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Selling a House As Is In Virginia

Real estate this year has been a rollercoaster ride. The economy has been progressively worsening, and a housing market reset is potentially on the horizon. There are definitely better times to be in real estate – or are there? On the contrary, this might be one of the best times to sell your house. The bearish market also comes with many opportunities. Let me explain further.

What Does It Mean to Sell As Is?

Say you’ve just received news that a relative bequeathed a house to you. However, you already have a home, or the location of this property is not ideal for your lifestyle. One of the options you may pursue is selling the house without doing any tidying or renovations. This is what is referred to as selling a house as-is. Numerous other reasons may lead to selling a house as-is, including cases where the owner cannot afford renovations.

Rising Interest Rates

Increasing interest rates have been a hot topic recently and have ripple effects throughout the American real estate industry. The Federal Reserve has directed the increase of interest rates as a way to combat inflation. The problem is compounded by the reduction of the GDP over two successive quarters, which is usually the textbook definition of a recession. Due to these rate hikes and other market factors, we have seen reduced demand for real estate, as buyers are discouraged by expensive mortgages. However, this year presents an anomaly. Despite declining sales, the prices have remained steady in many areas of the country.

Take the example of Virginia. Due to the increasing interest rates, the state recorded a low demand for real estate in 2022 relative to the previous year. However, prices of homes have remained strong all over the state. This has also been apparent in Northern Virginia, where average prices for a single-family home stood at over $1 million in April 2022, presenting a prime opportunity to sell your house in Virginia.

Steps Before Selling a Home As Is

The first step before listing your home on the market is taking good photographs. You can never get a second chance to create a first impression. With photos being the first representation prospective buyers get of your house, it is essential to spare no expense when getting the right image to the right eyeballs. Bonus points if you work with a professional photographer. 

Another thing to do before looking for prospective buyers is to set a reasonable price. This will require you to evaluate your property based on several factors. But you need more clarification on local market conditions and access to the right resources.

The Legalities

While the legal requirements for selling a home are nearly universal, some are unique to Virginia. One federal legal requirement to observe is the federal disclosure requirement which covers the application of lead-based paints to the house. Taxes will be expected in this transaction. Two taxes will need to be paid after the sale of the house as-is, and these are the grantors and transfer taxes.

Also important to know is that the buyer will have to pay the title insurance of the house. This comes in two forms; owners’ title insurance and lender’s title insurance. Insurance is a form of protection for the buyer against other claims to the property in succession or unpaid mortgages. The state also demands that sellers disclose sensitive information to a prospective buyer, as required under the Virginia Real Estate Disclosure Act. Some areas covered under this legislation include; 

  1. Whether the property has any pending zoning or construction violations.
  2. Whether the property has defective drywall. 
  3. A buyer beware disclosure. 
  4. The condition of the property.

Using a Realtor

Selling a house can be an unnecessarily stressful endeavor. Taking advantage of the experience and guidance of your local realtors can make the process much smoother. When looking to buy or sell in Virginia, it’s essential to work with experts in the local market. I help my clients handle this complex process, leaving them to focus on what matters most to them. Contact me today to see how I can help you!

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