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

Sellers offering a property in ‘as is’ condition don’t want to replace, repair, or rehab anything. The buyer agrees to take the property as found at the time of the offer in an ‘as is’ sale.

Sellers must still complete a real estate property disclosure, even when using the bill of sale to complete the property transaction. We’ll discuss the details of the disclosure later in this article.

The Iowa real estate purchase contract doesn’t include a formal ‘as is’ condition clause.

Yes, you can sell a home ‘as is’ in Iowa. Whether using a real estate purchase contract or a bill of sale, you can definitely sell your home ‘as is’ in the Hawkeye State.

The next question we need to answer is,“How does selling a house ‘as is’ work in Iowa?” Let’s now explore the details of the mandatory property disclosure.

Iowa Code Chapter 558A requires sellers to complete a property condition disclosure and to deliver it to the property buyer.

Sellers need to complete every section on the property disclosure. If the seller doesn’t know the answer, the law requires sellers to make every attempt to do research to answer the question.

After researching, if the seller still can’t answer the question, the seller can simply write “UNK” (unknown) next to the question.

Sellers can also make an approximation to answer a question. Those statements should be labeled “AP”.

Buyers must sign the disclosure, or the seller can document it was delivered to the buyers through registered mail. Disclosures can also be given to the buyer’s legal representative.

If buyers withdraw from the sale after receiving the disclosure, sellers must return the buyer’s purchase deposit.

No penalty can be assessed against the buyer for canceling the sales contract based on information found on the disclosure statement.

Some disclosure questions ask for known conditions.

Selling a home with asbestos, selling a house with termite damage, or selling a house in a flood zone are included under the known condition questions and must have full disclosures.

An insect infestation, such as bed bugs, must be included under the termite question.

Other questions ask the seller if tests have been done to discover issues. Selling a house with radon is one of the questions asking for the seller’s knowledge of any testing.

Owners selling a house with septic system failure or foundation issues need to disclose these problems.

Selling a house with fire damage or a home with water damage must be disclosed on the Hawkeye State disclosure form.

Selling a house with lead paint requires sellers to disclose that on the Iowa seller’s property disclosure. This rule applies to homes constructed before 1978.

Sellers must also meet the requirements for the federal lead paint disclosure.

Selling a house with lead pipes or mold, or a home with problems related to fracking, or a residence with polybutylene pipes aren’t included as questions on the disclosure.

Selling a house with unpermitted work or a haunted house also aren’t specific subjects for the questions, but if alterations negatively impact the material value of the house, it should be disclosed.

To be transparent, any issue that impacts the material value of the house must be disclosed by sellers.

You can leave stuff behind when you sell your Iowa house ‘as is’ as long as that’s stated in the real estate contract and the buyers agree to that arrangement.

Listing brokers, or sellers representing themselves, must keep the completed disclosure statement for a minimum of at least five years.

“Should you sell your Iowa house ‘as is’ or fix it up?” That’s an important question for sellers to consider.

Fixing takes time and cash to buy materials and pay for labor if you’re not doing the work yourself.

It helps to consider the advantages and disadvantages of selling ‘as is’.

Why sell an Iowa house ‘as is’? There are many benefits.

Pros of Selling Your House As Is

• Having a contractor do repairs on a house can be expensive. It’s also time-consuming to search for a qualified contractor to do the repairs well. You’ll skip both the hassle of locating a contractor and paying for repairs when you sell your house ‘as is’.

• Transactions move quickly when you sell as a fixer, particularly when you sell to an Iowa cash house buyer. A cash buyer doesn’t require all the wait time for lenders to qualify the buyer and the property.

• Sellers of properties advertised as turnkey must deal with a list of items a home inspector in Iowa finds and reports to the prospective buyers. Buyers of fixer properties understand that there will be items that need repaired and replaced in an ‘as is’ listing. They are less picky than people looking for a house in good condition.

• Once any prospective buyer has a home inspection done, that report must be shared with all future potential buyers of the property. Selling ‘as is’ reduces the number of reports you’ll need to share with prospective buyers. ‘As is’ buyers understand the property has defects, and some don’t require inspections before buying.

• ‘As is’ buyers sometimes allow you to simply walk away from the house without any cleaning before the close of escrow. This saves considerable time for the seller.

