Selling a Home As Is in Delaware (A-to-Z Guide)

Homeowners selling a house in ‘as is condition’ don’t intend to replace, modify, or repair anything.

Buyers will receive the property exactly the way they see it on the day the sales contract is signed.

The Delaware agreement has a de facto ‘as is’ condition clause. Buyers can agree to accept the property as found, along with the defects itemized on the property disclosure as part of the contract.

Yes, absolutely, you can sell a home ‘as is’ in Delaware! As long as homeowners follow the steps mandated by law, property owners can sell a Delaware house in ‘as is’ condition.

We’ll outline the required steps in this guide.

Before we focus on specific details to answer the question, “How does selling a house ‘as is’ work in Delaware?” we need to address the state property disclosure law.

The Delaware Real Estate Commission’s formal “Seller’s Disclosure of Real Property Condition Report” requires all homeowners to fill out a property disclosure and then give that document to prospective buyers.

Buyers must receive this condition report before writing an offer. The answers to the questions asked on the report must be completed by the property owner, not a real estate agent or a broker.

The seller needs to be transparent about any material defects that would reduce the value of the home. Issues that present a risk to the new owner’s health or safety must also be identified on the report.

While the seller isn’t required to hire a professional inspector to complete the disclosure, buyers, however, are encouraged to hire their own inspectors to examine the property before closing escrow.

The nine-page disclosure focuses on questions about the structure, but also asks for information about the home’s mechanicals, occupancy, environment, zoning, and the lot where the residence is located.

Owners selling a house with polybutylene pipes or lead pipes need to itemize the types of plumbing used in the home.

A house with a current insect infestation, including bed bugs or termites, needs to have those conditions listed on the disclosure. Past insect damage also needs to be disclosed.

Property owners selling a house in a flood zone, property with fire damage or water damage, septic system failure, foundation problems, or unpermitted work must disclose these defects.

While there isn’t any legal requirement to disclose selling a haunted house (or one with psychological impacts) or a house where a death occurred, homeowners may want to be transparent about these issues and disclose.

The state property report requires disclosing lead paint, as well as the presence of asbestos, mold, or radon.

Federal law also requires sellers to share a written lead paint disclosure with prospective buyers for properties constructed before 1978.

You can leave stuff behind when you sell your Delaware house ‘as is’ when both buyer and seller agree to include that provision on the sales contract.

While The First State sales agreement requires the home to be turned over to the buyer in “broom clean” condition, there’s also a space on the contract under the “Inclusion” section to itemize the personal property that will be left in the house after escrow closes.

Sellers should use that contract line when planning to leave items behind. Buyers must then agree to those terms when signing the sales agreement.

“Why sell a Delaware house ‘as is’?” Only you can answer that question, and the easiest way to make the decision is to weigh the advantages and disadvantages of selling in ‘as is’ condition.

Let’s consider the advantages first.

Pros of Selling Your House As Is

• Fixing is not only expensive but also time consuming, even when you don’t do the work yourself. You’ll eliminate that cash drain and hassle when you simply sell ‘as is’.

• A sale of an ‘as is’ property moves quickly, particularly when using a Delaware cash house buyer. Cash sales eliminate the need for loan applications, buyer qualifications, and property appraisals. These can add weeks to the closing calendar.

• When buyers hire a Delaware home inspector to make a professional property report, this typically begins another round of price negotiations to determine who will pay for the material defects found by the inspector. You’ll eliminate that hassle when selling your house as a fixer.

• Cash home buyers typically allow sellers to leave unwanted items behind after the sale closes. That saves the seller time, and also the expense of doing a home cleanout.

There are a few downsides, however, to selling as a fixer.

Cons of Selling Your House As Is

• You won’t receive the highest possible proceeds for a house that needs repairs. Studying the estimated closing costs for sellers can help you determine the bottom line you’ll accept for an offer.

• The vast majority of home shoppers want to buy and simply move in. They aren’t interested in purchasing a home that needs work. Selling ‘as is’ limits your prospective buying pool.

So, should you sell your Delaware house ‘as is’ or fix it up? When you want to move quickly, with the least amount of hassle, selling as a fixer is the way to go.

The next question we need to answer is, “How do I go about selling my house ‘as is’ in Delaware?”

There are a number of sales options, but we’ll begin with selling to a Delaware cash real estate buyer.

How to Sell a House As Is, Fast and For Cash Directly to an Investor

Who Are Cash House Buyers?

