Selling "As Is",
and Disclosure
Not sharing what you know about
your property may not be a good strategy for "As
Is" sales offerings. This article discusses how to disclose
what the term "As Is" means for your property, and
how to use the written disclosure as a highly effective sales
tool.
You have decided that rather than go to the
extra effort of bringing your home into top shape, you are
going to list it "As Is", letting the buyer deal with what
needs done.
 Nothing wrong with that, many people list
"As Is" for many good reasons. Maybe you are a long
way from the property and
cannot manage the project. Perhaps you have had a change of interest,
and don't want to put in the time. You just may not want to
commit capital. Maybe you want to create an atmosphere for
a quicker sale.
The first thought that enters
the mind of someone looking at an "As Is" listing is, "What's
wrong
with
this property?". Don't be offended, it is just part of human
nature. It is best to be prepared to keep any feelings
of doubt from rising.
If your reason is not private, your
first step is to make sure your
estate
agent
understands.
They
are then equipped to be able to counter that feeling as
they explain the opportunities of your listing to potentially
interested parties. Your estate agent is a skilled professional
who
will present your reason in a positive and motivating way,
as well as to make it understandable and logical.
"As Is" listings are very attractive to certain
people. A bargain is often what they are seeking. If the offer
is attractive, almost any repair needed becomes a positive
part of the rationale for why the price is so attractive. If
the price
plus the repairs still add up to
the potential buyer, it will be perceived as a good deal.
In preparing the listing, it is now a legal
requirement in many areas to complete a disclosure
form that itemizes specific disclosures - statements that answer
questions about your legal authority to sell the property, history
of water damage, condition of roof, and the like.
And thinking ahead, if you have disclosed
everything that you knew at the time, it is difficult for your
purchaser to come back saying that they were not told about
a problem they have discovered after the sale has gone through. In the Bahamas, there are presently no
legal requirements for such disclosures. As a seller of a Bahamian
property you may feel that if it is not required then it is
not important, but that may not be so.
It may be helpful to
place yourself in the buyer's shoes when
you
consider
that
a factual statement of the condition of a property is
much appreciated by someone looking at several properties,
and
can tend to distinguish your property from others.
A property
presentation accompanied by a written disclosure
tends to be more
attractive
than
a property
without
a written statement of condition. As a buyer, there is something
that feels good about being told about a lacking, problem or
a defect.
It builds confidence and makes a potential buyer more at ease,
feeling that the information is complete and
accurate. As well, it is so much more comfortable to the buyer
if the information
is offered rather than if the buyer feels they have to request
it.
Usually the list of items on your written
disclosure is not going to be very long. Use straightforward
language, attempting to quantify when possible. A few stone
steps down to the water are broken. How many? Sun and
rain damage to the soffits... how many feet? Older appliances.
How old? Quantities will help a buyer visualize the scope
and help them to begin the mental arithmetic involved in the
repair.
You should not
feel as though you are forced to write a confession. A written
disclosure
is not a guarantee of the property's condition, it is just
a simple statement of what you want the buyer to know about
the property.
As you finish, have a good
look at what you have included, and see if you are being too
hard on yourself. If some items are easy to repair, you may
want to
repair
them.
It is probably better to fix some broken screens than to leave
them on the list and have your property appear run-down from
what may be perceived as lack of care.
Finally, meet with your estate agent and
discuss the written disclosure you have prepared. Things
move quickly these days. If you look at what makes things happen,
inevitably
you
will
see
that it is because the right information is in the right place
at the right time. When your estate agent is armed with all
the facts about your property's actual
condition, this will speed up the presentation
process. It may very well lead to a quicker sale.
In selling your home "As Is", there is no
better tool you can give your estate agent than a written disclosure.
If done well, it will mean a faster, more enjoyable sales process
for everyone involved.
For further assistance in using written
disclosure as a powerful sales tool, talk with your estate
agent and your attorney.
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