Cons of Selling Your House As Is

• You won’t receive a turnkey sales price for your fixer. ‘As is’ buyers deduct the cost of repairs from their offers and a compensation for the time required to do them. Reviewing the estimated closing costs for sellers will assist you in deciding to sell at a below-market offer.

• You limit your buyer pool when you sell ‘as is’. Most buyers want a turnkey property. However, there is a pool of buyers who specifically look for fixers. A cash real estate buyer in Iowa wants to buy an ‘as is’ property to rehab.

In the next segments of this article, we’ll answer the question, “How do I go about selling my house ‘as is’ in Iowa?”

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

Who Are Cash House Buyers?

Cash house buyers are property investors. They have cash or partner with people or companies who provide them with quicker loans than mortgages. This allows them to close fast.

Cash house buyers buy investment property in Iowa that needs work to turn it into a rental. Some investors repair houses to “flip” — resell to other buyers.

Some Iowa real estate investors focus exclusively on buying rental properties. Although they, unlike flippers, don’t aim to generate profit by adding value through repairs, they still prefer buying cheap rundown homes and fixing them up.

Cash house buyers look to buy homes from:

• heirs selling a house under probate
• homeowners selling a rundown house
• couples doing a divorce home sale
• elders looking to downsize
• workers selling a house for job relocation
• homeowners selling when facing foreclosure
• owners selling a house with unpaid property taxes

Cash house buyers work with Iowa investor-friendly title companies to quickly move the transaction through title and escrow.

Evaluating the pros and cons of selling your home to an investor can assist you in making the decision to sell.

Let’s begin with the advantages.

Pros of Selling Your House As Is Directly to an Investor

• Investors that work as a cash home buyer offer a speedy closing. They frequently close within the week, sometimes in a matter of days.

• You’ll eliminate the time delay that a traditional mortgage requires. Investors won’t need to apply for a traditional mortgage loan, have the property qualify for the sales price during an appraisal, or wait for the underwriter to approve the loan. This saves weeks of waiting.

• You’ll skip paying commissions when you don’t use a real estate agent. That’s a considerable savings.

• Investors usually pay their closing costs and also pay the buyer’s closing costs. That’s another major cash savings.

There are, however, some downsides when selling to an investor.

Cons of Selling Your House As Is Directly to an Investor

• Investors generally don’t buy at market value. They know through experience the cost of repairing the home and will deduct that from the offer they make.

• Working without an agent means you won’t have someone representing your fiduciary interests. However, if you vet your cash house buyer to locate a seasoned investor, your sale should go smoothly. Investors and investment companies don’t stay in business long if they don’t operate ethically.

Finding the Best Cash House Buying Company

The easiest way to locate cash house buying companies is searching online by using your favorite browser and some of the following search terms:

• we buy houses Davenport Iowa
• sell my house fast Davenport Iowa
• cash house buyers Davenport Iowa
• sell my house for cash Davenport Iowa
• iBuyer companies Davenport Iowa

Substitute your city for the samples. If you live in a rural area, search by using the closest major population center.

Once you’ve found a few local cash house buying companies, it’s time to vet them.

How to Choose an Ethical Investor?

The first place to start your research is the investor’s webpage. Look for the “About Us” or “Our Company” page.

You should find background information about the person and the company on that page. If the page is missing or the information is vague, it’s time to move on to another investor.

The next place to look is the website of the local branch of the Better Business Bureau (BBB).

Check consumer review websites to locate reviews from prior clients. If you find a number of negative reviews, remove that investor from your list.

If you don’t have the time to do this vetting, you can request cash offers from up to five investors with a single online request from HouseCashin.

HouseCashin researches and does the pre-screening of investors for you. HouseCashin’s partner companies will make cash offers for your house.

There’s no charge for the offers or the pre-screening service. And you aren’t obligated to accept any of the offers. Request your cash offers now.

Let’s review the other options for selling your house before you request your offer.

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

You don’t have to sell your house to an investor if you don’t want to hire a real estate agent. You can advertise it to the general public on your own, like an agent would.

When thinking of how to sell a house in Iowa on your own, one of the first things you need to nail down is your current home value. Knowing this helps you set a price that’s competitive in the market, while ensuring you don’t undervalue your property.

