Different housing markets have different idiosyncrasies driving them. Sometimes a home may have issues which preclude it from resale. Sometimes there are specific things you’ve got to do in order to move a property. For example, in California, it is mandatory for sellers to inform potential buyers of any “paranormal” activity.
California is very haunted because it’s trendy to mess around with the occult out there; voila! Ghosts. Or inter-dimensional spirits. Or infernal spiritual entities. The point is, this unique feature of California affects the real estate market, and that state isn’t alone.
Your first step in selling a home “as-is” will be understanding local legal requirements. Once you’ve got that out of the way, consider the following six tips.
1. Design A “Non-Negotiable” Price That’s Negotiable
When you’re selling a house “as-is”, savvy buyers understand you may be having difficulty moving the property. Accordingly, if they’re smart, they’re going to try to pressure you to lower the price, even if you say it’s non-negotiable. You know why? Nobody looks at “non-negotiable” as “non-negotiable”. They look at that hyphenated phrase as a challenge.
So understanding this, think like a chess player and get a step ahead of them. List as non-negotiable a price that’s one standard deviation away from what you’re really willing to sell, then allow prospective buyers to talk you down. You may find one who doesn’t even try to negotiate, and get more than expected. Most likely, you’ll land within the range you predict.
2. Seek Specific Buyers – Friends, Family, Favors, Etc.
With any sale, targeted marketing makes more sense than generalized outreach. Keep your finger on the pulse of family, friends, co-workers, and local eccentricities related to sale. A church may need a property for a youth activities center, and cut you a real deal—you never know. Look around locally for ideal candidates, and seek them out.
3. Look Into “Lease-To-Own” Arrangements, Depending On Time
Sometimes “as-is” properties can be ideal as “PIGs”, or “Passive Income Generators”. You’ve got a property that’s just sitting there after you’ve moved, and you can’t seem to sell it. Well, find “rent-to-own” tenants, and until you do, rent out on limited leases to other tenants.
4. Buff Up List Prices With Legitimate Appraisals
When you’ve got a legitimate appraisal on an “as-is” property, you can truly put bold text in the “non-negotiable” field. It’s like finding the blue book value on a car—below X price, negotiation stops.
5. Find Bartering Ground – Trades, Quid Pro Quo
Sometimes you’ve got “as-is” pricing, but a buyer has a compromise which may be in your best interest—a quid-pro-quo arrangement; “something for something”. For example, maybe you’ve always wanted a boat, they’re trying to move one, and they throw it in for a $5k discount. Diverse assets can complete your “as-is” price. Be open-minded.
6. 1031 Exchanges: Profit With Lower List Prices
Something else you may want to look into is called a 1031 exchange. Basically, this is a process by which you can turn the money you make from property sale directly into another property, and thus dodge the associated tax burden. If you’re planning on doing this, you may be able to accept less than you could otherwise, owing to deferred tax loss.
There are a lot of different ways to effectively move an “as-is” property, be creative. Also, just because there are issues with the unit you’re selling doesn’t mean you can’t increase your earnings. With the right angle, an “as-is” property sale could be the best way to sell a house “by owner”.
Look into 1031 exchanges, see what sort of localized needs describe your community, consider quid-pro-quo arrangements, and strategically list your “as-is” property to anticipate buyer trends. Steps like these will help you complete the sale of your property with the most success.