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

‘As is’ condition means the homeowner is selling the house exactly the way the buyer finds it on the day the sales contract is signed.

The seller will not make any improvements, repairs, or replacements in an ‘as is’ listing.

The state-approved South Dakota purchase contract doesn’t have a formal ‘as is’ condition clause. Sellers, however, can let buyers know it’s an ‘as is’ listing other ways.

Yes, you can sell a home ‘as is’ in South Dakota. But how does selling a house ‘as is’ work in South Dakota?

The first step in selling requires the owner to complete the residential property condition disclosure. There are many specific items that need to be disclosed under South Dakota law.

Let’s go over them.

Homeowners listing a house for sale must complete a residential property condition disclosure required under South Dakota law § 43-4-38.

This disclosure isn’t a warranty. It also isn’t a property inspection report. It’s an inventory of material facts about the house. The seller simply shares what they know about the house.

Filling out the disclosure doesn’t require hiring a home inspector or a contractor. The buyer completes the form from their own experience based on living in the house.

Selling a house in a flood zone, a house with water damage (current or repaired) or experiencing standing water inside or on the property for more than 48 hours, all require disclosures.

Homeowners selling a home located on or adjacent to federally protected wetlands also need to report that property detail.

Selling a home with asbestos and selling a house with lead pipes require owners to disclose those conditions.

The presence of radon gas in the house must be disclosed to prospective buyers. If your house has a radon mitigation system installed, that must also be noted.

Mold, toxic or radioactive materials, urea formaldehyde foam insulation, and past or present production or use of methamphetamines in the house — all need to be disclosed to buyers.

Homeowners selling a house with fracking or mining operations on the property must disclose that, in addition to any home water sources contaminated by that mining.

The disclosure also requires owners selling a house with a failed septic system, or any sewage drainage or leaking into any adjoining waterways or lakes, to note that on the form.

Selling a house with foundation issues must be disclosed. This includes any visible cracking in the house or on hard surfaces surrounding the residence.

Homeowners selling a home with unpermitted work must disclose that work.

Permitted work needs to include details for the permits, as well as confirmation of the final approval of the work by local or state inspectors.

Selling a house with fire damage or smoke damage needs to be disclosed.

Homeowners must disclose selling a property with insect infestations that might include bed bugs or selling a house with termite damage.

If the infestation has been treated, this must be noted, along with the date of the treatment.

Owners selling a house with polybutylene pipes need not disclose that fact on the form. Haunted houses also don’t require any disclosure.

Homeowners selling a house with lead paint must disclose that on the state form and also complete the federal lead paint disclosure.

All houses constructed before 1978 are presumed to have lead paint and need to complete both lead paint disclosures.

You can leave stuff behind when you sell your South Dakota house ‘as is’ by following specific contract stipulations that require a separate bill of sale for the items.

All other items must be removed from the house before the closing. This includes any trash or garbage.

“Should you sell your South Dakota house ‘as is’ or fix it up?” Only you can answer this question.

The amount of time and energy you have to do the repairs, or to locate contractors to do the work, is a key factor in making this decision.

A review of the pros and cons of selling ‘as is’ may help you decide to fix or simply list.

Why sell a South Dakota house ‘as is’? There are a number of benefits to selling as a fixer.

Pros of Selling Your House As Is

• You’ll avoid the headache of finding someone to do repairs and then supervising the repair work. You’ll also avoid paying for the repair materials, even if you do the work yourself.

• ‘As is’ sales close quickly, particularly if your buyer is a South Dakota cash house buyer. Cash buyers eliminate the need for the buyer to qualify for a loan and the house to appraise at the sale price. This saves time and speeds the closing up.

• Buyers using a South Dakota home inspector use reports to ask the seller to make home repairs. Selling ‘as is’ lets the buyer know that you won’t be making repairs, and you won’t be paying to have them done. By selling ‘as is’, you won’t waste your time on stressful negotiations over this.

• Many ‘as is’ buyers allow you to simply walk away without removing unwanted items from the house. Sellers, however, will need to follow the laws to create a bill of sale to do this.

Cons of Selling Your House As Is

• You won’t receive the same sales price as a turnkey property. Reviewing the estimated closing costs for sellers can help you decide whether to accept an offer.

• You’ll limit the number of your potential buyers when you sell as a fixer. Most homebuyers look for a turnkey property or one that requires a minimal amount of work.

Once you’ve decided to repair your house or list it as a fixer, the next question you need to answer is, “How do I go about selling my house ‘as is’ in South Dakota?”

