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

‘As is’ condition means as the seller sees it. The buyer doesn’t intend to do any modification, repairs, or alterations to the property in an ‘as is’ sale.

The standard Massachusetts sales contract doesn’t have a formal ‘as is’ condition clause, but there’s a statement that the house is sold as the buyer finds it at the time the offer was made.

Yes, you can sell a home ‘as is’ in Massachusetts. The Bay State is a caveat emptor state. Real estate transactions follow the old common law rule of “buyer beware”.

All houses sold in Massachusetts are sold ‘as is’ with only two important exceptions that we’ll cover later in this article.

How does selling a house ‘as is’ work in Massachusetts? The first step is to list and get ready for buyers to bring in their professional inspectors.

Most homes listed and sold in the commonwealth use the Massachusetts Association of Realtors Seller’s Statement of Property Condition.

The only two things under law that sellers must disclose to prospective buyers is the presence of lead paint and a house that uses a septic system.

The Contract to Purchase Real Estate requires sellers to include the written lead paint notification and certification, as well as the type of agency used to sell the house.

“Agency” is a term used in the real estate industry to disclose who the real estate agent represents.

A seller’s agent represents the seller exclusively. The buyer’s agent represents them.

An agent that represents both buyer and seller operates as a dual agency agreement, and that shared representation needs to be disclosed to both the buyer and the seller. The agency disclosure must be made in writing.

“The Home Inspector Facts for Consumers” brochure must be given to the buyer as part of the sales transaction.

The sales contract recommends buyers to hire home inspectors to assess the faults and problems with a home before buying.

Commonwealth law also requires sellers to answer honestly any buyer’s questions about the house.

That means sellers need to be ready to answer a list of questions, including the following:

• Are you selling a home with asbestos?
• Are you selling a house with lead pipes?
• Does your home have high levels of radon gas or indoor mold?
• Are you selling a house with a faulty septic system
• Are you selling a house with foundation issues?
• Does the house have any unpermitted work such as additions or other alterations?
• Are you selling a house with fire damage or water damage?
• Does this house have termite damage or other insect infestations, including bed bugs?
• Are you selling a house in a flood zone?
• Has your house been flooded in the past?
• Does this home have polybutylene pipes?

Some buyers may need assurances related to paranormal activity and if the house you’re selling is a haunted house.

Any home impacted by prior hydraulic fracturing (fracking) must disclose that on the form.

Selling a Massachusetts house built before 1978 requires sellers to complete a federal lead paint disclosure.

The state also has a separate requirement for selling a house with lead paint.

The standard Massachusetts contract states that you can’t leave stuff behind when you sell your Massachusetts house ‘as is’.

The property must be “free of all occupants and tenants and all personal property”.

You’ll need to arrange to discard your stuff, and have the house broom clean for the new owners when the transaction closes.

“Should you sell your Massachusetts house ‘as is’ or fix it up?” You may have contracting skills, or know someone who does, but it still takes time to do repairs to market your house as turnkey.

Why sell a Massachusetts house ‘as is’? There are a number of advantages.

Pros of Selling Your House As Is

• If you don’t have the skills and talents to do home repairs, you’ll need to spend time finding reliable contractors and then supervising the work they do. Even if you do the work yourself, that will take time and costs for materials.

• You save time selling ‘as is’. In fact, there’s a pool of Massachusetts cash house buyers looking specifically for fixers. Cash buyers mean you don’t have the wait for the mortgage process — and final underwriter approval of your buyer’s loan.

• A Massachusetts home inspector report can lead to a prolonged negotiation with picky buyers. When you list ‘as is’, and make it clear you’re not doing any repairs, this saves you stress of negotiations.

• Selling your house as an ‘as is’ listing saves you money. You won’t be paying all the fees and charges during the time the home is under repair. You pay utilities, property taxes, mortgage interest, and any HOA fees during the time you or your contractor do repairs.

There are some downsides to selling as a fixer, too.

