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

Selling a house ‘as is’ in Missouri can be done, but you’ll need to use a sales contract that includes an ‘as is’ condition clause.

‘As is’ means the seller won’t do any improvements to the property. The house is sold as the seller offers it — defects, damage, problems, and issues included.

Yes, absolutely. You can sell a home ‘as is’ in Missouri.

But before we get into the details of answering the question, “How do I go about selling my house ‘as is’ in Missouri,” we need to introduce a few important elements of the sale.

The first element we’ll look at is the legal disclosures the Show-Me State requires from sellers.

A real estate disclosure is a legal document that tells prospective buyers what you know about your sale house.

This includes any material faults and defects, dangers or potential dangers, and any health risks associated with the property.

Your real estate agent, an agent representing potential buyers, or a Missouri real estate attorney representing the potential buyer, may ask you to complete a disclosure form.

You don’t need to hire an inspector to take a look at the house, but you do need to disclose any known defects that could reduce the value of the house or endanger the new owners.

The disclosure form doesn’t ask you to share details such as a haunted house, bed bugs, or if there was a death in the house.

While some states require the seller to disclose any fire damage and the presence of polybutylene pipes, Missouri does not.

It’s always advisable, however, to honestly share this information with potential buyers when you know these conditions are present in your house.

A fracking disclosure also isn’t required by Missouri law, but it’s a category to be completed on the Realtor disclosure form.

Here’s a review of the things you must legally disclose to potential buyers in Missouri:

• The presence of a solid waste or demolition landfill site or radioactive and hazardous materials in the house or on the property must be disclosed.

• Federal laws require you to let potential buyers know about the presence of lead-based paint. Buyers have a legal 10-day period to test for lead paint. This can be extended if both parties in the sale agree.

• Missouri law requires sellers to disclose registered sex offenders living near your sale house — if you’re aware of that fact.

• State laws also require you to let buyers know if your house was or has ever been used as a methamphetamine lab. This disclosure must also note any meth convictions for any occupants of your house — past or present.

• Some localities require owners of a non-occupied house to obtain a certificate of occupancy. This certificate documents the personal chain of ownership for the property. Check with your local government to see if it’s required for your sale, particularly when you have a non-owner occupied house.

The disclosure used by agent members of the professional trade organization Missouri Realtors — a branch of the National Association of Realtors (NAR) — asks for more information about your house, including:

• Details of the home’s basic electrical, heating, plumbing, and cooling systems
• Selling a house with a failed septic system or sewage problems
• Any roof, gutter, or exterior finish issues and past or present termite damage
• Selling a house without improvement permits for additions and alterations
• Presence of radon gas, mold, lead pipes and lead paint or asbestos
• Selling a house with foundation problems, unstable or fill soils, flooding, and disclosing the location of a house in a flood zone
• Water damage to the house
• Presence of any above- or below-ground cisterns
• Selling a house with the presence of electromagnetic fields
• Required membership in a homeowner’s association

There’s a place on the Realtor’s disclosure where you can decline to fill out the form. Just check that box if you don’t wish to disclose anything other than the legal requirements.

The Missouri statute of limitations for real estate disclosure contracts is five years.

You can leave stuff behind when you sell your Missouri house ‘as is’, but you need to disclose that you’re doing that. Your buyer also needs to agree to accept your stuff.

Should you sell your Missouri house ‘as is’ or fix it up? The only way to answer that question is to sit down and make a couple of lists of advantages and disadvantages.

We’ll start out with some basics for your lists.

Pros of Selling Your House As Is

• Selling a house ‘as is’ is faster than fixing and then selling. Repairs take time, particularly with local supply delays of some materials your repairs may require.

• You’ll avoid having to vet repair people and pay the bills for those repairs. You also won’t need to supervise workers to make sure they show up to complete the contracted work.

• You’ll be able to skip the open houses with your neighbor looky-loos coming to visit.

• Many times, you can skip the professional home inspections, especially when you sell to a Missouri cash home buyer.

• You’ll avoid reports done by a real estate inspector in Missouri for prospective buyers. Once you have the inspection report, it’s a known defect or problem. ‘As is’ buyers understand that the house is sold without any repairs or warranties.

