a cash home buyer, contact us today – we’ll work with you on your timeline, and you’ll walk away from the closing with cash in hand.

Pros and Cons of Selling Your House Yourself (FSBO)

If you’re considering the sale of your house in Maryland, Virginia, Washington DC, or Baltimore, you have lots of questions. Selling your house is one of the largest financial transactions most people do in a lifetime, you want to make sure you make the right decisions and avoid unnecessary costs which eat into your profit. Perhaps you’ve even wondered if you really need an agent to sell your house; after all, you can easily meet potential buyers and show your home…but is that all there is?

Before you decide to try and sell your house without an agent, learn the pros and cons associated with the “go it alone” technique known as “for sale by owner”.

Pros of Selling Your Home as a FSBO

Save Money on Commissions

Selling your home as a FSBO (for sale by owner) will certainly save you the cost of commissions for the listing agent. While all commissions are negotiable, most range from 4-6% nationwide. Typically, half of the negotiated commission is then offered to the agent who finds the buyer. Most FSBO listings still sell to a buyer with their own agent, thus you save only half the cost of commission.

No Strangers in Your Home

By selling your home as a FSBO, you never need to worry about who’s in your home or with whom. You will arrange all showings yourself and will be present for the visits.

Control of the Process

By representing yourself in the transaction, you can control what is communicated to the other party. You control the negotiations at every stage of the process.

Cons of Selling Your Home as a FSBO

Pricing

While overpricing a listing is bad, underpricing the listing is worse. When you are not privy to the market analysis in the MLS (Multiple Listing Service), you do not have the most comprehensive data to use when pricing your home for sale.

Time

Arranging home showings takes time. Not only is it common for buyers and their agents to run late, or early, but you must be there to meet each party.

How to Sell Your Home without a Realtor

The time has come. You have made all of the necessary upgrades, from the new granite countertop to the more visually appealing shower tile in the bathroom. You’ve planted some new flowers to maximize curb appeal, and that clutter that you once had in several rooms is now neatly stored away for another time and place. Now, it’s time to put your home up for sale on the market. Save your hard earned cash by not giving an up to 7 percent commission to real estate agents and their firms, giving you more funds to spend on your new house. Sell your home without a realtor! Here are some tips you can use when you put your home up on the market without having to go through a real-estate agency:

Set your sell price.

Do your research. See what other homes with your size, age and other specifications are going for in your area. Scour the Internet and local listing magazines to establish your price. It’s vital to be realistic during this step. If you ask for too much or too little, you could end up selling your home for less than its worth or waiting a long period of time for your home to sell. This is when you will also decide how you want to accept payments, whether it is direct cash, land agreement, loan, etc. You will also want to think about laws in your area and what you will do during the later negotiation phase of the process.

List your home on the MLS.

The Multiple Listing Service, or MLS, is an extensive guide to all real estate for sale in the United States. If you go through a real estate agency, a realtor will usually do this step for you; however, as an individual seller, you can pay a flat fee of $400 to list your home.

Get the word out about your house.

If no one knows your home is for sale, your research and listing will be in vain. Put up “For Sale” signs in the front yard, leave brochures in key locations within your area, place online ads on Craigslist and in your newspaper and more. Creating a website with your home’s description, photos and other information is also a good advertising tactic when selling your own home. Take some time to really think about what makes your home unique, and highlight those features on your website and other collateral materials.

Host an open house.

This can really work in your favor if it’s done correctly. Before hosting the open house, make sure your home is deeply cleaned, from the floors to ceiling. Scrub the kitchen counters and appliances, clean the bathroom grout, shampoo the carpets… anything you can think of. Make your home comfortable without adding too much of your personal touches. Keep your personal effects tucked away when hosting the open house. The open house is a perfect opportunity to advertise your home and its key features.

We’ll be writing more articles in the future about selling your home without a realtor. Remember, 8 Day Home Sale will buy your home directly without a realtor in 8 days or less.