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Old 02-12-2008, 07:32 AM
 
529 posts, read 1,866,813 times
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I'm thinking about selling my house as-is. If someone wants to buy my house, will their bank finance it at the regular interest rate?

I have a house that I want to sell quickly. I don't want to spend a lot of time and money fixing it up. I still plan to paint it and put in new carpet for show appeal. I was just wondering if I'm limiting the number of people who could purchase my home if it is listed as-is.

I understand most folks are still going to get an inspection done. And I understand that if something major comes out in the inspection, the bank won't finance. But if nothing big comes out in the inspection will the bank finance it as-is? Or will a bank finance if there is no inpsection.

What type of things would a bank not finance? I'm in San Antonio, TX.

Oh yeah, one other question.. is it crazy to have an open house on an as-is property?

Thanks
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Old 02-12-2008, 08:14 AM
 
Location: Nine Mile Falls/Spokane, WA
864 posts, read 2,995,129 times
Reputation: 503
what else is wrong with your house? there are plenty of used homes being sold "as-is". banks don't look at the inspection report - they're looking for appraisal value. certain govt. backed mortgages will have FHA or VA requirements that the property must meet, but they're pretty minimal (no broken windows, peeling/chipping paint, handrails for stairwells, etc.) You asked about holding an open house - I wonder how bad your house shows. If it's priced for the condition, you'll get buyers no matter what - just need to advertise it as a fixer-upper.
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Old 02-12-2008, 09:35 AM
 
529 posts, read 1,866,813 times
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Very interesting. Thanks
Do you mean do not list it as-is and say "fixer upper" instead. Or list it as-is, fixer upper?
Compared to some of the open houses I have been to, I think it might show okay.

Can one hold an open house if there is nothing in it? I don't really have nice stuff for staging; so I was planning on moving everything out first.

Houses similar to mine are listing for about 115K. But mine is a little different from those. I have two exits to my back yard. A side patio door from the living room and a back patio door from one of the back bedrooms. And as far as I can tell, I have the only house in the neighborhood with a screened-in covered patio that was built with the house. I have several fruit trees and a maintenance free concrete fence. A pretty good-sized yard (.15 acres). I don't know if a big yard is good or bad??

So I was thinking about new paint, new carpet, fix up the yard a little and put in othe market as-is for 100K?? Does that sound reasonable??

The house is 1386 SF, 3/2/1 brick front, vinyl siding other 3 sides. Backs up to green belt, not in flood plain.

Since the house is 10 years old, I'm concerned that some things might turn up in the inspection.

Quote:
Originally Posted by WendyK View Post
what else is wrong with your house? there are plenty of used homes being sold "as-is". banks don't look at the inspection report - they're looking for appraisal value. certain govt. backed mortgages will have FHA or VA requirements that the property must meet, but they're pretty minimal (no broken windows, peeling/chipping paint, handrails for stairwells, etc.) You asked about holding an open house - I wonder how bad your house shows. If it's priced for the condition, you'll get buyers no matter what - just need to advertise it as a fixer-upper.
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Old 02-12-2008, 09:51 AM
 
Location: Barrington
20,020 posts, read 14,400,856 times
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Quote:
Originally Posted by shenane View Post

Since the house is 10 years old, I'm concerned that some things might turn up in the inspection.
Selling as is does not preclude anyone from asking for repairs.

If you are concerned that your ten year old home might have some issues, why not invest in a pre-sale home inspection. This gives you the opportunity to make the necessary repairs or disclose the condition, upfront to reduce the likelihood it will bite you during the buyer's home inspection.
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Old 02-12-2008, 10:49 AM
 
Location: Las Vegas, Centennial Hills
2,013 posts, read 4,620,735 times
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As long as there are no mechanical issues, the banks will absolutely lend money on it. They don't really care about paint and carpet, just structure and the mechanicals.
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Old 02-12-2008, 11:02 AM
 
Location: Oz
2,238 posts, read 6,486,407 times
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Shenane, send me a private message and tell me more about your house. I might be interested.
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Old 02-12-2008, 11:14 AM
Status: "It's 5 o'clock somewhere." (set 23 days ago)
 
Location: Mountain Ranch, CA The heart of Calaveras County
6,175 posts, read 11,595,668 times
Reputation: 4950
As long as it appraises, the banks are fine with it.
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Old 02-12-2008, 01:01 PM
 
4,517 posts, read 6,344,826 times
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Quote:
Originally Posted by shenane View Post
Very interesting. Thanks
Do you mean do not list it as-is and say "fixer upper" instead. Or list it as-is, fixer upper?
Compared to some of the open houses I have been to, I think it might show okay.

Can one hold an open house if there is nothing in it? I don't really have nice stuff for staging; so I was planning on moving everything out first.

Houses similar to mine are listing for about 115K. But mine is a little different from those. I have two exits to my back yard. A side patio door from the living room and a back patio door from one of the back bedrooms. And as far as I can tell, I have the only house in the neighborhood with a screened-in covered patio that was built with the house. I have several fruit trees and a maintenance free concrete fence. A pretty good-sized yard (.15 acres). I don't know if a big yard is good or bad??

So I was thinking about new paint, new carpet, fix up the yard a little and put in othe market as-is for 100K?? Does that sound reasonable??

The house is 1386 SF, 3/2/1 brick front, vinyl siding other 3 sides. Backs up to green belt, not in flood plain.

Since the house is 10 years old, I'm concerned that some things might turn up in the inspection.

If you want to move it, I would list As-Is, minor Fixer-Upper and a little TLC. (all the search terms that find quiick buyers) $100K -- very Negoiatable, and if you have them -- "Good School District"

That should start generating "fishing" offers of $50K to $75K very quickly. Be open about the numbers you are getting and let the shoppers bid each other up to what you can live with.
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Old 02-12-2008, 05:11 PM
 
Location: Salem, OR
10,993 posts, read 18,889,531 times
Reputation: 6945
There is a difference between not wanting to nit pick over repairs and major repairs. Lenders want the heating, plumbing and electrical systems in good working order. The house has to have a roof with at least 3-5 years of life and the structure of the house needs to be sound, ie no rotting siding, dry rot, termites, etc. When the appraiser goes out he gives the home a general look over to see if there is any major apparent defect and will note those to the lender.

I agree that if you want to sell as-is conduct a prelisting home inspection and then post it on the MLS with your listing. As-is tends to turn off buyers as they tend to think there is something wrong with the house.

You also need to expect that even if you sell it as-is, that people may still make a repair request. It happens a lot out here, so just be prepared.
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Old 02-12-2008, 05:28 PM
 
14,199 posts, read 26,341,715 times
Reputation: 8357
I generally buy properties As-Is and more than once I had to leave 1 1/2 times the cost of Section 1 items from the Structural Pest Control Report in Escrow until I completed the repairs.

I've found that Lenders generally don't like AS-IS transactions and it is best not to call attention.

On one, the day before the closing, the appraiser received a copy of a Pest Control Report by ordering it from the State. The Pest Control Report was several months old and order by a previous prospective buyer that was not able to close the deal.

I had to agree to a "Hold Back" of funds to cover the repairs on the report...
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