Cons of Selling Your House As Is

• You’ll receive lower offers when your house isn’t a turnkey property. Reviewing the estimated closing costs for sellers can help you evaluate offers and determine the amount of the cash you’ll receive at closing.

• You’re limiting your buyer pool with an ‘as is’ listing. Most traditional buyers aren’t interested in fixers. However, cash house buyers, fortunately, have a keen interest in purchasing homes that need rehabbing and repair.

Even if you haven’t made up your mind to fix or sell ‘as is’, exploring the question, “How do I go about selling my house ‘as is’ in Massachusetts?” may help you make that decision.

There are a number of ways to sell your house. Let’s start the review of these options with using a cash real estate buyer in Massachusetts.

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

Who Are Cash House Buyers?

Cash house buyers are companies or individuals who invest in real estate.

Rather than borrowing money from banks to buy homes, cash buyers use their own money or finance the purchase price from private lenders.

Personal and private cash doesn’t require all the steps demanded by traditional lenders who loan money for mortgages. Most importantly, it doesn’t have the same wait time.

Cash investors buy investment homes in Massachusetts that need repair. The investor then updates or repairs the property to resell (“flip”) the house to other buyers.

Real estate investors in Massachusetts also specialize in buying rental properties as a primary business focus.

You might benefit if you sell your house to an investor. Cash buyers look to assist:

• families selling a house in an estate
• homeowners selling a house in bad condition
• separated couples selling a house during divorce
• couples looking to downsize
• workers selling a house for job relocation
• homeowners who are upside down on a home
• homeowners selling a house with back taxes owed

Cash buyers typically work with an investor-friendly title company in Massachusetts.

Pros of Selling Your House As Is Directly to an Investor

• A company that buys houses typically offers a speedy sale.

• Selling to an investor means you’ll avoid the formal appraisals, detailed home inspections, the underwriting wait period that lenders require, and the uncertainty of your home appraising for the sales price.

• When you skip paying commissions, that’s a savings of 2.5-3% of the selling price.

• Investors frequently pay the seller’s closing costs. That means significant savings for the seller.

Cons of Selling Your House As Is Directly to an Investor

• You won’t receive market value for your property. Investors deduct the cost for repairs and count in a discount that will allow them to make a profit when reselling the property.

• Working without an agent in an investor sale means you will be responsible to protect your fiduciary interests. Of course, you may hire an agent, but then their commission will eat into your proceeds, in addition to the discount you are making to the investor.

You’ll need to do some basic research to find a company or investor who operates ethically. Let’s see how to do it.

Finding the Best Cash House Buying Company

Locating a cash house buying company is as easy as doing an online search by using terms like these:

• we buy houses Boston MA
• sell my house fast Boston MA
• cash house buyers Boston MA
• sell my house for cash Boston MA
• iBuyer companies Boston MA

Once you’ve found a number of potential companies, vet them to find at least three with the experience and a record of successful home purchases.

You can vet the investors and investment companies you find online in a number of ways.

How to Choose an Ethical Investor?

Use the company’s website to locate the “About Us” page. Look for the names and experience of the company’s principal investors.

If the website doesn’t have any identifying information, it’s time to move on to other potential companies or investors.

Look for companies or individuals with at least three years of investment experience. Check to see they also have a number of closed sales.

Use the local branch of the Better Business Bureau (BBB) website to discover any complaints filed against your list of prospective investors.

Search the Secretary of the Commonwealth of Massachusetts’ website by using the online search tool to vet local investment businesses.

This allows you to confirm the company has a good business standing in the commonwealth.

If all this takes more time than you have to devote to the search, request your cash offers from HouseCashin.

One online request allows you to receive offers from up to five investors. You’ll receive offers from investors that have been vetted and pre-screened for you.

You have no obligation to accept any of the offers, and there isn’t any fee to receive them.

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

If you want to explore the other selling options before requesting offers, let’s continue with selling your house to a non-investor without hiring a real estate agent.

