Should I Sell My House As Is?

Ultimately, achieving a fair price for your property comes down to appreciating the position of the buyer who will have to incur the expense of bringing things up to standard. Yet at the same time, you don’t want to set things too low and have “seller’s remorse” down the line.

It often comes down to finding out where the balance lies and taking time to understand the market.

Here at Property Solvers, our estate agents frequently propose a “price to entice” model to our seller clients. The idea is to pitch the sales price low (but not too low) so that multiple buyers express interest.  The overall aim is to create a competitive bidding environment.

It’s worth understanding that the estate agent industry at large is well known for overvaluing properties to win business.

We often see sellers encouraged to push the asking price too high from the outset which results in months of properties sitting on the market. Moreover, unsold properties are often (unjustifiably) labelled as problematic.  This can result in price drops that could have been avoided altogether from the start.

Fortunately, these days it’s never been easier to get a fair idea of the current property value using a variety of online tools that are completely free to access.

As a side note, if you’re lucky enough to be selling a house that’s considered highly desirable and rarely comes to market, you may find buyers are willing to offer a higher (perhaps even above the asking price).

Added to this, it’s worth checking if there’s any development potential. Say, for example, other properties on your street have had back or upper extension works done or there are other planning “angles” that could add significant value in the future.  If they’re reasonably confident about the possibilities, buyers may be willing to pay a premium.

Decent estate agents with your best interests at heart will fully understand the previous two tips whilst being able to navigate the common pitfalls associated with properties sold “as is”.

An experienced agent will also have crucial negotiation skills focused on handling the unique challenges presented when dealing with “as is” home sales.

Check the reviews and make sure the office is well run (perhaps by testing it yourself before you sign the contract). Also ensure that the sales progression team will keep you constantly updated right up to the point of completion.

As well as the usual property portals (Rightmove, Zoopla, On the Market etc.), make sure the estate agent publishes your home as is on the lesser-known sites.  These include Home.co.uk, The House Shop and One Dome – where cash buyers frequently search for opportunities.

Check through your listing and highlight anything that’s been missed – it’s very easy to change. Don’t be afraid to ask for better photos if you’re dissatisfied.

In addition to attractive “For Sale” boards and other offline advertising strategies such as physical brochures, decent agents are using “walk through” videos, Augmented Reality (AR) tours, targeted (paid for) messaging and search engine optimisation to get an extra edge.

The agent you decide to instruct should also have a strong social media presence. Also check that they have a solid network of active investors and serious potential buyers looking specifically for properties like yours.

Under the Consumer Protection from Unfair Trading Regulations 2008, sellers are legally required to disclose known issues with a property sold “as is”. Failing to inform of any problems with the property could lead to legal repercussions down the line.

You will be required to complete the Law Society Property Information Form (TA6) shortly after the sale is agreed. This document is provided by the seller to the buyer’s solicitor and contains essential details about the property, including any physical defects or legal questions.

During the initial stages of the transaction, most solicitors will specify that the property will be “sold as is”, that no repairs will be made and what constitutes acceptance of the home’s current condition.

Selling a house “as is” does not mean that you should not pay any attention at all to it before putting it on the market.

For instance, it can be well worth booking a clearance company or “man with a van” to remove any old furniture and clutter. Other sellers we’ve worked with “whitewash” the walls to brighten the property up somewhat.

The overall idea is to clear up space so that interested buyers can envision what they can do with the property.

One of the downsides of an open market sale is the lack of certainty. It’s estimated that 1 to 3 properties sales collapse in the current market.

Even when selling as is, potential buyers will often approach the transaction with caution and may often play games. Some expect to negotiate, for example, after a survey report has come back.

For this reason, auctions remain a popular option for “as is” properties.  Sellers are attracted the extra level of security that comes with the fall of the hammer (or gavel). Indeed, with traditional auctions, contracts are exchanged and the buyer has to immediately pay a 10% deposit (of the auction sale price). This means that the chances of a sale falling through are very slim.

At Property Solvers Auctions, we typically advise selling at between 85 and 90% of the genuine market.  Our fees are typically the same as using an estate agent.

Yet, with the property selling process through auction typically taking between 2 and 3 months, another option is to use a house buying company. Although you may have to accept a lower price, experienced operators (like ourselves) can guarantee to buy properties “as is”.  We’ll complete in as little as 7 days with no estate agency or legal fees to pay.

Be careful of the quick sale firms that make cash offers only to reduce the purchase price during the selling process, often at the last minute. Here, make sure that you check their proof of funds and that they will not be using external finance. You can also request a formal letter that confirms that there will be no unexpected reductions.

If you receive a lower sale price (even from a cash buyer), don’t be afraid to immediately reject it. It’s very common for interested parties to start at a base price and work upwards.

Remember also that buyers may be overly negative about your property’s condition as a negotiation technique. Whilst initial offers may be lower than expected due to the perceived risks, remain firm on your bottom line.  This is especially true if you feel like it’s justified based on your research.

Communicate upfront that you will not entertain repair after the sale is agreed upon. This helps filter out less serious prospective buyers early on, saving time and effort later down the line.

After agreeing a price with the buyer, the estate agent should check the following:

• That the correct finances are in place and the sale is proceedable. This includes confirmation of who the buyer’s lender is and requesting a valid Decision in Principle (DIP) / mortgage offer (in the last 2 months)
• That the buyer’s deposit matches with the mortgage lender’s Decision in Principle.  In other words, the deposit + mortgage loan = the sale price of the property
• With cash buyers, ensure that there are proof of funds in place.  Estate agents would usually request a bank statement in the last 3 months
• The buyer can afford the Stamp Duty Land Tax (Land Transaction Tax in Wales or Land and Buildings Transaction Tax in Scotland) on completion day alongside the other fees involved.

Crucially, look for proactive buyers and avoid those who you may feel have financing challenges during the transaction.

Work with a good conveyancing solicitor with a proven track record of dealing with fast sales (feel free to email us at info@propertysolvers.co.uk for some recommendations). They will have no objection to pushing the transaction forward on your behalf.