What’s the best way to sell a low end ranch house that has held several surprises. (The surprises have been fixed) I’m getting tons of conflicting advice from friends and contacts that have sold rehabs and even those who have not.
My concern is future lawsuits about some issue I didnt know about but several people tell me that i’ll never get my price if it’s “as is” and that if I disclose what I do know (which I have no problem with) and put on the disclosure that i have never lived in the house, I’ll be fine. I am not incoporated yet and have no other defense against suits.
How should I sell???
You will be disclosing “all known defects” that this property has. Key word: known.
If other issues arise that you were not aware of, can you be held liable?
I’m not completely sure on that one, need others to chime in here.
Assuming the buyer gets an inspection done and you are forthright on known disclosures ( no accusations being made here!) I think you would be in the clear.
I agree that selling “as is” turns alot of people away. Not the way to go if you want to appeal to the largest audience.
Anyone else care to comment here?
I have sold and bought houses as is. All it really means is that you are not going to lower your price to cover any repairs. I always make sure to buy or sell with the right to inspect. If you don’t have an inspection period you have very little way back out of the contract. Your price should be at a discount to cover the price of needed repair and add a little equity. Investors are usually going to be your only bites on the property. You must disclose anything you have knowlage of. If they can prove you knew about something ahead of time and their inspection missed it and you failed to say anything you are liable.
Hope this helped
Hopper
Isn’t every house sold as is unless a warranty is given? Like they’ve said, it only covers known defects. Granted, I read a case study where there was a problem with the basement cracking. The home owner thought they had properly repaired it so they didn’t disclose it. Later it failed and they were held liable for repairs. I think it varies from state to state. Also, if you’re a business selling houses you will be held to a higher standard since you are considered an expert. Any vagueness automatically favors the non-professional.
If moneypit wants to appeal to the broadest cross section of buyers seeking a home I wouldn’t suggest selling as is. The typical everyday homebuyer (not the rei folks on here) will be spooked by the “sold as is” clause. Many potential homebuyers will rule out even considering a home sold that way.
As far as disclosure: It is law here in MI, not sure if thats the same evreywhere.
A home warrenty is a great idea. Once again, that plays right in to the correct buyer psychology , making the potential home buyer feel confident that he/she is buying a solid home. Using a warrenty and being upfront and straight with the disclosure is a good way to satisfy both the potential buyer and your needs to cover your a##.