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Zillow recently announced that it's stopping it's "iBuyer" program, which puts an end to their venture into the house flipping business. So why couldn't Zillow, the largest & most well known real estate tech company, find success in flipping homes?
There’s a lot of chatter out there right now about the housing market and what to expect over the next few months. Below I'll share where I think the market currently stands and some things for prospective buyers and sellers to keep in mind.
Attorney review is the first critical period of any real estate sale.
It is the period AFTER the agreement is signed when buyer and seller's attorneys review the contract and make any necessary changes, additions, etc. Maria needed to sell her home in Union FAST. Her plan was to use the cash to buy another home further south by the beach. She found a great deal on a cute home by the water and she knew it wouldn't last long, so she'd have to move quick.
WHAT IS AN AS-IS SALE?
An "as-is" sale in real estate basically happens when the seller doesn’t want to make any repairs or give the buyer any credits or concessions. It acts as a shield for sellers to protect them against giving up any money later on during the inspection period It also relieves them of the responsibility to make repairs, should something serious come up on the home inspection. The problem is that an as-is sale usually not compatible with most buyers if they are using mortgage. That's because even if the buyer accepts the condition of the house as-is, the buyer’s lender may request repairs as a condition for the loan, and most buyers are advised against spending money on repairing a home prior to taking ownership of it. That's why most as-is properties are sold to cash buyers. Even still, just because the buyer is paying cash doesn't mean the transaction is truly an "as-is" sale. A REAL as-is sale happens only when the buyer agrees to: #1 Waive all rights to inspections or forfeit the right to cancel the contract because of a home inspection issue, and #2 Incur the cost of obtaining all required town and state occupancy and fire certificates, permits etc. Only when these 2 conditions are agreed to and enforced is a home being truly sold "as-is. This means that the buyer cannot back out of the contract no matter what he/she happens to find wrong with the home. Typically, only seasoned investors and risk-takers will purchase a property under those conditions. WHEN TO SELL "AS-IS" Not every property is a good candidate for an as-is sale, and because as-is homes have lower value, it's not always a good idea to sell a home this way. However, there are cases when selling “as-is” is appropriate. For example: If the home is an estate, if it’s been vacant a long time, if it needs major repairs, bad tenants, divorce, or any situation where the owner is willing to take a reduced price in exchange for a quick, hassle-free transaction. But remember that if the home has been updated or is in otherwise very good condition, selling “as-is” is not really an advantage. |
AuthorThis blog is to provide practical information and useful tips to home owners & sellers. Archives
March 2024
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