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

When a seller offers a house ‘as is’ to buyers in Tennessee, it means the purchaser receives the house exactly as originally found.

The property owner doesn’t make any warranties or representation about any condition related to the house or the grounds.

The seller doesn’t want to replace or repair anything that’s absent or in disrepair.

Tennessee doesn’t have a formal ‘as is’ sales contract or an ‘as is’ condition clause on the standardized sales contract.

Yes, absolutely you can sell a home ‘as is’ in Tennessee!

Even though the formal sales contract in Tennessee doesn’t have a clause or a special contract to sell ‘as is’, the seller can do something to make it clear the house is sold without warranty.

The seller simply states, “The seller makes no representations about the condition, and makes no warranties or guarantees about the property in this sale”.

That statement should appear on the listing and sales contracts and on the disclosure statement for the house to be viewed as an ‘as is’ sale.

Tennessee code requires most sellers to complete a written disclosure statement. Sellers who fail to complete the document face cancellation of the sale.

Buyers can also sue for damages when the form isn’t completed and given to them.

Tennessee doesn’t have a standardized legal disclosure, but Realtors use a form approved by their trade organization.

Members of the Tennessee Association of Realtors, a professional trade group affiliated with the National Association of Realtors, have developed a standardized disclosure form.

This form was developed by members of the association and state real estate attorneys. Many non-association member agents also use the same form.

Even if you don’t use a licensed real estate agent in the sales transaction, Tennessee law still requires you to present a written disclosure to the buyer.

All houses constructed before 1978 must disclose the risk of lead paint during construction or remodeling. There are specific forms for this disclosure provided by Tennessee and the federal government.

The formal disclosure requires comment on various systems and property details, including:

• selling a house with wood-destroying organisms, termite infestations and damage, fire damage, or toxic mold.

• property owners selling a house that has experienced flooding or has water damage from another water source. Sellers must also share the details of any nearby flood zones and flood insurance requirements for the property.

• the presence of exterior insulation and finish systems (EIFS), sometimes called “synthetic stucco”.

• homeowners selling a house without permits for additions or modifications or other alterations that fail to meet state and local building codes.

• selling a house with asbestos, lead pipes, radon gas, or contaminated soil. If the house has a failed septic system, plumbing problems, or foundation issues, those must be included on the disclosure form.

• owners selling a house that has been contaminated by methamphetamine. Tennessee law requires sellers to disclose that fact. If you’re unsure if that classification applies to your house, the state has an inventory of contaminated properties where you can confirm the status of your home.

• selling a house with a contaminated water supply should be noted on the disclosure. This contamination can come from fracking (hydraulic fracturing) or from other sources.

Polybutylene pipes aren’t specifically listed on the disclosure, but sellers should disclose those to be totally transparent with the buyer.

Bed bugs and haunted houses aren’t listed on the disclosure form, but selling a house with either one should probably be shared since these might decrease the value of the house.

Some ‘as is’ sellers have personal property they want to leave with the house.

You can leave stuff behind when you sell your Tennessee house ‘as is’ as long as you note that on the listing and disclosure forms. The seller must also agree to accept the personal items.

Creating a compare-and-contrast list helps you to decide if you should sell your Tennessee house ‘as is’ or fix it up.

Pros of Selling Your House As Is

Why sell a Tennessee house ‘as is’? The advantages include:

• You won’t need to locate reliable home repair companies to do the updates or renovations. And there’s no need to supervise the workers at the property when you sell ‘as is’.

• You can sell your Tennessee house fast when you sell to a cash buyer who wants to purchase ‘as is’ houses.

• You’ll avoid the time and effort spent with home inspectors and the negotiations with a buyer over who will pay for any repairs listed on the Tennessee property inspector report.

• ‘As is’ sales generally don’t require a professional home inspection. Any inspection done by prospective buyers needs to be shared with all future interested buyers. You’ll avoid this mandatory disclosure when the inspections aren’t done.

• ‘As is’ buyers typically allow you to leave unwanted items behind. This saves time and clean-out fees.

Cons of Selling Your House As Is

The disadvantages of ‘as is’ selling include:

• Your offers won’t be as high as if your house was turnkey. ‘As is’ buyers subtract the cost of repairs from the sales price. Evaluating the offers against the seller’s closing costs helps you decide to accept the sale price or wait for another offer.