There are a number of ways to list your house, let’s begin with selling to a cash real estate buyer in South Dakota.

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

“What happens when you sell your house ‘as is’ in South Dakota?” The first method is selling your property to a real estate investor. Let’s look at who they are and how they can help you.

Who Are Cash House Buyers?

Cash house buyers are a company or an individual real estate investor who buys real estate. They have cash to invest, or they have access to quickly borrowing cash from private lenders.

Private lending doesn’t have the wait time of traditional mortgages, so investors can move quickly to buy and close sales.

Cash house buyers look for potential investment properties in South Dakota that need repair. These homes are then rehabbed and sold to other buyers.

Some South Dakota property investors focus on buying rental properties.

When you sell your house to an investor, the cash house buyer typically handles all the details of the sales transaction so that you don’t have to hire a real estate agent.

Investors look for:

• families selling an estate home
• property owners selling a house in poor condition
• couples selling marital property before divorce
• seniors looking to downsize
• workers selling a house for job relocation
• property owners selling due to a pending foreclosure
• homeowners selling a home with taxes owed

Investors generally use South Dakota investor-friendly title companies that have experience working with cash sales. This speeds the transaction closing.

Pros of Selling Your House As Is Directly to an Investor

• Sales to a cash house buyer typically move quickly and close within a short period of time.

• Since investors use cash to buy your house, there’s no need to wait for buyers to qualify for loans. You also won’t have to endure appraisals, and ‘as is’ investors typically don’t require home inspections.

• You won’t be on the hook to pay the typical seller’s commission fees that real estate agents charge. The average real estate commission in South Dakota is 5-6% of the sales price. Though this amount is split between the buyer’s and seller’s agents, even half of it can be a tremendous savings for the home seller.

• Closing costs are a major deduction from the seller’s sale proceeds. Investors typically pay both buyer and seller closing costs.

Cons of Selling Your House As Is Directly to an Investor

• The major downside to selling to an investor is the sales price. Investors generally don’t pay market prices. Cash house buyers consider the cost of repairs and potential resale profit when making an offer, so the seller receives less money for the property than they could if they repaired it themselves.

• An investor sale typically eliminates the real estate agent, so the seller won’t have the expertise and experience of a professional agent helping them to make important decisions. Sellers who do their research to vet potential investors, however, shouldn’t have issues since investors typically don’t stay in business long if they don’t operate ethically.

Finding the Best Cash House Buying Company

Locating an investor is easy. You can find a number of investors by using the internet and a few basic search terms.

For example:

• we buy houses Aberdeen SD
• sell my house fast Aberdeen SD
• cash house buyers Aberdeen SD
• sell my house for cash Aberdeen SD
• iBuyer companies Aberdeen SD

If you live in a rural area, search by using the largest city near your village or town.

Look specifically for investors who have been in business for at least three years. This allows time for the investor to understand the industry.

That time period also allows the investor to develop a list of satisfied clients who can serve as referrals.

Once you have a few investors who look promising, the next step is to vet your list of potential investors.

How to Choose an Ethical Investor?

Look for an “About Us” page on the investor’s website. This should contain information that identifies the investor and provides some background about them or their company.

If this information isn’t listed on the webpage, it’s time to select other investors.

Reputable investors are transparent about sharing business qualifications so sellers can use this information to vet them.

Check the local branch of the Better Business Bureau (BBB) website.

The BBB mediates disputes between businesses and customers, and any complaints against your prospective investors should be available on the BBB website.

Also locate local online consumer websites for reviews of the investors on your list. If you’re finding a number of complaints, that’s a sign to select a different investor.

If you don’t have the time or energy to do this vetting, you can get up to five cash offers for your house by submitting a single request to HouseCashin.

HouseCashin pre-screens its partner companies and refers your request for offers to vetted investors for you. Request cash offers on your property now.

The next option for selling a house in South Dakota is to go it alone. A “for sale by owner” listing is known as FSBO. Let’s explore that option now.

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

Selling your home through FSBO allows you to take full control of the selling process — from setting the price to closing the deal.

When taking on the task of selling your house by yourself, it’s important to know how much it is worth. For this purpose, a home worth calculator can be a handy tool to give you a quick estimate of your property’s value.

Once you have that figured out, you can focus on marketing your home. One of the most challenging tasks for FSBO sellers is locating buyers.

Where Can You List a House For Sale by Owner?

