Selling a House As Is in New Jersey (NJ): 8 Questions You Must Ask

After registering record levels in June 2022, the New Jersey housing market has started showing signs of cooling. Price drop in the subsequent months combined with decreasing growth rate may soon turn it into a buyer’s market. To attract top dollar for your property, sell your house in New Jersey as-is asap.

👉 Get Maximum Cash Offers for Your As Is Property: Major cash buyers, including Opendoor and Homevestors, have submitted offers on Houzeo properties. An MLS listing via Houzeo.com gives you maximum exposure. List NOW!

1. What Does it Mean to Sell a House As Is?

Selling “as is” means putting your house for sale in the existing condition, without any upgrades or improvements. “As is” home buyers know you will not make any repairs, even based on the home inspection report.

For instance, a defect is found in the property’s HVAC system during the inspection. It would cost $1,800 to fix. In a regular real estate transaction, the seller would either fix the defect or waive off $1,800 from the final sale price. But as an as-is home seller, you won’t indulge in any repairs. The buyer has to accept the property as it is.

2. Why do People Sell Houses As Is?

People under the following circumstances sell their homes as-is:

You Cannot Afford to Make Any Repairs

You may not have enough dollars to finance the repairs. Selling a home in New Jersey in itself is an expensive affair. There are several costs like real estate agent commissions, settlement agent fees, notary fees, etc. involved. Repairs combined with staging homes would only burden sellers further.

For example, it costs between $16,000 to $37,000 for kitchen remodeling in New Jersey. By listing your house as is, you skip such expensive repairs and upgrades.

» Cost of Selling a House in New Jersey: Everything You Need to Know

You Want to Relocate ASAP

You may be looking to sell your house fast and move for a job. Home sellers spend 2 weeks to a month marking repairs, which can delay your relocation process. In such a scenario you can save about a month by skipping repairs and selling as is.

» Sell Your House Fast New Jersey: Check out the quickest ways to sell your NJ home

You are in a Financially Difficult Situation

People go through tough times and are in urgent need of cash. By selling their homes as-is it is very likely they will attract cash home buyers like HomeVestors. Though cash buyers give 55%-70%  of your property’s “After Repair Value (ARV)”.

You Want to Avoid the Stress of an Inherited Property

The demise of a loved one has left you and your siblings in possession of the property. But it is in torn-down condition and you all stay too far to monitor repairs. To avoid future tussles and headaches, you may choose to sell the property as it is and book your profits.

» Selling an Inherited House in New Jersey: Discover how to Sell an Inherited House in NJ

3. How Much Do You Lose Selling a House As Is?

The amount of money you lose selling “as is” also depends on the property’s location, and condition.

For instance, there are fixer-uppers in Essex’s hot seller’s market listed for $998,000, $229,750 less than the median home value. Whereas, in Fort Lee, NJ, a house of similar acreage is listed for $300,00, $345,500 less than the median value.

Whereas, if your house is in an extremely distressed condition, there are chances you may attract offers as low as 30%-50%. So, a house worth $475,000 might sell only for $230,000.

✍️ Pro Tip: If your house is not in worn-out condition, opt for iBuyers. iBuyers are companies that will make instant cash offers and close the deal within 24 hours.

Why Houses Sold As Is Sell for Less?

Houses sold “as is” sell for less due to two reasons:

• Home sellers do not invest in repairs and
• As is Homes mostly sell to cash buyers.

Say, you are selling a house as is in New Jersey that requires a roof replacement worth $5,000. The potential home buyer has to bear $5,000 out of their pocket. Thus, an as-is home buyer has to spend time as well as money on upgrades and repairs. The buyer would deduct this amount before making an offer.

Home owners selling as is usually are in desperate situations and attract lowball offers from cash buyers and investors. Cash home buyers are known to make cash offers as low as 30% of the home’s fair market value.

4. What are the Pros and Cons of Selling As Is?

✅ Key Benefits of Selling a Home As Is:

• You do not Deal With Repairs: Waterdamaged kitchen countertops, dripping faucets, or broken roof – repairs are not your concern. The flipper or investor buying your house as-is will spend their time and expertise making the repairs.
• Inspection Bargaining is Easier: Home sellers on average have to let go of $14,000 in inspection bargains. In an as-is sale, you can set an appropriate discount beforehand and communicate to the buyers you are not willing to negotiate further.
• You Reach the Closing Stage Quickly: Saving your time in repairs, you can list your property for sale directly. Assuming you find a buyer who has access to a lender for a distressed property, you can reach the closing even earlier.