• You’ll need to find a special kind of buyer. This can be difficult when you sell ‘as is’ since the majority of buyers don’t set out to purchase a fixer.

When deciding to repair rather than sell ‘as is’, don’t forget to factor in the hidden costs.

Hidden costs are any mortgage payments, utility fees, and insurance payments that must be paid during the time spent repairing. These must be subtracted from the cash you receive from the sale.

These hidden costs can be high and may influence you to simply sell ‘as is’ and fast to a company that buys houses in Tennessee.

So now you’re wondering, “How do I go about selling my house ‘as is’ in Tennessee?” There are three main ways to sell your house in The Volunteer State.

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

Before we get into the details of selling your house to a real estate investor, let’s explore more about cash buyers.

Who Are Cash House Buyers?

Cash house buyers do business buying and selling properties. They have cash or access to quick hard money loans to buy investment homes in Tennessee.

Apart from house flipping, cash buyers are also interested in purchasing rental properties cheaply. That’s why they look for homes in bad condition that can be repaired.

Real estate investors in Tennessee look for people who:

• are selling a house for a job relocation
• have a house with past due property taxes
• are selling a damaged house
• facing a foreclosure and want to avoid it
• are selling a house in a divorce situation
• are selling a house to downsize
• are selling property under probate
• are selling a house with taxes owed

Cash house buyers typically use a local investor-friendly title company in Tennessee with experience in handling cash sales. These companies make the transactions move quickly and smoothly.

Selling your house to an investor has both advantages and disadvantages.

Pros of Selling Your House As Is Directly to an Investor

• Investor sales are generally quick sales, although cash buyers will work with sellers if they prefer a longer closing calendar.

• Investors typically make cash offers. That means you don’t need to wait for traditional lenders to fund a mortgage. Appraisals, inspections, and underwriting aren’t typically part of a cash sale.

• A cash house buyer generally skips using a professional real estate agent. If you forgo using an agent and the buyer also represents themselves, you won’t pay any real estate agent commission fees. That’s a significant savings at closing.

• Investors also generally pay the closing costs for both buyer and seller. That’s another major savings for the seller when the title and escrow costs and all the related small fees are covered by the buyer.

Cons of Selling Your House As Is Directly to an Investor

• Investors’ offers will typically be under the market value of your house. The price reflects the cost to repair damages or update the house and the investor’s cost of doing business.

• You won’t have professional representation to guide you in an investor sale. You’ll need to do all the work to make sure your best interests come first in the sales transaction. Investors who fail to operate honestly and fairly, however, rarely stay in business for long.

Finding the Best Cash House Buying Company

Fortunately, locating a cash house buyer is as easy as going on the internet. Use your favorite browser and enter a few search terms to find investment companies in your area.

Narrow your search down to your locality by using your town or city. If you live in a rural area, select the closest city to your sale house.

Here are a few keywords to use:

• sell my house fast in Memphis TN
• we buy houses in Memphis TN
• cash house buyers in Memphis TN
• iBuyers in Memphis TN
• sell my house for cash in Memphis TN

Locate the “Our Company” or “About Us” page on the website. That should provide information about the professional background for the investor or the investment company.

If the company fails to identify any owner or principal partners, you probably want to look for other companies or investors.

How to Choose an Ethical Investor?

Before you request a cash offer on your house, take some time to do some research about the investor or investment company.

Ask potential investors for a list of satisfied clients. Talk with several on the list to learn about their experiences with the investor.

Ask to interview prior clients who had houses in your geographic area.

Check the local branches of the Better Business Bureau (BBB) for complaints registered against your prospective investor.

If the BBB listing has numerous dissatisfied clients, keep looking for new investors.

Make sure your prospective investor has a minimum of three years in the industry with positive reviews for every year of operation.

Search online by using the name of the investor or company and the term “reviews” to bring up any comments.

The next sales method to consider is going it alone and selling by owner.

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

When you represent yourself in selling, you’ll need to know what happens when you sell your house ‘as is’ in Tennessee. This includes finding buyers, advertising, and promoting your house.

You can start the process by finding your home’s market value. Use our home worth calculator to get an approximate market worth in your current local market. Keep in mind that if your property requires repairs, you’ll need to deduct their cost from that value.

But to get a precise estimate, you can hire an appraiser or a real estate agent just to order a comparative market analysis from them as a separate service.

