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

‘As is’ means the seller wants to cover the legal responsibilities and leave any property condition-related matters to the buyer. That’s the basics, but there’s a bit more to the legal requirements.

So, how does selling a house ‘as is’ work in Rhode Island? A required step is making sure the listing and sales contracts have an ‘as is’ condition clause.

That officially lets the buyer know that the seller doesn’t agree to repair anything. The seller also doesn’t agree to pay the costs to have others do the repair or replacement work.

Yes, you can sell a home ‘as is’ in Rhode Island. However, there’s a catch.

Sellers need to fill out a disclosure statement that lets the buyers know of any known house defects that can impact the value or the health and safety of the buyer.

You must allow buyers to do their own due diligence to evaluate the property. That includes letting buyers hire professionals to inspect your house, if they choose to do that.

Rhode Island disclosure requirements involve several components. Some are between you and any professionals you might use, and one is between you and potential buyers. Let’s start with the latter.

Property Condition Disclosure

This disclosure involves the house and property. You’re required by law to share with the buyer any known problems, defects, or dangerous conditions with your house.

This must be a written form and needs to be signed by you and then by the buyer during the sales process.

There isn’t a standardized Rhode Island state form, but real estate agents typically use a form approved by the National Association of Realtors and the state organization affiliated with that professional trade organization.

Signatures on that form mean you’ve disclosed what you know and the buyer has read the disclosure.

Any risks associated with the list of items on the disclosure also need to be noted on the written form.

You’ll be required to itemize a number of details, including;

• Things that impact living conditions, like selling a house with asbestos, mold, fire damage, water damage, or radon levels above safe limits.

• Conditions of the property, such as selling a house without permits, or one with termites or foundation problems, failed septic, lead pipes or polybutylene pipes, or houses located in a flood zone or fracking area.

• Federal law must be met when selling a house built before 1978. That requires filling out a lead-based paint disclosure that is then given to potential buyers.

• No need to disclose a haunted house or bed bugs in writing, but you will need to supply the buyers with new smoke and carbon monoxide detectors within a set period of time after the sale closes.

You may have a full house and want to know if you can leave stuff behind when you sell your Rhode Island house ‘as is.’ The answer is yes, but with some conditions.

If you sell with a real estate agent, you’ll need to present the house in “broom clean” condition unless you state in the sales contract you’re going to leave stuff.

The buyer must agree to those terms on the written contract. The same applies when working with a Rhode Island real estate attorney.

If you sell your ‘as is’ house to an investor, typically you can leave anything you want behind for them to handle. You must also have the investor agree to those terms on the sales contract.

Agency Requirement

Another type of disclosure is the “agency requirement.” That’s a formal document that sets out the fiduciary arrangement between you and a real estate professional.

Fiduciary defines where the agent pledges loyalty. This is more than a team sports fan.

A hired fiduciary agent is required by law to represent you to the fullest of their professional training and experience. Your fiduciary can’t arbitrarily switch teams during a transaction.

Fiduciaries in Rhode Island can be real estate brokers, agents working under the direction of a broker, or an attorney specializing in real estate transactions.

If you decide to sell your house by yourself, you may also end up signing a fiduciary form when a buyer works with a real estate agent or with an attorney.

That document says you understand their agent is the captain of their team — and not your team. You won’t receive any fiduciary help from the buyer’s agent or their attorney in a transaction.

Their fiduciary works to get the best deal and terms for their client — not you.

When working with an RI real estate attorney to sell a home, the legal representative will make a formal document that includes details from the state legal requirements for a disclosure.

The type and number of required disclosures depends on the attorney you select to represent you as the seller.

You now have the basics of the disclosures down, and now need to consider, “Should you sell your Rhode Island house ‘as is’ or fix it up?”

Let’s explore the advantages and disadvantages of each option.

Pros of Selling Your House As Is

• You can sell your Rhode Island house fast when you don’t take time to make repairs. No waiting for workers to complete home repairs demanded by buyers after looking at inspection reports. This is particularly true when you sell to a buyer who doesn’t need a mortgage.

• You have the option of leaving your stuff behind — provided you’ve made all the proper disclosures. That saves time and the expense of hiring people to clean out the house.

• You can skip the mess of repair work. No searching for qualified contractors and supervising the work. Most importantly, you skip paying for repair bills.

