40% of home sellers dread repair costs. That’s why many sellers opt to sell their homes as is in South Dakota to cash buyers. But here’s the catch: you get a single lowball offer slashing your home’s value by 30% to 70%! No wonder 85% of sellers fear getting lowball offers.
However, you need not settle! With the best cash buyer marketplaces in South Dakota, you can get multiple offers from national and local cash buyers instantly! This bidding war may boost your home sale value in the Mount Rushmore State.
Key Takeaways
- Don’t settle for the first offer on your South Dakota “as is” home. Compare bids from iBuyers, FSBO websites, and cash buyer marketplaces to get the best deal.
- Make strategic repairs like fixing visible water stains and pest issues to boost appeal and get a higher selling price.
- Get a pre-inspection to identify termite issues and foundation problems. This will help you set an accurate price.
- Disclose all known defects like structural flaws, environmental hazards, and water damage honestly in the South Dakota seller disclosure form.
- Complete the “AS IS” Residential Contract accurately and remember that buyers can withdraw within 15 days.
What Does Selling a House As Is in South Dakota Mean?
Selling a house as is refers to offloading a property in its existing condition without fixing any issues listed in the home inspection report.
When you sell as is, you must disclose every material defect affecting the house’s value in the seller disclosure form. A buyer can withdraw from the deal if you lie on the disclosure.
How to Sell a House As Is in South Dakota?
Follow these 5 steps to ensure a smooth home sale in the Mount Rushmore State:
1. Choose How to Sell Your Home
You have 3 alternatives when selling your house as is in South Dakota:
- Sell a House As Is for Cash in South Dakota: Cash home buyers extend offers that are only 30% to 70% of your home’s Fair Market Value (FMV). On the other hand, iBuyers can pay as much as 80% of your home’s FMV. But, they have strict eligibility criteria for the homes they purchase.
- Sell Your Home As Is By Owner: Selling your house by owner in South Dakota is a smart DIY option. With a Flat Fee MLS service, you can list your property on the MLS without relying on a Realtor. This helps you avoid the 3% listing agent fee, saving you $9,648 on a $321,600 home!
- List on a Cash Buyer Marketplace: These platforms showcase your home to multiple cash buyers and house flippers. Their competitive offers can help you get top dollar when you sell your house as is for cash in South Dakota.
Selling a home as is by owner is like a DIY project. You have to market the property, host showings, and handle negotiations on your own. However, the easiest way to sell FSBO is to through a flat fee licensed broker assistance that can help you save thousands on commissions.
2. Make Minor Repairs
The more repairs your home needs, the lower its value will be. Consider making small repairs, like fixing squeaky doorknobs or replacing a leaky pipe to boost the property’s value.
3. Conduct a Pre-listing Inspection
Hire a home inspector in South Dakota to identify any defects in your property. Including these issues in your disclosure can prevent disputes with the buyer’s agent. This also helps avoid surprises later on during the sale process.
4. Disclose All of Your Home’s Defects
The South Dakota seller disclosure form has several questions that focus on the property’s features and defects. If you hide any defect, the buyer may withdraw from the deal. You may also be sued, lose money, and damage your reputation.
South Dakota law requires the seller to keep the property in the same condition from the contract date until closing. The buyer can legally withdraw from the sale without any further obligations if they discover a violation.
5. Fill Out the As Is Real Estate Contract
You need to fill out the “AS IS” Residential Contract for Sale and Purchase to sell your house as is in South Dakota. Ensure that you fill out the form accurately, as home shoppers will:
- Inspect the South Dakota property.
- Negotiate repairs or treatments in future amendments, or
- Terminate the contract.
👉 Selling Your Home As Is? List here to get top dollar!
How Much Do I Lose Selling My Home As Is in South Dakota?
If you’re selling your house as is to investors in South Dakota, you could lose around 30% to 50% of your home’s Fair Market Value. The exact amount depends on the condition of your home.
