Selling a House ‘As Is’ in New Jersey
Looking to sell a house as-is in New Jersey? Whether you’ve got a fixer-upper or recently inherited a relative’s home, sometimes the goal is to skip repairs, get a fair offer, and move on.
However, selling a house as-is usually means accepting a lower offer, and it doesn’t always prevent buyers from trying to negotiate savings. Let’s look at how to sell a house in New Jersey, your options for getting an offer, and what to expect from the process.
According to Randi Bennett, a top-selling agent in the Boonton, New Jersey area, who sells homes 24% faster than the average local agent, the number one reason someone would be looking to sell a home quickly is an unexpected death in the family.
Fast facts about selling a house ‘as is’ in New Jersey
| Median sales price in New Jersey | $575,000 |
| Average days on market (DOM) for New Jersey | 33 |
| Disclosures | New Jersey law requires sellers to disclose material facts about the property through the Disclosure of Information on Lead-Based Paint. |
| MLS has a field to mark a listing “as is”? | Yes |
| Is a real estate attorney required? | Real estate attorneys are not considered essential for closing in New Jersey. |
| Real estate transfer taxes? | New Jersey has several realty transfer fees:
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What is ‘as is’ condition in real estate?
As-is is a type of home sale where it’s understood that no improvements will be made to the property. When selling a house as-is, the seller chooses not to entertain buyer requests to complete repairs or provide a credit for fixes.
An as-is sale may also indicate that the functionality and longevity of certain home components, such as a stove on its last legs or an older roof, is not guaranteed.
When selling a house as-is, the property’s general condition should already be accounted for in the home’s purchase price to the best of the seller’s knowledge.
Which types of homes are sold ‘as is’?
Homes sold as-is often need work or are cosmetically outdated. It’s not a label you’ll likely put on a listing in pristine, move-in-ready condition.
As-is sales often attract investors searching for their next flip or buyers seeking a bargain, perhaps on a home in a great location with lots of potential.
According to Bennett, no single home type is likely to be sold as-is over another type, and “all types of homes” are typically sold as-is.
What problems do you have to disclose in New Jersey?
Selling a house as-is in New Jersey doesn’t mean sweeping known problems about the house under the rug.
A good time to fill out the Disclosure of Information on Lead-Based Paint is before listing your home or requesting an offer so that you know it’s taken care of.
According to the document, the seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended before purchase
The form will walk you through documenting what you know about the presence of lead-based paint in the housing.
You’ll also be prompted to fill out information about:
- Whether the seller knows/no knowledge of lead-based paint and/or lead-based paint hazards in the housing
- Whether the seller has provided the purchaser with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the housing
No matter what method you choose to sell your home, you must make these disclosures to the best of your ability. However, New Jersey does allow certain exceptions for sellers whose property is not pre-1978 original construction.
Review your options to sell ‘as is’ in New Jersey
The main options to sell a house as-is include:
List ‘as is’ with the help of a real estate agent
A great real estate agent will assist in listing and selling a home as-is. An agent gives simple presentation tips to improve marketing, helps to set an appropriate price that reflects the home’s condition, and works to find a buyer willing and eager to buy your home in its current state.
Bennett says that she notifies sellers of some repairs that a seller cannot put off, regardless of the home being sold as is.
“There are still certain things, if they come up, they will probably have to address. If there’s mold, it’s hard to do as an as-is sale. It sometimes goes through, but sometimes other issues need to be addressed,” she says.
Sell directly to a cash buyer
Someone needing to sell their home as-is can also work directly with a property investor or house-buying company rather than list, where getting an offer from a limited buyer pool may be difficult.
We Buy Houses operations buy as-is at a discounted rate and generally seek out homes needing significant repairs. These companies can help sellers cash out quickly, and many will cover a seller’s closing costs.
Steps to list ‘as is’ with the help of a real estate agent
Find an agent willing to list the home ‘as is’
Your choice of real estate agent always matters, especially when selling a property as-is. It’s important to find the right match. You’re looking for an agent who doesn’t shy away from listings that need a little TLC and maybe has a strong network of investor connections.
Your agent should also be willing to go the extra mile on marketing. Considering most Americans say they would prefer to buy a move-in ready home, an as-is sale likely has a reduced buyer pool from the start.
Regarding disclosures, Bennett says that there are a couple of things specific to New Jersey that a seller should be aware of.
“You have to do a lead paint disclosure for anything built before 1978. If it’s well water, you must do a water test,” she adds.
Bennett also adds that overlooked structural damage can haunt homeowners later on when looking to sell.