• No picky buyer demands to fix things when the property inspector in Rhode Island finds an issue.

• You’ll skip the annoying neighbor reviews because ‘as is’ sales are less likely to have open houses.

• You’ll also avoid the hassle of disclosing what you discovered during earlier inspection reports contracted by other prospective buyers. You won’t know any more details than what you already know about the house when you sell ‘as is’ without the inspection process.

Cons of Selling Your House As Is

• The price you’ll get for your house won’t be as high. Repairs cost money and a potential cash real estate buyer in Rhode Island will negotiate for a lower sales price to cover those repair costs.

• The number of buyers for your home will be fewer. Only a small fraction of buyers want to buy a house that needs repairs. Depending on your local market, it may not be easy to find one.

By looking over the advantages and disadvantages and the typical closing costs for sellers, you’ll be able to answer the question, “Why sell a Rhode Island house ‘as is’?”

Two important questions to ask are, “How does selling a house ‘as is’ work in Rhode Island?” and “How do I go about selling my house ‘as is’ in Rhode Island?”

Fortunately, answering these questions is easier than filling out the state-mandated disclosure forms. Let’s explore some more details to find the answers.

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

Who Are Cash House Buyers?

The simple answer is they have cash and they want to buy investment homes in Rhode Island.

“Cash house buyers” is a term used to describe property investors in Rhode Island who focus on purchasing houses. It might be one person with cash or access to cash. It might also be a group of investors.

Selling a home to an investor is a speedy and easy way to sell an ‘as is’ property.

Investors might be interested in buying a home for rental income. Cash house buyers also look for people facing a number of challenges, including:

• Selling a house in disrepair
• Selling a home during divorce
• Selling an estate home
• Selling a house for job relocation
• Selling a house with taxes owed

Cash house buyers work with investor-friendly title companies in Rhode Island who have a history in handling ‘as is’ sales.

Pros of Selling Your House As Is Directly to an Investor

• Cash house buyers typically want a fast sale. Many, however, will work with you if you have special deadlines that require a delayed closing date.

• Investors and investment companies come with cash offers. Cash means eliminating appraisals and the underwriting required by mortgage lenders used by most non-investor buyers.

• While investors may be licensed, they typically don’t take traditional commissions like real estate agents or brokers. If you don’t use an agent and the investor skips the professional representation, you won’t pay any commissions.

• Many investors and investment companies absorb your closing costs. Those can be significant.

Cons of Selling Your House As Is Directly to an Investor

• Your price from an investor will be lower than if you sell on a traditional market at the normal market value. Investors build in a profit margin when purchasing houses. They want to be paid for their time and effort. They also have to consider the cost of fixing up the property when determining the offer they make.

• Another downside with investors is you don’t have professional representation. Nobody will be there to represent your fiduciary best interests. You’re flying solo.

Finding the Best Cash House Buying Company

Maybe you’re considering a cash house buying company as a selling option, but have no idea where to find them.

One simple way is the internet. Do a web search by using some basic terms like the ones listed below. That will give you a multitude of investors and companies to explore.

Some search terms might include:

• sell my house fast in Providence RI
• iBuyer companies in Providence RI
• cash house buyers in Providence RI
• we buy houses Providence RI
• sell my house fast RI

If you don’t live in Providence, replace it with your own city’s name.

How to Choose an Ethical Investor?

There are so many investors and investment companies to choose from. How can you find an ethical investor to request a cash offer from? Let’s begin with some easy research tools.

Investigate the person or company by using basic sources. These include the Better Business Bureau (BBB) and the Rhode Island Attorney General’s Office. Sounds hard, but it’s really not.

The Better Business Bureau has a state office and local branches in the major city centers in Rhode Island. Start big with the state office and then move to the locals.

The BBB lists complaints on a public forum. Use the search tool to look for potential investors. Or, make a call to the office when you’ve narrowed your investor list down to a few choices.

The RI Attorney General collects complaints from around the state. Give that office a call with your list to investigate in more depth.

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

If you own the house you’re selling, you don’t need to use an agent or investor. You can sell your own home yourself to whoever you want.

Attorneys and people acting under a lawyer’s direction in managing things like guardianships or estates can also sell a house directly without agent or legal representation.

To sell your home successfully on your own, it’s important to first find your home value. By understanding what your property is worth, you can set a price that’s attractive to buyers while still getting fair compensation.

