For homeowners wanting to sell their residence without worrying about fixing things up, marketing a house “as is” can be an attractive option. It is often stressful enough to find a new place to live without fixing up your old one.
Colorado homeowners who are ready to let someone else worry about fixing up a property may try to exchange their home for cash with a realtor. This method may sound easy, but there are some things homeowners should know before proceeding this way.
How to sell a house “as is” for cash
Depending on the buyer, selling a home for cash can be a quick process. After getting to know a prospective buyer, all that is needed is to tell them any defects with the house, negotiate a price, and close.
Realtors generally want to make the process as fast as possible. Closing a sale may take as little time as a week.
Colorado disclosure obligations
Both federal and state laws can complicate the sales process. The only federal regulation affecting house sales only applies to houses built before 1978. According to law, if contractors used lead paint in construction, the owner must inform the purchaser. Regardless, it will be helpful to know what types of materials were used to build your home.
Some disclosure obligations specific to the state of Colorado include informing the buyer of:
-Property in special taxing districts
-Property that is part of a common interest community
-Property that has been used as a methamphetamine lab
-Where the home obtains its drinkable water
-Potential or ongoing transportation projects expected to affect the property
-Any information regarding the mining of natural resources
Knowing what to disclose can be one of the most difficult parts for someone trying to market their home. However, the owner can work many of these issues around if selling to a realtor.
Other potential problems
Selling a home “as is” for cash has other problems besides disclosure requirements. For example, prospective buyers may try to take advantage of your homes’ disrepair causing you to lose money, value, or demand.
Because selling a home “as is” implies defects, buyers may hesitate to purchase your home, may try to low-ball you, or may avoid considering your home at all. These factors may make negotiating a price more stressful as you could struggle to get potential buyers to close at the asking price.
Benefits of selling “as is”
Though selling “as is” comes with problems, this method can save you other headaches, such as repairing or remodeling your home. This way may not be the best way to get the most value from your home, but it can be a convenient option for anyone looking to get cash for their home quickly.
Joe Homebuyer is a real estate company that allows people to sell homes for cash in Colorado.