Consider a pre-listing inspection
A pre-listing home inspection is the same as a standard one, except the seller pays for it before listing their home on the market. It may sound like a counterintuitive step for an as-is sale, but getting the inspection results upfront can illuminate any issues that could impact the home’s value and inform an accurate pricing strategy.
If a buyer requests further deductions to the price based on their inspection, you may be able to point to how the estimated cost of certain repairs was already baked into the list price.
Bennett warns would-be sellers. However, there is little value in obtaining a pre-listing inspection.
“If you fixed everything on the list, it’s not an as-is sale anymore; you’ve already fixed it all. The goal of an as-is sale is not to do anything,” she says.
Price to reflect ‘as is’ condition
The median sale price for homes in New Jersey hit $575,000 in September 2024, an 8.5% increase over the year prior.
Bennett suggests as-is sellers price their homes at fair market value “so that you can get a lot of excitement and buzz around your house.”
Need to get an idea of your home’s value? You can start with a free estimate from HomeLight’s Home Value Estimator (HVE).
Our HVE combs public data, including tax records and assessments, and pulls recent sales records for other properties in your neighborhood. Using a short questionnaire, we also factor in specifics about your home, such as the property type and described condition. Input your address, and we’ll give you a preliminary home value estimate in under two minutes.
How Much Is Your New Jersey Home Worth Now?
Get a near-instant real estate house price estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes.
Do ever-so-light preparations
Bennett recommends decluttering and cleaning even for as-is home listings in New Jersey. “[These] are very important,” she says.
Other steps sellers can take include refreshing the front yard, minor touch-ups to the windows or front door, and generally anything that can improve the home’s curb appeal at a glance. You want to be careful not to spend too much time or energy on repairs, but making a strong first impression won’t hurt.
Photograph to show potential
Your home listing warrants professional photography no matter what condition the property is in. A professional photographer will take steps to shoot each room from the best angle, ensure optimal interior and natural lighting, and edit for the ideal brightness and exposure.
A high-quality camera with a wide-angle lens is also essential to showcasing entire rooms rather than half or three-quarters of what’s there. For these reasons and more, professionally photographed homes can help earn homeowners up to a 47% higher asking price per square foot compared to houses marketed without professional photos.
Your real estate agent will almost always arrange for professional photos as part of the listing process.
Highlight the surrounding area
A home’s location will be important to buyers seeking out a home with potential. Mention in your as-is listing if your home is close to any of the following:
- Downtown areas
- Major employers
- Parks and green spaces
- Sports venues and entertainment districts
- Waterfront views or access (ocean or a lake)
- Highly rated schools
- Access to outdoor activities
- Public transportation
Include ‘as is’ in the listing
Unless you explicitly mention that your house is being sold as-is, buyers will have no idea of your intentions with the listing. Other common descriptors mentioned in New Jersey as-is listings include price to sell, fixer-upper, handyman special, or a “call for investors.”
To balance the focus on as-is condition, work with your agent to craft a property description that highlights the best features of the home,
Understand buyers may still negotiate
Listing as-is provides no guarantee that buyers won’t try to negotiate savings on their purchase, even on an asking price you felt was already reduced to reflect the home’s condition. One of your best defenses is an agent who takes a hard stance to prevent a deal from going south for the seller.
Be aware of minimum property standards for certain loans
When you place your home on the market, it’s hard to predict if your top offer will come from a cash buyer or a buyer pre-qualified for a home loan.
But if you end up working with a financed buyer, be aware that different mortgage types (such as conventional or government-backed FHA, USDA, or VA loans) have different minimum property standards. These are standards related to the overall condition of a property which will play a role in the willingness and/or ability of a lender to finance a buyer’s loan.
Before properties can be financed, their value and condition is typically examined by a state-licensed, independent appraiser contracted by the buyer’s mortgage company.
If you’re unsure whether your home will meet appraisal requirements, you can start by taking a look at the FHA minimum property standards. If your house complies with FHA, then it complies with most other lenders’ requirements.
Prioritize a cash offer if you receive one
On occasion, conventional lenders may even finance a fixer-upper property sold as-is, and it’s not impossible to finance a fixer-upper with an FHA loan. However, if you’re selling a house as-is — especially one that needs heftier repairs — you may want to consider accepting a cash offer if you receive one. Cash eliminates the lender-ordered appraisal and the time it takes to close on the buyer’s loan, creating a faster and clearer path to settlement.
from HomeLight Blog https://www.homelight.com/blog/selling-a-house-as-is-in-nj/
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