Where Can You List a House For Sale by Owner?

• The internet features a number of websites to advertise ‘for sale by owner’. Some are free while others charge a nominal fee for service.

• Flat-listing-fee brokers offer a for-fee service that puts your property on the Multiple Listing Service. This allows licensed real estate agents to see your listing.

• A professional-looking sign is another way to market your house. Signs typically have the best success in high-traffic areas.

Pros of Selling Your House by Listing It by Owner

• Real estate commissions for listing a house with an agent in Rhode Island run between 2-3% of the selling price. A buyer’s agent charges the same amount. You won’t have to pay a commission to the listing agent when you sell your house by owner. However, you’ll still pay 2-3% to the buyer’s agent.

• You are your own boss. You move at your own speed and you do all of the deciding.

• FSBO sellers can sell to non-investors who generally offer more for the house compared to investor buyers.

Cons of Selling Your House by Listing It by Owner

• FSBO sellers don’t have an advocate for their fiduciary interests. Nobody will be there to oversee the procedural work such as reviewing the closing costs when selling a home by owner and negotiating them with the buyer for you.

• Unless you know what you’re doing during the sales process, you can make mistakes that cost you time and money. Failing to fill out disclosure forms correctly or wording ‘as is’ clauses correctly, for example, can also mean future legal challenges.

Who Are Real Estate Agents?

Ocean State real estate agents offer their education, skills, and experience to assist you in selling your ‘as is’ house.

Rhode Island issues Letters of Good Standing (and Certificates of Licensure) to real estate brokers and salespeople. State regulations for both include initial and ongoing real estate education.

Your agent may work in a large firm or out of a small office as part of an affiliate supervised by a broker.

Agents using the term “Realtor” belong to the state branch of the National Association of Realtors.

That means higher standards of professionalism and meeting additional requirements above and beyond state regulations for real estate agents or brokers.

When investigating potential agents, it’s important to ask a few basic questions, including:

• Do you work alone or as part of a team or partnership? The answer to this question means you’ll work with the agent directly or with an assistant — or someone new every time you move forward with the sale.

• What fees do you charge for your services? RI agents can charge a fee for various services you might think are covered as part of the general commission payment.

• What specific things do I receive as part of each service? A contract means you know what specific services you’ll receive and the agent knows what you expect.

Rhode Island law requires agents and brokers to put the answers to the last two questions in writing.

Expect to pay additional fees for things like a marketing analysis and media advertising for your listing.

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

• Realtors have access to the Multiple Listing Service (MLS). This allows them to research closed sales and compare your home’s features to the ones of the houses sold recently in your area. This helps you receive top dollar, even for an ‘as is’ sale.

• Fiduciary duties are an important part of professional real estate services. Using a Realtor makes sure you come out on top by protecting your rights in the sales transaction.

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

• The average Realtor cost to sell a home in the Ocean State is between 5-6% of the closing costs (split between the buyer’s and seller’s agents). That’s a huge amount of potential profit from your sale. It’s also in addition to the other closing costs in Rhode Island.

• Agent sales normally move slower than other sales transactions. Agents also typically work with clients who must obtain mortgages to buy. Mortgages mean delay due to applications, appraisals, and underwriting.

How to Choose an Ethical Real Estate Agent?

Even though your agent is licensed and is working in an established real estate office, it’s still a good idea to check the resume and do some background research on your Realtor.

Probably the most important step in choosing an ethical agent is to first sit down with them for a long interview to chat about real estate.

This talk allows you to see if they’re personable, interested in your house, and if they’re knowledgeable about the real estate business.

Ask your agent if they work as a separate corporation or part of a team or partnership. If they do, vet the corporation and the others as you did with the primary agent.

You may end up with a partner or team member doing some of the work on your home sale. Sometimes busy agents farm out all your work to staff. If they’re not skilled, you lose out.

Traditional background research includes checking with the local RI Association of Realtors for complaints against the agent or the real estate team.

Other background investigations include an online trip to the BBB and local consumer websites where clients can complain about bad service or agent problems.

You now have the basics of ‘as is’ sales under your belt.

You know about required disclosures. And you can sit down to sort advantages and disadvantages of the various approaches to selling a house in Rhode Island.

The only thing left to do is start printing up your for-sale signs or making contact with investors or agents and moving forward with your plans to sell your Ocean State house.