When you are selling your Colorado home, it is important to know what kind of guarantees you are required to make about the home that you’re selling. Many motivated sellers are interested in a quick sale, for a reduced ‘as-is’ price to avoid the hassle of a traditional listing, bidding, and negotiation. An “As-Is” real estate contract is supposed to save you time and money by avoiding having to do any negotiation about home repairs. In a traditional real estate sale, sellers somehow ending up having to make those repairs anyways. So what does it really mean to be selling your home as-is?
When homeowners list their properties on the market, they typically spend time and extra money to fix major and minor issues in the houses in order to negotiate the best offers. Other times homeowners won’t have the time or inclination and want to sell the house in the condition that it is in. As-Is condition is just that – selling your house with the outdated kitchen, the old roofing, the hole in the ceiling, the broken window, whatever the case may be.
In Colorado, standard real estate contracts come with a number of contingencies upon which the completion of the sale contract depends. The inspection contingency allows potential home buyers to have the property inspected for problems that can range anywhere from sewer line or foundation problems to damaged roofing. ASHI (American Society of Home Inspectors) sets the standard for inspections, which cover 10 major systems and structural areas of residential houses. Click here for more information on ASHI standards.
Picture this scenario; you listed your house for sale as-is in Colorado and you get an interested buyer. Great! But during the inspection period you receive a list of repairs the buyers are requesting from you in order to move forward with the sale. If you can’t or won’t take care of some or all of the list, your interested buyer can back out of the contract. And here you were thinking you were selling the house in its current condition!
What is the Inspection Period?
The inspection period in a contract is a time where the buyer can perform any inspections relating to the house that they want, termite inspection, mold inspection, general house inspection, and determine if there are any major structural flaws in the home. The way it is worded, however, basically gives the buyer an out for anything in the property that they do not find satisfactory. So the contract is titled “As-Is,” but the buyer is holding a lot of the power, depending on the amount of repairs your home needs and the buyer conducting his or her due diligence.
If this information is sending you into a panic, don’t fret! There are companies, like ours, that purchase ugly, broken, or outdated homes for cash. No need to worry about buyers demanding expensive fixes or backing out. This is a great option for homeowners like you who don’t have the time and extra money to fix up your house before listing. We enter into negotiations with you anticipating that we will take care of any maintenance or repairs the property needs after the sale has been completed. How do we earn a living doing this? The offers we make are competitively priced so we hope to make our money back after spending the time and money to renovate these homes–while you get to sell your property quickly and move on with that cash in your pocket. Check out our process to learn about one option for dealing with your problem property.