Cons of Selling Your House As Is

• Finding buyers sounds easy, but you may have major problems locating people who want to buy ‘as is’. The more prospective buyers, the more opportunities for your sale.

• Additionally to the seller closing costs, you’ll end up with a lower sales price when selling ‘as is’. Someone like a cash real estate buyer in Missouri understands they’re on the hook to pay for repairs and they’ll offer accordingly.

Why sell a Missouri house ‘as is’? Use the starter list of comparisons above and add advantages and disadvantages that apply to your personal situation.

When you factor in the time savings and the cost savings, you may find selling a home in Missouri ‘as is’ offers the best way for you to sell.

Many sellers forget to factor in the regular cost of mortgage payments (if any), insurance, monthly utilities, and maintenance during the time you’re doing the repairs. Those payments add up quickly.

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

When you sell your house to an investor, you need to know a few things about who investors are and what they offer.

Who Are Cash House Buyers?

Missouri property investors have cash and look for real estate investment opportunities, especially houses in ‘as is’ condition. There are some advantages to selling a home to an investor.

Cash buyers look for owners selling marital property during divorce, selling real estate in probate, selling a house for job relocation, and those selling a damaged house.

Missouri real estate investors also look for homeowners selling a house with taxes owed.

Cash buyers search for investment property in Missouri for a number of other reasons. Some focus on buying rental properties, and others want a house that they’ll buy cheap, refurbish, and sell at its full market value.

Cash house buyers usually work with investor-friendly title companies in Missouri. These firms know the ins and outs of dealing with cash sales.

Pros of Selling Your House As Is Directly to an Investor

• Selling to a cash house buyer means a speedy closing. They want to move quickly to get into the house to do the rehab.

• Investors bring cash. That means you can skip the time it takes to do a formal appraisal for a mortgage lender. It also means you don’t need to wait for an underwriter to decide whether or not to fund your buyer’s purchase.

• When you sell your house yourself, and the investor doesn’t use an agent, you’ll skip paying real estate commissions. That can be a significant saving.

• Investors typically pick up the bill for closing costs.

Cons of Selling Your House As Is Directly to an Investor

• Your offer from an investor won’t be market value. Investors discount the repair costs and their profit margin when making an offer.

• You’ll also be on your own to make sure your interests are protected. Licensed real estate professionals are trained to represent your best interests, but you won’t have one in this transaction. You can actually hire one, but it’s uncommon in this type of sale because you’ll have to pay the agent a hefty commission on top of making a discount for the investor.

Finding the Best Cash House Buying Company

Where do you find these cash house buying companies?

The easiest way is to use the internet. Use a few basic search terms to find companies. Then narrow your search to companies in your area by using the location of your house.

If the home is located in a rural area, also use the largest nearby city as a search term. For example:

• iBuyer companies in Springfield MO
• Cash house buyers in Springfield MO
• Sell my house fast Springfield MO
• We buy houses Springfield MO
• Sell my house fast Springfield MO

How to Choose an Ethical Investor?

Finding an investor isn’t hard, but finding an investor with a strong sense of real estate ethics requires some time to research.

Before you request a cash offer, check the business history of the investor. Look for at least three years of solid investing. Ask for recommendations from prior sellers to investigate.

Check the Better Business Bureau (BBB) and the Missouri State Attorney General’s office for any prior complaints or legal actions against the investor or the investment company.

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

Before we get into the details of listing by owner, let’s answer the question, “How does selling a house ‘as is’ work in Missouri?”

If you sell your house yourself, sell to an investor, or work with an agent, the steps are pretty much the same.

• Listing. This step asks you to fill out a listing form and the disclosures.
• Promotion. All about advertising and promoting in this step.
• Offer and contract. Here you’ll field offers, decide on the best, and sign a contract.
• Title and escrow. A title search looks for any problems such as a lien. Escrow handles the money exchange for the transaction.
• Closing. This step is the final one. You sign the final documents and give the keys to the new owner. Unlike some states, no attorney is necessary during this step.

When listing by owner, you’ll need to handle all of these steps. However, one of the first things you need to do is figure out your current home value.

Knowing what your home is worth helps you set a competitive price that attracts buyers while ensuring you get a fair deal.

Where Can You List a House For Sale by Owner?

