What to Know When Selling a Home "As Is" in Hawaii
From beachside views to mountainside dwellings, Hawaiian real estate properties vary greatly in price and appeal. Homeowners selling an existing residential property may have the desire to list their home for sale using an “as is” clause - meaning that the seller is selling the home in its current condition and will not make any repairs or give the buyer any credits to fix it. Whatever your reason for trying to sell a residence as it is, consider your rights and possible risks when posting a home in existing condition.
Short Sale For Health or Finances
So why would a seller want to list their home without making any changes? In many cases, “as is” clauses are used when putting short sale houses on the market. Individuals looking to sell their home using a short sale may be doing so for one of several reasons:
· Avoiding bank foreclosure
· Sudden health problems
· Job relocation
Cashing Out an Inherited Property
Another common reason to sell “as is” occurs after inheriting a property. If you have been fortunate enough to inherit a residential property in Hawaii, you may desire to sell it to get-back the money that it is worth. Selling an inherited property can, in some cases, be difficult for the seller when it is tied to cherished family memories. Other family properties may require a listing by someone who is located far away or doesn’t have time to invest into updating and staging. When coming into a property unexpectedly, many sellers wish to leave the home in its current state.
Unmotivated to Update
For those sellers who aren’t found in either of the above categories, don’t feel dismissed. Home renovation is no easy task for the average property holder. When it comes to listing your Hawaiian residence, updating the house in advance can take a toll on already sparse funds and energy.
Additionally, it is very likely that your future homebuyer will invest their own money in making home improvement efforts. In fact, 53% of homebuyers undergo a home renovation project within the first 3 months of buying. If you feel entirely unmotivated to hire a contractor or DIY, that’s okay. Consider the benefits and rules for listing your place “as is”.
Benefits of Using an “As Is” Addendum
What does it mean to sell a property as it is? When marketing a property with the term “as is” in the contract, the buyer is agreeing to purchase the existing property without any further repairs or updates. The property will simply sell in its current condition. The benefit of including this addendum is in protecting the seller against warranting anything on the land or within the walls of the home.
Exceptions to the "As Is" Addendum
While the owner does have the right to list their place in its present state, some exceptions do apply. By law, the seller still has an obligation to disclose any known dangers or concerns they are aware of about the property. A buyer is always entitled to have an inspection of the residence done before the closing period ends. In order to be more successful in your home sale without updating, you may want to provide a home pre-inspection to display honesty and transparency.
If you are considering the sale your home without investing your own time and money into updates, you will need to use great marketing techniques to get the best value. At Own On Kauai, we can direct you in the process of selling your existing Hawaiian real estate.