Cash house investors purchase real property as a profession. They operate as individuals or they partner with other investors to form cash house buying firms. Hedge funds also purchase residential real estate as an investment.

One major difference between typical buyers and investors is that investors use cash to purchase homes. Many have their own cash source to buy real estate, but some investors take out loans from private lenders.

Private money loans close faster compared with traditional mortgages because there aren’t any formal loan applications to be approved by a lender’s underwriter. There also aren’t any property appraisals involved.

Cash house buyers purchase Delaware investment properties that need repairs. They then repair the house and resell it to other buyers. This is known as “flipping” the property.

A number of real estate investors in Delaware focus on buying rental properties, and they continue to lease these houses for income.

The professional cash buyer will handle all the contract and escrow details when you sell your house to a real estate investor.

Cash house buyers can assist homeowners in these situations:

• property owners selling a house after probate
• homeowners selling a home that needs work
• former partners selling a house during divorce
• seniors looking to downsize
• workers selling a house for job relocation
• people selling to avoid a property foreclosure
• residents selling a house with back taxes owed

Cash investors generally work with Delaware investor-friendly title companies. These firms have experience in cash sales and can quickly close the transaction.

Pros of Selling Your House As Is Directly to an Investor

• Selling to a company that buys houses is a fast transaction.

• Cash-based sales eliminate the time waiting for buyers to complete the laborious loan applications and qualifications. You also eliminate the mandatory lender appraisal requirement.

• You won’t have to pay Realtor commissions on your sale. Investors don’t charge any commission fees, and you don’t have to use a Realtor when selling to an investor.

• Your closing costs are paid by the cash investor. This is another significant savings!

• Sales to cash buyers don’t involve all the nitpicking that occurs when you sell to typical home purchasers who look for turnkey quality in a property.

Cons of Selling Your House As Is Directly to an Investor

• You typically receive less than ‘as is’ market value for your property. When making an offer, an investor deducts the cost of home repairs from the after-repair value of your home, as well as incorporates a potential profit that they will need to make by reselling the property.

• You will be the fiduciary for all aspects of your sale. When you vet your cash investor, this shouldn’t be a problem, since seasoned investors with a history of closed sales operate ethically — or they don’t stay in business long.

Finding the Best Cash House Buying Company

Locating cash house buying companies is as easy as turning on your computer and using the internet browser to find local investors.

Use these search terms to start the process. Substitute your area to bring results for local investors.

• we buy houses Bear DE
• sell my house fast Bear DE
• cash house buyers Bear DE
• sell my house for cash Bear DE
• iBuyer companies Bear DE

Narrow your list to cash buyers with a minimum of three years of industry experience before you move on to the vetting process.

How to Choose an Ethical Investor?

Locate the “About Us” page on the cash buyer’s website. This page should include important information about the investor’s education, training, and experience.

Ethical investors are transparent about this professional information, so if this isn’t listed on the firm’s website, cut that person or company from your prospect list.

Once you’ve done that, it’s time to check the consumer reviews for each investor.

Look at the local branch of the Better Business Bureau (BBB) and consumer review pages on the internet.

Eliminate the investors with many complaints or an unsatisfactory rating from the BBB from your list.

Vetting prospective investors takes time and effort. When you don’t have that time, or don’t want to spend it researching cash home buyers, there’s an easy alternative to screening.

You can request cash offers from investors online by using HouseCashin. Simply complete one quick request form online, and we’ll forward it to our partnering cash investors.

HouseCashin does all the investor vetting for you. We prescreen our partnering companies so you’re working with trained and experienced professionals who have a record of closing escrows.

You’ll never be charged a fee for the vetting or the offers — no matter how many offers you receive!

If this quick and professional approach sounds like an alternative to you doing all the work, request your cash offers now.

The next sales option requires the seller to do all the heavy lifting. Let’s explore that now.

How to Sell a House As Is by Listing It by Owner

A property advertised “for sale by owner” is known in real estate as an FSBO. This method lets you sell your property without relying on a real estate agent, giving you full control over the entire sale process.

One key step is knowing the estimated home value to imagine how much you can sell your house for. However, to know the exact fair market value, you will need a professional appraiser or real estate agent to do research for you and provide you with a detailed report.

When you’ve tackled the pricing, you will then have to find potential buyers for your home. Know about your options in the next section.