❌ Key Drawbacks of Selling Your Home As Is:

• You get Lesser than the Fair Market Value: As stated earlier, you will likely sell to a cash buyer. Cash home buyers will not offer more than 50%-70% of the fair market value, or even lesser.
• Buyers make Negative Assumptions About “as is” Property: Buyers assume your property has some serious defects, which may not always be true. This in turn affects the offers your house attracts.
• Buyers may Face Challenges in Securing Mortgages: Lenders usually withhold from financing properties having structural or safety issues. If you are in luck you might find a buyer using an FHA loan.

💡 Fact: The FHA 203(k) loan enables home buyers to finance a house in a need of repairs. For the FHA loan approval, the property should meet a minimum set of requirements.

5. Can You Sell a House As Is in NJ?

Yes, you can sell your house in New Jersey as is. The NJ Realtors’ Standard Form Real Estate Sales Contract clearly states that “Buyer acknowledges that the Property is being sold in an “as is” condition”. This means the NJ real estate contract is by default an as-is home sale contract until the home seller agrees to make repairs at their expense.

» Sell Your House Fast New Jersey: Know How to Sell Your House Fast in New Jersey and for the Most Cash!

6. Should I Sell My House As Is in New Jersey?

We do not recommend selling your house as is in New Jersey as fixer-upper homes sell for 45% less than turnkey homes. However, if you are in a situation where selling “as is” is the only option, you have the following options based on your situation:

Sell to Companies that Buy Houses for Cash

Cash home buyers are real estate buyers who make direct cash offers on homes. They help home sellers skip the hassle of listing on the MLS, marketing, etc.

✅ Key Benefits of Selling Your House for Cash

• Fast Sale: The MLS listing process is eliminated with cash home buyers. After submitting details on their website, you get an instant offer and closing can happen as quickly as two weeks.
• Flexible Closing: Many cash home buying companies provide a one-month closing guarantee or even go up to two weeks. The speed of the sale makes these cash house buyers appealing to home sellers in desperate need of liquidity.

❌ Key Downsides of Selling Your House for Cash

• Non-negotiable Cash Offers: The deal offered by cash home buyers is usually take-it-or-leave-it. Although there may be room for negotiations, you can’t expect more than 70% of the market value of your home.
• Lowball Offers: We buy houses for cash companies generally pay 50% to 70% of the home’s fair market value, deducting all repair, utility, and re-selling expenses.

» Cash Home Buyers in New Jersey: Checkout our Rankings for Top Cash Buying Companies

Sell Your Home With a Traditional Full-Service Agent

From listing to closing, a full-service agent will help you with everything. But you’ll be paying a full 2.5% to 3% listing agent commission. And even if you find an unrepresented buyer, you’re still on the hook for the full commission.

✅ Key Benefits of Selling With a Traditional Full-Service Agent

• Pricing Assistance: Realtors have years of experience and knowledge of the historic sales in the neighborhood and can conduct a Comparative Market Analysis (CMA) for you.
• Help in Negotiations: Real estate agents master negotiation tactics. They can help you secure the best possible price for your home.
• Easy Paperwork: Real estate transactions involve extensive paperwork. A realtor can ensure all the documents and paperwork are submitted on time.
• Avoid stress and hassles of the process: You can sell your house as-is to cash home buyers in New Jersey. This could save you a significant amount of legal paperwork. You won’t have to deal with a real estate agent or haggle over any additional cost of selling a house in New Jersey.

❌ Key Downsides of Selling With a Traditional Full-Service Agent

• Hefty Commissions: Real estate commissions in New Jersey are 5.5% to 6%. That’s thousands of dollars of fees in commissions.
• Limited Control Over Your Sale: Everything will go through an agent. That reduces the risk that you will do something wrong, but will also limit the control you have over your transaction.
• Slow & Manual Process: Agents do things manually. A simple price change is several steps – the agent has to talk to you over the phone, create a price amendment, get you to sign it, then they sign it, and only then can they update the price on the MLS.

» How to List on MLS: Discover ways of listing on the MLS without an agent.

Sell Your House As Is For Sale By Owner

Selling a house as is by the owner is a DIY approach with no listing agent involved. Sellers have maximum control over the entire process but have to handle all the paperwork with no oversight.