You can sell your property at or slightly below its FMV if it needs minimal repairs. Since fixer-upper homes are more popular than turnkey properties, you may get top dollar for your home on the MLS. If you opt for a Flat Fee MLS listing, you can even save on the 3% listing agent fee.
Imagine you own a $321,600 home in the Mount Rushmore State. If you choose a 3% Realtor, you pay $9,648 to get your house on the MLS. But, if you list with Houzeo, you get a listing for $399 and save $15,681!
📢 NAR Settlement Saves Sellers Thousands in Commission
The NAR Settlement went into effect on August 17, 2024. Buyer agent commissions can no longer be offered on the MLS. This means sellers will save thousands! But it also means there’s a lot more compliance and litigation risks.
Here’s what this means for you:
- Sellers Can Save Thousands in Commissions: You will likely pay much less than the traditional 3% buyer agent commission. That’s because buyer agent commissions will be negotiated twice: Once when buyers engage buyer agents, and again when sellers review offer contracts.
- Seller Priority #1 Will Be Paperwork (to Mitigate Compliance & Litigation Risks): Buyer agents mitigate all types of risks. From seller disclosures, offer contracts, contingencies, inspections, repair requests, appraisal, and closing – buyer agents keep the paperwork tight. Their state licensing authorities, Realtor associations, and MLS’ audit paperwork compliance. Without buyer agents, sellers will have to learn and adapt. Or risk expensive litigation.
- Negotiations Can Now Feel Like Haggling: Buyer agent commissions will now be part of offer contracts and buyer agency agreements. Buyers may ask sellers to include commissions in the form of seller concessions. That means home buyers and sellers alike will be negotiating commissions. Sellers will need expert licensed brokers to help them with these negotiations.
- Buyer Agent Commissions Can Be Offered Offline: Buyer agent fees can still be offered outside of the MLS. They just cannot be advertised on the MLS.
» Houzeo Reviews: Find out why Houzeo is one of South Dakota’s best cash buyer marketplaces.
Pros and Cons of Selling My Home As Is in SD
✅ Pros
- Zero Repair Costs: Water-damaged kitchen countertops, dripping faucets, or broken roofs aren’t your concern. The flipper or investor buying your South Dakota house will handle such repairs.
- No Home Inspection-Related Delays: When selling your home in a poor condition, you can avoid delays caused by inspector unavailability.
- Quick Home-Selling Timeline: When you skip the repairs, you can list your property for sale immediately. If you find a buyer with a mortgage preapproved for distressed properties, the closing process can be quicker.
❌ Cons
- Below Fair Market Value: Cash home buyers offer only 30% to 70% of the property’s FMV. So, you will be leaving thousands of dollars on the table.
- Negative Buyer Assumptions: Buyers may assume that your property has serious defects, which may not necessarily be true. This assumption may negatively affect the offers your house attracts.
- Mortgage Challenges for Buyers: South Dakota mortgage lenders typically do not finance properties with structural or safety issues. Moreover, FHA and VA loans and many conventional mortgages do not allow financing for fixer-uppers.
Can a Home Buyer Back Out of an As Is Contract in SD?
Yes, a buyer can back out of an as-is contract during the 15-day inspection period without penalty or losing their deposit. This allows them to withdraw from the deal if the property doesn’t meet their expectations.
However, it’s important to note that when selling a house as is, there’s generally no legal requirement to meet Minimum Property Requirements (MPRs). Sellers must disclose known defects, allowing the buyer to make an informed decision.
If the costs are under-reported, the seller may be responsible for repairs per Section 9 of the Standard Real Estate Contract.
Should I Sell My South Dakota House As Is?
Yes, selling your distressed house as is in South Dakota can save you time and money, especially in South Dakota’s competitive market.
Most cash buyers in South Dakota may extend lowball cash offers of around 70% of your home’s FMV. But with cash buyer marketplaces, you may get 100% of your home’s FMV. The fact that you skip the 3% listing agent fee is a bonus.