Where Can You List a House For Sale by Owner?

Locating prospective buyers is one of the most challenging aspects of selling as an FSBO.

The easiest way to let home shoppers know about your listing is to put a sign on the lawn or in the home’s window.

This gives you some exposure to street traffic, but it probably won’t be enough to attract a large buying pool.

A professional-looking video that shows your home to the best advantage is another way to advertise your property. You can post your video on a number of FSBO listing sites for little or no cost.

There are some significant advantages to selling a house in Delaware yourself.

Pros of Selling Your House by Listing It by Owner

• The biggest advantage to an FSBO is the commission savings. You won’t need to shell out 3-6% to Delaware Realtors when you represent yourself.

• Working alone to sell your house means you decide all the details. You can list when you want and close according to your personal timetable.

• Realtors don’t work exclusively with one client, and you must share their time with a number of buyers and sellers when you list with an agent. When you sell by owner, your house is your only listing. You can pour all your efforts into getting it sold without any need to handle other clients.

Cons of Selling Your House by Listing It by Owner

• Most buyers need a mortgage to buy your home. Just like when selling with a Realtor, you’ll still have the wait time while your buyer applies and is approved for a home mortgage.

• You are on your own to be your fiduciary. You won’t have anyone to consult or fall back on for advice during the sale.

• Mistakes can happen even when working with a professional. When you don’t have the training or experience in the field, even a small mistake can mean a major delay in closing. A major mistake may see you in court when your buyer isn’t happy. Understanding the escrow process and closing costs when selling a home by owner can help you avoid errors.

The last sales option we’ll consider is using a real estate professional. Sellers hiring an agent can sit back and do a minimal amount of work, but they’ll pay a hefty commission to do that.

Who Are Real Estate Agents?

Real estate agents are responsible for real estate marketing, negotiations with buyers, and other aspects of selling a property.

Agents guide you through the listing and disclosure process, negotiating the sales contract, and also through the details of the escrow closing.

Realtors are your fiduciary and represent you from the listing contract through the final signature on the closing documents. Agents put your interest first above all others.

Delaware agents must hold a state-issued license and are required to work under the direction of a licensed broker.

Agents representing themselves as a “Realtor” are members of the Delaware Association of Realtors. That’s the state branch of the National Association of Realtors (NAR).

NAR members take an oath to not only operate as your fiduciary but also to act in accordance with the highest ethical business standards.

Pros of Selling Your House As Is with a Real Estate Agent

• Realtors use a proprietary database of current listings and home sales to assist their clients in deciding on a sales price. This information helps sellers set a competitive price relative to the local market conditions.

• Real estate agents have the education and training to guide sellers through each step in the listing, marketing and sales process. Seasoned agents also have experience in quickly resolving problems that can happen at any time during a sale.

Cons of Selling Your House As Is with a Real Estate Agent

• Delaware brokerage commissions average 5-5.5% of the property’s sales price. This fee is split between the seller’s and buyer’s brokerages. A percentage of those fees is then paid to the individual real estate agents involved in the sale. The average Realtor cost to sell a home is the largest line item on the closing costs in Delaware.

• Agents will mostly bring you buyers who look for turnkey properties or homes that require only minor repairs. It may take some time to locate a buyer for a rundown home.

• Most buyers brought by real estate agents typically need to borrow to purchase a house.
  This can add weeks, maybe more, to the sales process.

The key to an effective sale by using a real estate agent is to find an experienced and ethical realtor.

How to Choose an Ethical Real Estate Agent?

The first step is to ask your friends, family members, and neighbors for agent recommendations.

Filter that list by looking for Realtors who have sold a number of ‘as is’ properties in your specific neighborhood. Also, collect names from sign riders on sold properties in your area.

Once you have your list, vet the agents by checking the Delaware Department of State Division of Professional Regulation License Look-up. This search will confirm the agents have a valid and active license.

Check the local branch of the Better Business Bureau (BBB) and local online consumer review websites for any complaints filed against agents on your list.

Remove any that have outstanding, unresolved complaints with the BBB and those with numerous online negative reviews.

The last step is to select three agents with at least three years of experience representing fixers in your area and invite them to come to your house for a walkthrough.

Ask the agents to bring their professional portfolios and a list of former client recommendations to that meeting. Check out the recommendations and look to see how the agents marketed other properties.

Select the agent that has the best communication skills and the one you feel would work best with you during the sale.