That’s known in the industry as “FSBO”, which stands for “for sale by owner”.

When selling your home this way, one of the first steps is to find your home’s value.

Knowing this number allows you to set an asking price that attracts buyers and ensures you get fair compensation for your property.

Marketing is also key component of selling your house in Massachusetts. Let’s see your options.

Where Can You List a House For Sale by Owner?

The best FSBO sites offer a place to post your listing for free or for a nominal charge. The more websites host your listing, the greater chance you’ll sell your property.

Posting a sign on the home’s lawn or in a window on the property is another way to let passersby know about your listing.

Make up a professional flyer to distribute to your neighbors. Someone in the neighborhood may have a friend or relative who wants to move nearby.

The advantages of listing as an FSBO focus primarily on your cash savings, but there are other benefits.

Pros of Selling Your House by Listing It by Owner

• You’ll avoid the seller’s commission fees that Bay State agents charge. The seller’s fees range from 2.5-3% of the sales price.

• You control all of the details when you sell as an FSBO. You can list when you want and direct all the marketing activities.

• A real estate agent must work with a number of clients during the week. As an FSBO, your only focus is your house. You can devote all your efforts to selling your property.

Cons of Selling Your House by Listing It by Owner

• Agents generally work with buyers who need mortgages. You’ll need to wait for buyers to apply for loans, open your house for appraisals, and then wait for the underwriter to make the final approval for the loan.

• You won’t have a professional agent to represent your fiduciary interests. You’ll be on your own when it comes to completing the legal paperwork and guiding your house through escrow.

• If you make any mistakes during the transaction, it could delay the closing. If you make major mistakes, you may end up in court and be on the hook to pay damages for an error, even when the mistake was unintentional. Understanding the closing costs when selling a home by owner helps you avoid some common mistakes.

Who Are Real Estate Agents?

A real estate agent is your legal representative who works on your behalf in a real estate transaction. They are your fiduciary, and they put you first over all other interests.

Real estate agents work for you to list and market your house. They negotiate for you when your house receives offers from buyers. Your agent also handles all the required paperwork.

Commonwealth laws require prospective agents to study coursework that covers contract law, real estate marketing, and other related real estate topics.

Applicants must pass an exam on the training materials before applying for a license.

There are a number of benefits to using a real estate agent to sell your house.

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

• Realtors assist you in setting a price for your property. They have exclusive resources that include a list of prior comparable sales in your neighborhood. These “comps” help you set a reasonable, but aggressive, price for your house.

• Your agent is your fiduciary and will use their training and experience to make sure your interests come first in the sales transaction.

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

• Your real estate agent’s commission is negotiable, but you’ll still pay in the range of 2.5-3% of the sales price in commissions for the agent’s representation. The average Realtor cost to sell a home is the most significant portion of the closing costs in Massachusetts.

• Your agent won’t be exclusive to your listing. A real estate agent works with a number of clients and must divide time and energy to represent each one.

• Real estate agents typically have clients who need to obtain a mortgage to purchase your house. This means waiting to have the buyer approved and waiting for the appraisal. And then, waiting for the underwriter to give the loan the go ahead.

How to Choose an Ethical Real Estate Agent?

There are a number of licensed agents in the Bay State. Start by confirming your prospective agents are licensed in the commonwealth.

Use the “Check an Occupational Board License” search tool on the Massachusetts Division of Occupational Licensure website.

Ask your neighbors who have recently sold or bought houses for their agent recommendations. Select agents who have listed and sold fixers for your prospective agent pool.

Look for real estate agents who are members of the Massachusetts Association of Realtors. Members of that trade group are affiliated with the National Association of Realtors (NAR).

The NAR and the commonwealth association take an oath of ethics to become members. The local associations also oversee member activities, and fine members who fail to follow their oath.

Members can also be suspended for unethical practices. Check the local Realtor associations within MA to see if Realtors on your prospective list have been fined or suspended for unethical behavior or business practices.