How To Avoid Closing Costs When Selling Your Home

Even though a lot of homeowners have mortgages that exceed the market value of their homes right now, some people have equity in their home. Some have inherited a home or have simply owned it long enough to have paid the mortgage 'way down, or even paid it off in full. These people are in a good position to think about selling a home AS IS.

Seems like that would be the time to stay put, right? How many of us would love to live in a home that's paid-off, no mortgage at all? Lots of us! But, there are always reasons a homeowner may want to sell and move away. Life circumstances change, jobs change and of course some people might simply want their cash out of the home. Selling a home AS IS can be the fastest and easiest way to turn home equity into cash, and it is an option in all parts of the country.

If you see a light fixture or kitchen appliance marked AS IS on the shelf or a mark-down table at a home improvement store you are on notice that it may have one or more imperfections. Selling a home AS IS puts buyers on notice that you are aware of needed improvements, but that you are not going to make the needed repairs prior to a sale. If your local real estate regulations require every home seller to fill out a Seller's Disclosure Statement you will find that there is usually an option to specify that you are selling AS IS. On a Seller's Disclosure Statement that phrase has legal significance, but for the purposes of this article I'm just referring to what most people understand when they see and use the phrase. This is not a discussion of the legal interpretation at all.

So, let's just assume that you may have a property that has a very low mortgage balance, or no mortgage balance at all. Your property may be in need of a few or even a lot of repairs, including costly repairs, and you may have made a decision that you are not able or willing to make the repairs at all. That is your choice. Obviously you are looking for a buyer who has the motivation to do the repairs himself, or to hire them done. And you are also looking for a buyer who has access to enough cash to purchase the home from you and complete the necessary repairs as well.

If you are wondering who this buyer might be, I can tell you. You are looking for a real estate investor who buys and sells homes as a business. Investors usually have everything in place to make a purchase when you sell your home AS IS, and in addition, they can get a transaction closed so that you get your cash quickly.