Typically FSBO houses with a short repair list sell faster than those with a long list — or houses with major repair issues.

Reach out to contractors and cash buyers for homes requiring major renovations for the quickest sale.

Where Can You List a House For Sale by Owner?

Send out snail-mail postcards announcing your listing. Neighbors may have family or friends who have interest in moving into the neighborhood.

Place your house with a flat-fee online real estate brokerage opening you access to the local multiple listing service (MLS).
This service shares your listing information with Realtors representing local buyers. You’ll pay a fee for this.

List your house on the best FSBO websites. These websites offer a way to present and promote your listing on the internet. Most are free, but some charge a nominal fee.

Place a sign on your property to attract buyers. This works best for houses located in well-trafficked areas.

Pros of Selling Your House by Listing It by Owner

• Tennessee listing agents earn 2.5%-3% of the sales price. When you take charge of the selling side of your sales transaction, you save that amount at closing time.

• Selling your home in Tennessee by owner puts you in charge of the timetable and all the sales details.

Cons of Selling Your House by Listing It by Owner

• Most buyers will come with an agent, so you’ll be on the hook to pay an agent commission for their side of the property sale.

• Many buyers will also need a mortgage loan to buy. That means applications, appraisals and underwriting, and all the delay that’s required for each step in the process.

• Licensed real estate agents have a fiduciary duty to you to prioritize your best interests. Working alone puts that responsibility on you alone.

• Listing and marketing your home without professional representation could end up badly when required deadlines are missed or laws aren’t followed. Mistakes mean delay, and errors can put you in court where you may end up being sued for damages.

It helps to review the ‘for sale by owner’ seller closing costs to determine if you want to accept the responsibility of taking charge of the entire sales process on your own or hiring an agent.

Who Are Real Estate Agents?

Professional real estate agents are experts in the field of buying and selling property.

Real estate agents promote and make an advertising plan to sell your house. Most importantly, agents find qualified buyers.

Your agent will guide you through the required paperwork and the sales process by using their training and expertise.

Agents make a fiduciary pledge to their clients to represent their best interests during the property transaction. That means your agent puts you first in all stages of the sale.

Tennessee requires agents to hold a license and work under the supervision of a licensed broker.

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

• Seasoned agents have experience in listing and marketing houses. The Realtor’s access to real estate tools includes a list of prior home sales. This ensures you’re getting the highest possible sales price for your house.

• Professional agents make a fiduciary contract to represent your best interests. Agents know the laws and will prioritize your interests above all others in the transaction.

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

• Your closing costs will reflect the average Realtor cost to sell a home. The Volunteer State commissions run 5%-6% of the sale price and are paid by the seller. That’s agent commissions for both buyer’s and your agents’ services combined. While real estate commissions are negotiable in Tennessee, they will still be a major portion of your closing costs in Tennessee.

• Agent-assisted sales may take longer to complete compared with cash buyer sales. Broker previews and open houses not only add time, but also add to your stress to ready your house before each event.

• Most Tennessee agents represent buyers that need a mortgage loan to purchase your house. This means delay in waiting for the appraisal and loan underwriting, even when buyers come to the sale prequalified by a lender.

How to Choose an Ethical Real Estate Agent?

The Volunteer State has a large number of real estate agents offering professional service in all parts of the state. Choosing an ethical agent includes doing some basic research.

Ask your friends and family members for recommendations. Look for agents with experience in marketing ‘as is’ houses.

Check the local board of the Better Business Bureau (BBB) for any complaints filed against your prospective agent. It’s time to look for another agent if you see a number of complaints.

Look for professional endorsements. An agent using the title “Realtor” belongs to the Tennessee Association of Realtors, a state trade group affiliated with the National Association of Realtors.

This professional group requires members to follow a code of ethics, and the association enforces those rules with fines, suspensions, and removal from the group.

Consult the Tennessee Realtors website to look for formal complaints. Focus on the Realtor boards in the region of your sale house.

The Tennessee Real Estate Commission also regulates agent actions. Check this commission for any complaints on prospective agents.

Ask for recommendations from the prospective agent. Review the list of prior clients and contact several to discuss the quality of the service the agent provided in those transactions.

Look for comments on review websites. Vet the reviews to see if you see a recurring complaint that might influence you to continue your search for another agent.