Home prices in Colorado are on the rise. It’s good news for not only regular home sellers, but also those looking to get distressed properties off their hands. Despite the economic turnaround that has boosted the property markets across the U.S., there are about 14,230 vacant homes in Colorado, according to a recent survey. Of those, 7,214 are vacant with open loans and 595 are deemed vacant ‘underwater’. Eighty five homes are vacant and in foreclosure, or zombies.
If you are planning to sell a distressed property in Northern Colorado or anywhere else for that matter, your biggest worry would be its condition.
As is the case with most distressed properties, your home may be in poor condition. You must be wondering who will be interested in buying your home when there are cracks in the ceiling and facets leak. You must also be planning to spend lots of money on major repair before putting the house on the block.
But here is a word of caution for you: If you are inexperienced with renovations, you can end up spending more money than you can make by fixing the property.
Before taking any such drastic step, what you need to understand is that no matter what condition your home is in, you can sell it quickly and for top dollar.
Well, may be regular buyers looking to move into a house after buying it won’t make an offer on your home, but you can sell it to real estate investors ‘as-is’ – that too without spending any time or money on renovations or repairs.
But what exactly does “selling a house as-is” mean? Well if you are selling a house as-is, you’re selling the home in whatever condition it may be at the time of the sale. In the seller’s disclosure form, you will clearly state that you are selling the house as-is, eliminating the possibility of being held responsible for any liability with regard to repair costs.
When selling your home as-is, you should focus your marketing strategies on targeting real estate investors because buyers from this segment close home deals quickly. The majority of investors don’t rely on mortgages to finance their purchases. They’ll pay you cash and try to get through the closing process as quickly as possible. Investors can close the deal even within a week because their offer is generally not contingent upon the approval of a mortgage, sale of their existing property or other such terms or conditions.
You can save money and time
Some renovations and/or repairs can keep you busy for months which can further delay your home’s sale. Besides, there is no guarantee that if you carry out expensive repairs and renovations for your house it will fetch you more money. You might spend several thousands of dollars and still fail to recover all of your costs when selling. In some cases, it is possible that if you try to add the cost of renovations to the value of the house, it would end up being overpriced, hence forcing you to lower the saleprice. However, if you fail to repair some major defects of the house, like a collapsing roof, it might limit your chances of getting a buyer.
So don’t worry about the condition of your house. Just keep in mind that many real estate investors are out there willing to buy your home irrespective of its condition. Actually, they are the answer to your question – “should I sell my home as-is?”