What You Should Know about Selling a House “As Is” in New York

Usually when you’re selling your home, you make repairs and improvements so that it is in the best condition to fetch the highest price possible. However, when you sell your house “as is,” you forgo those repairs and put your home on the market in its current condition, without negotiations with the buyer for any credits to fund any upgrades. Whether you’re in a hurry to unload your property or you simply don’t have the additional funds for renovations, there are various reasons for wanting to go this route. Read on for information about what you should know about selling an “as is” home in New York.

1. The role of real estate agents and real estate lawyers:

Although it isn’t a requirement to have a real estate agent for your home sale, it’s a very good idea because they can offer a lot of support and knowledge, especially with an as-is sale. The agent can help you navigate through home selling procedures and advise you on setting a price. New York requires the participation of a lawyer in all home sales and their duties include drafting a purchase contract, analyzing the title report, and assisting with documentation at closing. 

2. As-is sellers offer significant discounts:

Many buyers are hesitant to purchase because the homes are is disrepair and will require a lot of effort to fix. Thus, the offer will be well below a normal listing. It’s a trade-off: The buyer gets a lower price in exchange for the efficiency of a quick sale. The price that you set is significant because it will determine the final sales price and how soon you get an offer; it needs to be competitive, yet fair to reflect the as-is status.

3. Cash buyers can be good sources

If a quick sale is a priority, consider selling to a cash buyer. This means that the buyer pays with cash and you don’t have to wait for them to secure financing, which slows down the home sales process. You can even list the house as “cash offers only.” The drawback is that the offer will likely be a lot lower than fair market value. 

4. Requirements for an as-is sale: 

New York law mandates that all as-is sellers disclose any known issues. If not, the seller must pay a credit to the buyer. If you don’t want to make such disclosures, then you can just pay a credit without the disclosure. The fee will protect you from liability in most cases. However, this liability protection doesn’t always apply; for instance, if the buyer is in a special relationship of trust with the seller, it will not protect the seller. An attorney can provide clarity on these issues. Sellers aren’t required to obtain a pre-listing inspection or make any attempts to discover any problems that they weren’t already aware of. However, an inspection might be helpful because it could potentially protect you from some liabilities later on. If you’re working with a real estate agent, they can help you gauge whether it’s worth pursuing. You might also consider making some low-cost repairs because they can have a significant effect on your home’s final sales price. 

5. Closing costs associated with as-is sales

As a seller of an as-is home, you will have to pay for a title search, mortgage prepayment fees, real estate transfer tax, attorney fees, and realtor commission fees. This will probably be at least 1-3 percent of the home’s final sales price. 

Get Help with an As-is Home Sale 

Before you sell your home as is, you will want to make sure that you understand how it differs from a normal listing. An experienced real estate attorney can guide you through the process. You can consult with the skilled MOWK Law real estate attorneys to get answers to your real estate questions. Contact us now to get started.