Selling A House As Is: a 2020 Real Life Case Study
Selling a house as is can seem complex, but working with the right company can make it easy. This is a real-life example of someone we worked with back in 2020. We will call him Pete for privacy reasons. The purpose is to shed light on his story so that it might inspire and give confidence to anyone else who is in a similar position. If you are wondering how to sell your house as is then this article is for you!
Why Pete Was Selling A House As Is
Back in 2020, myself and Will were working on Home Sale Solutions together. Will has since went on to start HappyHome and you can find his point of view in this article he wrote about Pete’s story. Here is the link to that.
Pete found us online and reached out to us about selling a house as is. We set up a time to meet him at the property and the following Monday my partner Will headed over there.
The Property’s Condition
Will took a look at the property and began to understand Pete’s situation and why he was selling a house as is. The following day I headed out to the property to meet him as well and present on offer to him.
When I met with Pete at his house he was very welcoming and offered a bit of history and a tour. I said that I appreciated that and he proceeded to explain his history with the home. The property was a 5-acre piece of land in Loudoun County, VA which is not too far from where we specialize in Manassas.
There is a 10-stable horse barn on the property and the main house was an 1,800 sq. ft. log cabin built in the 1970’s. Here is a picture of the barn:
Pete bought the property in 1990 and lived there almost 30 years. He explained how much he loved it, and the memories he made there, but then we got into the reasons as to why he was looking to sell his house fast, as is.
Why Pete Was Selling A House As Is
A few years prior to this, Pete and his wife purchased a home in Washington state which was where they planned to retire to. Pete was in his 70’s and was finishing up his work commitment here in Virginia while his wife was already living in Washington.
The original plan was to move out there once he retired, and then fix up and sell his home in Virginia the traditional way, with a realtor. These plans had to be sped up however, because his wife ended up getting sick (we did not ask for details although it did not sound good). Pete needed to get out to Washington in order to see her ASAP.
For these reasons, selling his house fast, as is was going to be the best option for him. He explained all of this to me and I let him know that doing a 10 day closing was something we could certainly make happen.
The Property’s Interior
He was very relieved by this and then we began the tour of the home. Pete was a bit of a collector and had accumulated a good bit of belongings over the 30 years he lived at the property. He apologized for this clutter, but I explained multiple times that this is not a big deal at all for us to handle, and we could even assist with lining up movers for him. Here are some pictures of the inside:
Calculating Our Offer Price
After wrapping up the tour of the house, I thanked Pete for his time and let him know how we would calculate the offer price. To do this, you look at the after-repaired value (ARV), which is the price the home COULD be once it is renovated and updated. You then subtract the costs of the renovations and the costs associated with buying the property and you arrive at an offer price.
For instance, if the ARV of the home is $400,000 and it will take $40,000 in repairs, $15,000 in closing costs and $30,000 for the anticipated profit, you would subtract all these costs from $400,000 to arrive at an offer price of $315,000.
Our Offer To Pete
I spent about 30 minutes in my car calculating these numbers, and then went back inside with Pete to go over it with him. Pete was very appreciative of the transparency here because he was dealing with someone else who wasn’t transparent at all, which I’ll get to shortly. If you’re considering selling a house as is then it is very important to understand how the offer is calculated.
His closing costs would be paid by us, and we would also give him a free rent back for a few weeks so that he could take his time with getting packed up. When selling your house as is this can be a very attractive option because it allows you to collect the funds from the sale without having to be rushed to get out of the home.
After answering the questions Pete had, I thanked him for his time and left him to mull over the offer. Your home is likely the largest financial asset owned, so it is very important to take time to digest and think through things like this. Anyone who uses high pressure sales tactics or is not transparent should not be taken seriously in my opinion.
Pete Was Able To Sell His House Fast, As Is
The next day Pete reached out and let us know that he wanted to move forward with our offer. He also told me that there will likely be some trash left at the property and asked if we are okay with that. This is something we encounter on a very regular basis so we let him know it is no issue at all and he can leave whatever he does not want to keep.
We ended up closing in 11 days and Pete was thrilled to be able to go out and be with his wife. This was a huge burden lifted for him and he was now free from this. Pete’s movers ran into some issues that complicated matters and we jumped in to help as well after he had left. For going above and beyond in this way, he sent us a box of wine. This was a first for us and very nice of him!
Many Will Falsely Advertise That You Can Sell Your House As Is
Pete’s story turned out to be successful, but it almost didn’t end up this way. After the dust settled and Pete was moved into his home in Washington, Pete explained how he found us and another group he was speaking with.
In the article written from Will’s point of view, it dives deeper into all of this and there are some audio clips from a real conversation we had with Pete in which he describes the challenges he faced with the other group.
Real Estate Wholesalers
The other group was a real estate wholesaler and was trying to flip Pete’s contract without purchasing the property. An example would be them offering Pete $200,000 for his property, and then assigning the contract to an end buyer for $250,000.
In this example the wholesaler would have made $50,000 which should have been in Pete’s pocket. Lucky for Pete, this is exactly what happened because he ended up going with a true buyer instead of a wholesaler.
It is very difficult to tell the difference between a real estate wholesaler and a true buyer. If you do a Google Search for “sell my house fast manassas” the first several results are all wholesalers claiming that you can “sell you house as is” or “sell your house in 7 days.”
Make sure you do your research like Pete did to ensure you don’t end up working with someone like this. He was not in a situation where he could risk getting dragged through the mud by a wholesaler, and luckily this did not happen.
Pete remains in touch with us to this day and his wife is doing much better (praise God!). If you are in the Northern Virginia area and are looking to sell your house fast, as is then we would love to help in any way possible.
Whether we purchase your home or just point you in the right direction because you’re better off going another direction, we are here to help. Feel free to reach out any time and God bless!