Is It A Good Idea To Sell My House As-Is? 2024 Guide
"Pete, is it a good idea to sell my house as is, considering the current economic conditions today?" This is a question prospective homeowners always ask cash buyers like myself, and in this article, we'll expand on when and why selling as-is might be a smart choice.
Statistically speaking, it's complicated.
Even though it's still a seller's market, fewer buyers are confident that they can afford the mortgage payments. This is because even though home prices have steadily grown over the years, mortgage rates are still hovering around 6% (as of October 2024).
This can make potential buyers put off purchasing their dream homes. However, if you decide to sell your house in these market conditions, you'll still get some offers.
This is because if housing inventory remains low, it can keep buyer demand high - and in turn- keep home sales prices up.
When Do I Sell My House As-Is?
Here are a few factors to consider and help you decide when is the right time to sell:
Low Housing Supply
In this housing market condition, you can be more confident as a seller about what you feel your home is worth. It's basic supply and demand; if there are more prospective buyers than there are available homes for sale, you can command a higher purchase price. Simple as that.
Not only do buyers have less pressure on prices, but they also have less legroom for financing contingencies. They are also more than willing to make concessions to win over the property from you. The motivation to purchase increases as buyers are aware that good properties don't linger on the market for long.
Low Mortgage Interest Rates
Selling your house during this time is a good idea since lower mortgage interest rates help you save more money when buying a house.
If you think about it, low mortgage rates function as a "double-edged sword" for you since they create a LOT of buyer demand. Imagine if the 2.65% 30-year, fixed-rate mortgage rate in January 2021 suddenly came back; everyone and their grandma would want to get in on that action.
So while you may sell your home in a hot market, you'll face stiff competition from other active buyers who want to take advantage of that rate. What you can do to circumvent this issue is to get pre-approved for a mortgage, sell first, and then buy later during the winter months.
In my experience, many sellers close during the early summer months. This is because buyers don't want to look at homes for sale in harsh weather and deal with relocating during winter. Buyers with kids also want to move in before the school season starts.
Increased Property Value
One great bonus of a strong seller’s market is that your home’s value may have increased with demand. If your home appraises at a higher value, consider cashing in on your home equity by selling. Depending on how much your house has increased in value and how much equity you’ve built, you may make a substantial profit selling while homes are still in high demand.
Last but not least, selling at these current market conditions may help you sell your house for a higher sale price. Since you're in a fairly strong seller's market, your property value may have increased with demand. If you have built up enough home equity, now would probably be the best time to sell and make a lot of money while buyers are willing to pay your price range.
If you want to maximize your ROI, you could also increase your home's curb appeal before selling. Easy quick fixes would be adding potted plants or flower boxes near the entryway or tidying up the lawn. However, if you want to commit a bit of effort, sprucing up the exterior walls with a fresh coat of paint is the way to go. Avoid going for fixes that could
Some fixes could be more beneficial to avoid repairing than actually doing them since they can either hurt your ROI or drag on the home-selling process.
Sell Your House As-Is With Pete Buys Homes
Now, answering the question "is it a good idea to sell my house as-is?" Yep! It's a good idea to cash in if any of these factors are present:
- There's a high housing demand and not enough supply to go around
- Low-to-moderate mortgage interest rates
- Your home has appreciated in value and racked up a significant equity
Again, these are just tips from a seasoned real estate investor like myself. If you have an investment property you'd like to sell as-is, let's have a look at it. Contact us today, and we'll strike a deal regardless of current house conditions or your personal situation.