How to Sell a House As-Is

Are you interested in selling your home but dreading potential repairs? Depending on your real estate goals and local market, selling your home “as-is” could be a cost-effective and convenient solution.

Listing a house “as-is” means marketing a property in its current condition without the promise of repairs, upgrades, or extensive cleaning.

It’s a common misconception that selling the home as-is means that the seller completed zero repairs, renovations, or upgrades before listing the home. This isn’t quite true.

Really, “as-is” tells the buyer and the buyer’s agent that you are unwilling to make any further changes to the home. Since repairs and upgrades are often used as a valuable negotiation tool during the home selling/buying process, listing a home as-is is a tactic that should be strategically considered.

Should you sell your home as-is or fix it up?

Listing a house as-is doesn't inherently mean the home is run down or falling apart. Rather, it serves as a practical solution for homeowners struggling with properties that may require attention they do not have time for.

Besides having a home that needs many repairs, there are numerous reasons someone may choose to list their home as-is.

“If a home seller finds themselves in a situation where they cannot pay for the costly repairs or renovations of their home, then it is a good idea to sell as-is. At the same time, if the market calls for it, a home that is in perfect condition can also be listed as-is and generate offers above the asking price," said Amanda Aspey, a Broker with Century 21 Community.

Whatever your reason, selling your home as-is can provide a convenient and efficient home sale, allowing you to move forward without the burden of costly repairs or time-consuming negotiations.

To help you make this important decision, let’s weigh the pros and cons of selling a home as-is:

Pros of Selling a Home As-Is:

• No Pressure to Repair: Having your real estate agent list your home as-is makes it clear to buyers and buyer’s agents that repairs and renovations will not be a part of the negotiation process. You can even let your real estate professional know that you are not willing to entertain offers that include requests for repairs or renovations, resulting in zero pressure to renegotiate.
• Speedy Sale Process: Homes listed as-is often attract investors and home flippers, who can bypass traditional mortgage financing and help you close on a home quicker. By attracting buyers who will pay in cash, you set yourself up for a speedy sale process.
• Fewer Costs: Repairs and renovations are costly, and if you’re buying another home while trying to sell, you likely have many other costs to worry about. Listing your home as-is can help you avoid fixing things that won’t pay off in the end.

Cons of Selling a Home As-Is:

• Limited Buyer Pool: If your as-is home needs serious repairs, buyers may find it difficult to secure a mortgage and make an offer. Buyers seeking to use certain loan programs, such as the VA loan, have strict requirements for home conditions and may not be positioned to make an offer on your as-is house.
• Fewer Offers (Potentially): As mentioned before, as-is homes attract more cash buyers and fewer buyers who need lending to purchase a home. Listing your home as-is can reduce the overall offers you receive.
• Low Expectations Leading to Lower Offers: Although an as-is home does not necessarily mean that it needs extensive repairs or upgrades, the perception is still there. Sellers who list their homes in this manner often see lower offers, as buyers often factor in the perceived risk and cost of addressing any issues with the property.

Of course, all of these listed pros and cons of selling a home as-is are subject to market conditions. For example, high demand or a shortage of inventory can change buyer perceptions, potentially resulting in more offers and ones above the listing price.

Furthermore, homes located in sought-after neighborhoods or on prime properties can sometimes be listed at higher prices regardless of their condition. However, generally, it's reasonable to anticipate lower offers from buyers who are anticipating additional costs of repairs.

How much money do you lose selling a house as-is?

There is no straightforward answer or method to predict how much you lose when selling a house as-is. However, you should know that listing your home as-is can limit certain buyers from making an offer. For example, certain mortgage programs require a passing home appraisal to approve the loan. The more offers you receive, the more power you have to negotiate the selling price. If your home needs repairs that will not pass an appraisal and you are unwilling to make them, you are limiting buyers from purchasing your home.

“Although it isn’t always the case, homes sold as-is do typically sell at a lower price. If you are selling your home as-is in a slow or even moderate market, you can view it as trading a potentially lower sale price for not having to complete costly repairs or renovations. Whether you “lose money” will depend on how much you bought the home for, when it was purchased, how much it still owed on the mortgage, and the current market conditions,” Aspey said.

Your most important ally will be a real estate agent. If your objective in selling your home as-is is to make a profit, a real estate professional can help you decide how much to list your home for. They can also provide industry-specific insights and honest feedback on whether your home is a good candidate for an as-is listing based on your selling goals.

How to Sell a Home As-Is

Although the exact process will vary depending on your individual situation, you should review these steps to help navigate the as-is selling process:

1. Consult a Trusted Real Estate Agent: From offering a checklist of tasks to ensuring your property is presented effectively, an experienced agent can help navigate the process of selling your home as-is with confidence.
2. Obtain a Home Inspection: Although you may not intend to make any repairs or renovations, having an inspection ready for buyers will help them make a speedy and informed decision.
3. Fill out a Seller Disclosure Form: More importantly, accurately complete your disclosure form. A seller disclosure statement discloses the seller's knowledge of the property defects. While being upfront about major damage or repairs to the home is essential for building trust with potential buyers, it is also required by law to ensure transparency and protect both the seller and buyer. Your real estate agent can inform you of what your state requires you to disclose.
4. Keep The House Clean & Tidy: Any real estate professional will advise that any home going up for sale–listed as-is or not—be kept clean and tidy throughout the process. This helps investors recognize the property's potential and assists prospective homebuyers in envisioning their lives within the space.
5. Strategically List Your Home: Price your property too high, and you’ll scare prospective buyers. Set your price too low, and you will end up with a lowball offer.
6. Consider Your Ideal Buyer: Chat with your real estate agent about how they plan to market your property based on its as-is status. With typical as-is buyers being investors, flippers, and cash buyers, an experienced agent will know how to reach these specific buyer demographics through compelling images and property descriptions.

Depending on the real estate climate in your area, an as-is home may be a hard sell. If selling the home as-is is your ultimate mission, keep an open mind about the sale price and be willing to pivot to ensure you maximize your chances of a successful sale.