My wife and I were contacting contractors when Covid first hit, now my custom built log house is in desperate need of attention what should I do? It’s still difficult to find a contractor who can do the job. Should we sell as is? Or is it better to complete the renovation?
Asked by Anonymous | Marietta, SC| 07-24-2023| 1,235 views|Selling|Updated 2 years ago
Selling a home as-is in Florida means you are not agreeing to make repairs as part of the transaction, but it does not exempt you from Floridas disclosure requirements.
In Citrus County and across the Nature Coast, the standard FAR/BAR AS IS contract is the most commonly used purchase agreement for as-is sales in Florida. Under this contract, buyers have an inspection period during which they can inspect the property and cancel for any reason. The seller is not required to make repairs, but the buyer retains the right to walk away if the inspection reveals more than they are willing to accept.
What sellers sometimes misunderstand is that as-is does not mean no disclosure. Florida law (Johnson v. Davis) requires sellers to disclose all known material defects that affect the propertys value and that are not readily observable to the buyer. Selling as-is protects you from a buyer demanding repairs, but it does not protect you from a post-closing lawsuit if you concealed a known defect. Complete your seller disclosure form honestly, disclose what you know, and price the home to reflect its condition. An appropriately priced as-is home attracts buyers who understand the deal and reduces the risk of a contract falling apart during the inspection period.
Kevin Neely & Kaitlynd Robbins | K2 Sells, Keller Williams Elite Partners
If funds are available to renovate, its a good idea to get quotes on fixing the home and finding out what the time lines look like for completion. Then consider what the market could do by the time the renovation is complete. If its more important to move quickly, then discounting the property to sell in its current condition. If its important for you to get every bit of money you can out of the home then you will want to renovate if it can be done quickly and keep the pressure on them to get it done and maybe even pay a bonus to complete sooner, because the market could change any moment and really hurt financially if it does so.
Something else that should be mention is that if your house is uncompleted and you sell it in "as-is" condition -- the property may not qualify for financing. One of those lending guidelines. This may greatly reduce the Buyers that are able to purchase it and the inevitably the end sales price. Does your area have a Nextdoor.com? If so, maybe post on there for recommendations of local contractors. Best wishes!
Only you & your wife will know the answer to this. It depends on if your home will bring the price you need to be comfortable with the transaction if you sell as is. A good Realtor should be able to help you with comparative market analysis for both as is & after repairs. They should also help you consider the cost of hanging on to the home longer to get repairs done. They may also have some general contractors they can refer you to.
Working with a local real estate agent can guide you on the current market value of an "as is home" or updated home. Any home that looks cared for/maintained will represent well to buyers and will most likely translate into a higher price. Also, a local real estate agent should be able to connect you with a contractor for getting some work done. Selling "as is" can equate to a lower sales price and represents the need for the seller to sell fast.
Hi Eric,
If you have a renovation that has begun (but not finished), like a bathroom partially completed, then I would recommend finishing the project. However, if there are renovations that you planned on doing and never got around to then I most likely would recommend selling at a lower price (as is). You almost never recover 100% of the renovations unless you are doing everything yourself at a high level.
I hope this helps
A local real estate agent should be able to give you a value for the current condition of the home, and another value, if the home is renovated. Usually homes that need repair sell at a greater discount. Example, move in ready home $500k, house that needs $50k in renovations will not sell for $450k instead it might sell for $400k or maybe even less, there is risk and time cost to doing renovations, buyers are not going to just want to take the cost of repairs off the fair market price, they are going to want to be compensated for doing the work with a lower sales price.