The most basic step in listing a house ‘for sale by owner’, known as an FSBO, is using a sign on the property. That may bring you calls, but there’s no guarantee the callers are qualified to buy.

In a fast-moving market, your sign may bring a ton of calls. In a slow-moving market, your sign will just sit in the yard season after season.

It’s a good idea to distribute information on your house listing everywhere you can. Some suggestions:

• ‘For sale by owner’ real estate sites offer a place to contact potential buyers who have access to the internet.

• Use social media to post about your property listing. Don’t forget to feature nearby amenities. Your house may be a fixer, but the surroundings might be wonderful and attractive to potential buyers. Record a video showing your property, upload it to YouTube, and add it to your posts on social media.

• Put out notices about your listing in the neighborhood. Your neighbors may have friends or family they want to see move into your house.

• Contact large local employers. The HR departments at these companies might have transferred employees looking for a house during the job relocation. Provide those departments with a copy of your listing.

Pros of Selling Your House by Listing It by Owner

• You skip Realtor commissions on the selling side. You also skip the commission on the buyer’s side when you sell to someone who doesn’t use an agent (although, it’s rare, so you’ll likely still have to pay the buyer’s agent).

• You control the sale, including closing dates and exact terms of the contract.

• You can market to everyone — investors, non-investors, those using an agent and those without professional representation. This expands your potential buyer pool.

Cons of Selling Your House by Listing It by Owner

• You don’t have a professional to represent your best interests. You are on your own in every step of the selling process.

• You are the point person for everything. You’ll need to be aware of ‘for sale by owner’ seller closing costs. Failure to meet legal requirements can potentially void your sale. Worse, failure to follow the law could mean court challenges and fines.

Who Are Real Estate Agents?

Real estate agents are professionals who guide you through the sales transaction. They’ll wrangle the listing, marketing, and assist through the escrow and closing processes.

Missouri agents must be licensed and be supervised by a real estate broker. State licensing mandates passing education courses and an exam before any licenses are issued.

The Show Me State has specific regulations guiding agents and brokers. These include representing clients with “good faith, loyalty, and fidelity.”

Realtors also have access to all the transaction forms. These forms have been vetted by legal professionals to make sure your home sale meets all the Missouri laws.

Some other important considerations about agents:

• Some work as a partnership or a team. If you sign up with a team, you may have more than one agent working with you.
• Agents sometimes have assistants who handle the paperwork. These assisting agents must also hold real estate licenses.

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

• Realtors have access to a comprehensive listing of prior sales and prices. This research base means they can price aggressively and get the best price for your house.

• Agents have a fiduciary responsibility to represent you first. Your best interests come first with your agent, who is skillful in negotiating the best terms of the deal with your buyer.

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

• Missouri real estate agent commissions fall within the national average of 5-6% to pay agents on both sides of the transaction — seller’s and buyer’s. The Realtor costs when selling a house mean your closing costs in Missouri increase with the agent commissions.

• Agent sales are usually slower than sales that don’t involve real estate professionals. Sales brought by agents typically involve buyers who need mortgages to buy a house. Lenders require property appraisals and time to underwrite these loans. This can add weeks to the closing time.

How to Choose an Ethical Real Estate Agent?

Real estate is like any other business field. There are quality agents and there are those who aren’t as ethical.

The only way to weed out the agents you don’t want to do business with is to do research. Some tips to sort through the stack of agent advertisements include:

• Asking for a resume. Make sure it includes recommendations from people involved in past transactions. Some agents have professional listing portfolios with all this documentation done up in a fancy presentation binder.

• Confirming those recommendations. Don’t take the word of the agent or a fancy portfolio. Follow up to see what the recommendations say in person about the prospective agent.

• Checking with people who wrangle agents. This includes the Better Business Bureau (BBB) and the Missouri Attorney General’s Office to see if the prospective agent has been involved in questionable dealings in the past.

• Looking for a “Realtor.” Only members of the National Association of Realtors (NAR) (and the state affiliate) can use that title. It means the agent has additional training above and beyond what the state requires. The NAR has a code of ethics for members. Bad behavior can mean sanctions or suspension. The association will even withdraw a membership for an agent for frequent violations of the rules.

You have a house. It needs work. And now you have some options for selling. We’ve explored disclosures, your options for selling, and the pros and cons for each approach.