✅ Key Benefits of Selling Your House As Is by Owner:

• Savings on Commission: New Jersey home sellers spend around $28,300 on real estate commission (based on the median home values in New Jersey). Selling your house as-is in New Jersey on your own can help you save around $14,150 in listing agent fees.
• Speed to Market: You can set out to sell your house whenever you are ready. You need not hunt for a real estate agent to begin the selling process. FSBO websites like Houzeo can get you listed within 24-48 hours, or faster!
• Control Over Transaction: You interact directly with buyers or buyer agents. This reduces intermediaries involved in the transaction.

❌ Key Downsides of Selling Your House As Is by Owner:

• No MLS Exposure: Homes on the MLS sold for 17% more than not on the MLS. Selling FSBO will restrict your exposure, so there will be less competition for your property. That will likely reduce the selling price.
• No Help If You Need It: If you need help with paperwork, inspection, negotiation, or closing, you’re on your own.

» How to Sell Your House Without a Realtor in New Jersey: How Selling FSBO works in NJ

Sell by Owner With a Flat Fee MLS Listing Company

If you want to sell your NJ house on your own without compromising on the marketing opt for Flat Fee MLS companies in NJ. A Flat Fee MLS listing service will get you on the MLS for a small flat fee. Homes listed on the MLS sell faster and for 17% more.

✅ Key Benefits of Listing with a Flat Fee MLS Company:

• Save Thousands in Commission: Instead of paying a 5% to 6% listing agent commission, you pay a listing fee.
• Maximum Exposure: You get full exposure to the MLS, Zillow, Realtor.com, Redfin, and hundreds of other websites.
• Full Control Over Your Sale: You retain full control over when to sell and whom to sell.
• A-la-carte Options: Most Flat Fee MLS companies offer services/supplies like yard signs, lock boxes, Showing Features, etc. on a la carte basis.

❌ Key Downsides of Listing with a Flat Fee MLS Company:

• Potential Hidden Fees: Some Flat Fee MLS companies have very high hidden fees. They disclose their hidden charges generally at closing when it is already too late to back out.
• Limited Coverage: Most Flat Fee MLS companies have coverage in a few states. So you might have to hunt for a company that coves your local New Jersey MLS.

That being said, Flat Fee MLS pros outweigh the cons. Opt for Flat Fee MLS companies like Houzeo that have nationwide coverage and disclose all costs upfront. Unlike other MLS listing services, Houzeo offers additional features like Houzeo Showings, Houzeo Offers, etc. that help you in your as-is home selling journey.

Why Houzeo is the Best Flat Fee MLS Company?

7. Who is Most Likely to Buy Your House As Is?

Depending on the condition of your property it will most likely be bought by a cash buyer. This may include traditional cash home buying companies or technologically advanced iBuyers.

By listing on MLS you can attract regular home buyers as well. For instance, you find a home buyer looking to buy in a particular location and doesn’t mind spending on repairs.

That being said, do not restrict yourself to cash buyers and regular home buyers only. Some Millennials have started buying old cheap homes via Instagram during and after the pandemic. So to attract Millenials, which form 43% of the population, you should market your as-is New Jersey home on social media platforms.

8. How to Sell a House As Is in New Jersey?

Selling a home as is in New Jersey is more or less similar to selling a house in New Jersey or any other state. The only major difference is you can skip on the staging homes part However, here are a few additional tips for a smooth as-is home sale in NJ, but selling a house as-is requires a little approach in marketing.

Understand New Jersey Market Conditions

An increase in median home values and decreased DOM indicate the New Jersey housing market is in favor of the sellers. However, decreased home sales paint a different picture.

Parameters	July 2021	July 2022
Median Sale Prices	$429,000	$471,000
Average Days on Market (DOM)	29	33
Home Sales	13,097	10,988
House Inventory	30,181	26,831
Home Sale Growth (YoY)	6.4%	-19.1%

New Jersey home prices reached an all-time high in June 2022, making it a hot seller’s market. By selling your house as is now, you can attract more buyers with zero to minimum repairs.

That being said, do not time the market. An increased DOM combined with rising mortgage rates can roll the dice in buyers’ favor. In a buyer’s market, you cannot attract a top dollar on an as-is property sale. Purchasers will demand more repairs and upgrades, defeating the purpose of selling as is.

