Understandably, depending on your circumstances, you may not want to make any repairs to your home. Labeling your home, however, as “sold as-is” or “Inspections are for informational purposes only” may cost you lots of buyers, reduce the amount of showings, and reduce the selling price on your home. Phrases such as these give buyers the impression that something is wrong with the home and the wordage of inspections being for information purposes only takes away a buyer’s right to void the contract due to home inspection findings. Most buyers, perhaps even you, would frown at being tied to a home that is a money pit or has far more defects than they feel comfortable with.
For most REO properties, a buyer is allowed the opportunity to conduct a home inspection and terminate the contract if the results are unsatisfactory to the buyer. If you do not have the upfront funds to cover any repairs to your home but know that you’ll be getting some money at closing, there may be other options. Depending on the amount you have already agreed to pay towards the buyer’s closings costs, you may be able to increase that amount in lieu of making any repairs to the home. For instance, if you have agreed to pay $2,500 towards the buyer’s closing costs on a $150,000 sales contract, you may be able to increase this amount to $5,000 to cover the estimated repair costs noted on the inspection report. Another option is to connect with a contractor who is willing to be paid from your closing proceeds. With this option, you would forward all invoices to your closing agent, who will deduct the repairs from your closing proceeds and issue the check to the appropriate party after closing is finalized. In the latter scenario, it is recommended that you do not have any contractor make repairs to your home until the buyer’s loan has been fully approved.
If, for whatever reason, you are simply unable to make any repairs to the home, your agent can incorporate the best language for you in the contract itself, compared to in the MLS and other advertisements. That way, you keep the pool of interested buyers completely open and, if it’s the right buyer, the buyer may not be intimidated by the property being sold as-is, especially if the buyer is pretty handy anyway.