You can research similar homes for sale nearby and check online tools for a general understanding of your approximate home value.

For a more accurate valuation, however, you can request limited servies of a real estate agent or hire an appraiser.

Now, let’s discuss some options for how you can attract buyers for your home.

Where Can You List a House For Sale by Owner?

Marketing your house is an important part to finding qualified buyers.

Posting your listing on websites to advertise for sale by owner is a good way to have buyer’s eyes on your listing.

The easiest way to promote your house is to place a sign on the lawn. If your house is located in a highly trafficked area, a sign might attract a number of prospective buyers.

Making professional-looking door hangers or fliers and distributing them in the neighborhood might also attract buyers.

Your neighbors might have friends or relatives who would be interested in moving to the neighborhood.

Pros of Selling Your House by Listing It by Owner

• You’ll avoid the seller’s real estate agent commission when listing and selling the house yourself. That saves you the fee — 2.5-3% of the sales price.

• A for-sale-by-owner listing, known as an FSBO, allows you to make all the decisions about the listing and sales. You set the calendar for the sale.

• Real estate agents work with a number of clients. When you list your property yourself, you are your only client. You can spend all of your time focused on selling your house.

Cons of Selling Your House by Listing It by Owner

• Most buyers require a mortgage to purchase a house. You’ll still have the wait for the buyer and home to qualify for the purchase. That can mean weeks of waiting for loan approval.

• You won’t have a professional to represent your fiduciary interests. You will be on your own to guide your sale through the listing and sale processes.

• Selling as an FSBO listing can mean delays when you need to research what you need to do as your own listing agent. If you make an error, that can even mean a lawsuit, even if it was unintentional. When working as your own listing agent, it helps to know the closing costs when selling a home by owner to minimize the chance for mistakes.

Who Are Real Estate Agents?

The state requires real estate agents to be licensed. Iowa agents must take real estate coursework and pass exams on that material.

Agents must also work under the direction of a licensed broker.

Your selling agent assists you in listing, marketing, taking offers from potential buyers and negotiating them, as well as guiding the sale through title and escrow.

Agents using the title “Realtor” are members of the Iowa Association of Realtors, a state branch of the National Association of Realtors (NAR).

The NAR is a professional trade organization that promotes ethical real estate practices.

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

• Realtors work with a database of prior property sales. These are known as comparable sales, or “comps”. This information helps you set a sales price in line with other area sales. It also helps you receive top dollar for your sale.

• Real estate agents have the education, training, and experience to guide you through the sale, and get the best sales price for your property. They also have the marketing skills to attract buyers to your listing.

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

• The average Realtor cost to sell a home is the largest part of the closing costs in Iowa. The commission costs are a major downside to working with a real estate agent.

• Agents work with a number of clients. Not only will you be one of a number they’ll represent, but your house is also a fixer. ‘As is’ homes have the smallest buyer pool, so agents may spend their efforts and marketing budget on faster-moving turnkey properties.

• Real estate agents typically work with buyers who need mortgages. This means you’ll have all the delays of traditional mortgages. You’ll need to wait for the approval of the buyer, appraisal of the house, and then final underwriting approval before the loan funds. This can take weeks.

How to Choose an Ethical Real Estate Agent?

There are a number of licensed real estate agents in Iowa. You’ll want to vet your list of prospective agents before selecting one to represent you.

Start by checking to make sure your agent has a valid Iowa license to sell real estate using the search license tool on the Iowa Professional Licensing website.

Check the Iowa Department of Inspections, Appeals, and Licensing using that department’s online search tool to discover any disciplinary actions taken against your agent.

The local branches of the Better Business Bureau (BBB) also handle complaints between clients and real estate agents. Check that online websites for any complaints filed there.

Look for for sale signs in your neighborhood. Call those agents to arrange an in-person interview of those prospective agents.

Seasoned agents have a portfolio that shows their sales plans, samples of their marketing approaches, and letters of recommendation from past clients.

Ask the agents what approach they’d take to market your specific home. Agents should be happy to sit down with you to discuss plans to list and market your property.

One of the most trusted ways to find an ethical agent is to ask family and friends for recommendations based on their experience.

Be sure to select agents with experience listing and marketing ‘as is’ properties. Fixers take special skills to market and sell.