» Best Time of Year to Sell a House in New Jersey: Discover the Best Time to Sell Your as-is Home

Make Minor Repairs, If You Can

Make a high return on investment repairs to enhance the look of your New Jersey property. This may include fixing a squeaky doorknob, replacing a leaky washbasin pipe, etc. To ready your house for sale deep clean, declutter, and add a fresh layer of paint.

Conduct a Pre-listing Inspection

To ensure you do not get slapped by the New Jersey seller disclosure laws, get a home inspection done before listing. Hire a professional home inspector to determine the unknown defects present in your house. Put the identified defects in the New Jersey seller disclosures.

Price Your Home Realistically

While pricing, consider both the positives as well as the negatives of your house. For instance, you may set a lower price considering the repair estimates. But, if your home is located near a school, it might work in your favor.

» How to Price Your Home for Sale: Learn to Price Your Home Competitively

Know how Selling As Is Works in Your Area

The process of selling houses “as is” differs across New Jersey. You need to know the exact paperwork, contracts, and beware status of your state. Click on your county or city to know how selling as-is works in your area.

Know How Selling As Is Works Near You in New Jersey

Princeton

Selling a house as is in Princeton

Fill out New Jersey Seller Disclosures Honestly

By selling your house as-is in New Jersey, you cannot skip your disclosure obligations. Fill out the New Jersey seller’s disclosure notice before listing your property.

The disclosure document walks through various sections, asking you questions about various features of your house. Disclose all the known problems in your house upfront. You have to fill out designated sections on smoke detectors, the flooding history of the property, and termite inspections.

Apart from the New Jersey sellers disclosure notice, fill out the federal lead-based paint disclosure if your house was built before 1978.

» Real Estate Disclosures New Jersey: New Jersey Disclosure Laws, how to fill out disclosure forms, and more

Be Thorough with the New Jersey Real Estate Contracts

Unlike other states, there is only one real estate contract in New Jersey which is NJ Realtors’ Standard Form of Real Estate Sales Contract. This real estate contract is by default an as-is contract. The contract clearly states that unless both parties agree otherwise, the buyer has to accept the property in the existing condition.

One thing should be noted by NJ home sellers. Just because you are selling your property as is, buyers are not precluded from inspecting the property, negotiating repairs or treatments in future amendments, or terminating the contract during the option period.

What if You as the Seller Want to Back Out of an “As Is” Offer?

New Jersey real estate contracts stipulate the conditions for termination and make provisions for refunding the earnest deposits. Always consult a real estate attorney and a licensed real estate agent or broker before deciding to not perform on a contract.

What if Contracts do Not Contain Provisions for an “As Is” Sale?

In case you come across a real estate contract that doesn’t contain the provision of buyers “accepting the house as-is”, a seller can negotiate to waive any inspections, appraisal, and survey requirements.

In addition, you can ask for a significant deposit (Earnest money or Option Fee). So, if the buyer does back out, they have a significant amount at stake.

Get on the MLS

Homes listed on the MLS sell faster and for 17% more. MLS will market your as-is home to a wide pool of buyers, including cash home buyers. Label your listing “as-is” to distinguish it from regular home sales as this will save you time and effort in dealing with non-genuine buyers.

List with Houzeo.com

Houzeo gets you on the MLS within 2 business days or even faster. Houzeo is 100% online, so you can make fast listing changes. Here’s how to list a property on MLS and manage your as-is home sale with Houzeo in 4 simple steps:

1. List your property on the MLS with Houzeo.com within 2 business days
2. Manage Showings effectively with Houzeo Showings
3. Review, Compare, and Negotiate Cash Offers with Houzeo Offers
4. Opt for the “Contract to Close Coaching Package” and get a licensed broker to assist you during the closing

Eager to Know How Houzeo Works?

We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner websites in the U.S

» Houzeo Review: Is Houzeo worth it?

Frequently Asked Questions (FAQs)

Also Read

• How Much is Closing Cost in New Jersey: Know the actual closing cost you need to pay while selling a property in New Jersey.
• How Much are Closing costs in New Jersey for Seller: Check out closing costs if you are selling your home in New Jersey.
• Seller Closing Costs Calculator New Jersey: Get an estimate you will have to pay when selling a house in New Jersey.
• What is Title Insurance: Read our blog on what is title insurance and how you should approach it.
• New Jersey Home Inspection: Know the intricacies and importance while selling a house.
• FSBO Contract New Jersey: Learn how to create a For sale by owner contract in New Jersey.

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