There are a number of for sale by owner real estate sites. These typically don’t charge a fee to post a listing, but some of the advanced features may be paid.

The easiest way to alert potential buyers that your property is for sale is to put a sign on the lawn.

In areas with little traffic, however, you may wait a long time before anyone notices your house.

You’ll put more eyes on your listing if you create a video of your house and post it on free websites such as YouTube.

Then, share a link to it in your listings on FSBO sites and posts on social media in groups for buying and selling properties.

You can also use limited services of a real estate brokerage who will list your property on a database used exclusively by Realtors.

This will alert buyers’ agents of your listing. In this case, you won’t have to pay a commission to the brokerage.

There are several compelling reasons to list your home as an FSBO.

Pros of Selling Your House by Listing It by Owner

• You’ll save the seller’s real estate commission fees when you list yourself. That’s a huge savings.

• You’re in charge of everything. You set the calendar for the sale and for the closing to meet your personal needs.

• Unlike an agent serving multiple people at the same time, you have only one client — yourself. You can spend all your time focused on making sure your house sells.

Cons of Selling Your House by Listing It by Owner

• You’ll need to field offers from buyers who require a mortgage to buy your house. Loans delay the sale while the mortgage is processed through the lending system. This process can take weeks to complete, or longer.

• You’re on your own in the transaction without a professional to represent your fiduciary interest.

• You may make a mistake in the listing, disclosure, or during the sales process. A small mistake may delay your sale closing date. A large mistake may mean your buyer walks away from the sale. If the mistake is major, you may end up in court. When you operate as your own listing agent, it helps to understand the FSBO closing costs.

The last type of listing we’ll cover in this guide is listing with a real estate agent.

Who Are Real Estate Agents?

Real estate agents in the Mount Rushmore State can assist you in your home sale by completing the required legal paperwork, marketing your house, and in fielding offers from buyers.

Agents also guide you in handling the paperwork required during the escrow and title process after you accept an offer.

Your agent is your fiduciary and must put your interests first in the real estate transaction.

Prospective agents in South Dakota must take coursework and pass exams on that material before they can qualify for a state license.

Agents using the title of “Realtor” are members of the South Dakota Association of Realtors, the local branch of the National Association of Realtors (NAR).

Realtors take an oath to act ethically and to place your interests first. The association regulates members to ensure they meet their ethical obligations.

Those who fail to follow the oath are removed from the membership rolls.

There are a number of advantages in hiring a real estate professional.

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

• Realtors have access to a proprietary database of comparable sales known in the industry as “comps”. Comps assist buyers in selecting an asking price that matches prior sales of comparable houses. Comps include size of the house, location, and the home’s features and finishes.

• A licensed real estate agent is a trained professional with experience in marketing homes, so sellers receive the best price for their property. They also understand the legal requirements in selling a home in South Dakota.

Not everything is rosy when using an agent. You also have to balance the disadvantages to using a real estate agent.

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

• While real estate commissions are negotiable, sellers typically pay between 2.5-3% of the sales price for using an agent. This amount can vary with your location in South Dakota and the type of representation contract you sign. The final sales price also helps determine your commission charge. The average Realtor cost to sell a home is the lion’s share of the closing costs in South Dakota.

• You’ll be just one of many clients for most real estate agents. Fixers generally don’t have the largest buyer pool, so your listing may not be the first priority on your agent’s to-do list.

• Real estate agents typically work with buyers who need mortgages to purchase your property. This means waiting for the buyer to qualify for a loan and your property to appraise and meet the underwriter’s approval before the sale can close.

How to Choose an Ethical Real Estate Agent?

In order to have the best representation for your listing, it’s important to select an agent with experience listing and marketing ‘as is’ properties.

It’s also helpful to select an agent with experience selling homes in your neighborhood. Note the agents for homes listed for sale in your neighborhood and note the homes that sell quickly.

Ask family and friends for their recommendations. Interview those agents to see if they’re a good match for you and your property.

Vetting agents is an important step in locating an ethical real estate professional.

The first step in vetting is to confirm the agents listed on your list of prospects have a valid and active license to sell real estate.

Use the South Dakota Real Estate Commission online verification system to confirm an active state license.

The South Dakota Association of Realtors’ local boards supervise member agents. Check to see if any agent on your list of prospects has been reprimanded by any local board.

Once you’ve narrowed your list of prospects, sit down and interview each one in the house.

Ask each agent to develop a written plan to market your home, and select the agent with a solid sales record and the best plan.