How Much Do You Lose Selling a House As-Is? Learn the Truth

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  Written by Steve Nicastro

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  Edited by Jenny Rollins

How Much Do You Lose? | 3 Things That Impact Your Sale | How to Save | FAQs

You probably won’t earn as much money selling your house as-is as you would with a traditional sale. But exactly how much money might you lose?  

There’s no one size fits all answer. Your house’s condition, your local market, and your agent’s negotiating skills will all affect your sales price and profits.

Here’s how you can figure out how much you might lose by selling your home as is and how to maximize profits. 

Our partners at Clever Offers can help you sell your house as-is while maximizing profits. Clever matches you to a local realtor, who will bring you as-is, cash-only offers from top cash buyers in your area.

You’ll also get a free home valuation to compare the cash offers to what your home is worth. Get cash offers from top local buyers now!

How much do you lose selling a house as is?

There’s no simple way to put an exact number on what as-is sellers might lose in a sale. Losses (or gains) depend on the condition of your house and the local market. 

Selling a house as is saves you money because you don’t have to make repairs, but you should expect to sell your home for below its fair market value.

Buyers, including investors and companies that buy houses for cash, expect your home to cost less because of the repair costs.  

If your property is in good condition, it might sell for a few thousand dollars below the fair market value. But if your property requires major repairs (roof replacement, flood, or fire damage), it could sell for tens of thousands of dollars less.

As-is home sale example

Let’s say a realtor determines your home is worth $500,000 in the current market. But your home needs a new roof and HVAC system costing $30,000. 

A home buyer might order an inspection, calculate the estimated cost of repairs, and then lower their offer price to $450,000. The home buyer will use the money they save to make those repairs.

In this example, you’d save $30,000 by not having to make the repairs. But the house would sell for $50,000 less, which means you would lose $20,000.

Why investors pay less for as-is homes

Investors typically pay 70% or less of a home’s after-repair value (ARV), the home’s worth after the repairs and improvements. This means a $500,000 home might only sell for $375,000.

That 30% loss of your home’s ARV lets the investor make a profit when they flip the home. It can also offset other unknown costs and variables, like other repair issues or if the home takes longer than expected to sell.

Homes that need minor repairs will likely sell for a price closer to their ARV. Cosmetic fixes like painting or maintenance issues like leaky toilets are cheap and quick to fix. But profit-driven cash buyers will still try to get the lowest selling price possible. 

» MORE: Full list of companies that buy houses for cash

What impacts your as-is sale?

The condition of your home

The biggest factor impacting your as-is sale proceeds is your home’s current condition. If your home is in good shape and only needs minor repairs, it will cost less to fix it up and appeal to more buyers. 

But homes in poor condition might only appeal to investors and house flippers, who pay 70% or less of the home’s ARV.

The local housing market

Homes in hot seller’s markets usually sell for more than homes in cold markets. You might get a better price on the open market if you live somewhere with lots of buyers and limited available housing. 

You can determine whether your market favors sellers by checking key data online.

• Months of housing inventory: How long would it take to sell all houses currently listed for sale in your market if no new listings go live? Less than five months of inventory indicates a seller’s market. 
• Average time on the market: How long does it take for sellers to receive an acceptable offer and go under contract? A period of 30 days or fewer indicates a market favoring sellers.
• List-to-sale ratio: Divide the sale price of a home in your market by its initial listing price. Ratios above 100% mean that homes are selling for more than the listing price.

You can find this information on various sites like Zillow, Realtor.com, and the National Association of Realtors. Or you can get more detailed information from an experienced local realtor. 

Selling to an iBuyer

iBuyers like Offerpad and Opendoor pay close to fair value. Also, they can close in a few weeks – much faster than the two or three months it may take to sell on the open market. But they only buy homes in good condition in limited markets, so iBuyers are not an option for everyone. 

Selling to a cash home buyer or investor 

Cash buyers will buy properties in any condition. They pay less than iBuyers, but they are the fastest and most convenient of any as-is sale option.

Next steps

Find a local realtor to help you figure out your home’s current value, estimated repair costs, after-repair value, and a local market update. An agent can help you consider your options and determine what will get you the most money. 

Our friends at Clever can connect you with top agents who can help you compare cash offers from local buyers, cash buyers, and investors.

How to save on your as-is home sale

Connect with a local realtor

Here are three potential financial benefits of working with an agent in an as-is sale. A local realtor can:

1. Make repair recommendations based on the market 

Only a local real estate expert can look at recently sold homes in your neighborhood and know which repairs and improvements are worth making (or skipping). 

For example, if most homes selling in your market have newer roofs or HVAC systems, an agent might recommend you replace them. Or if prospective buyers in your market don’t care about the age of major components, you can avoid incurring those costs.  

A realtor can also point out smaller cosmetic repairs or updates with the highest return on investment. And they’ll tell you if pre-listing expenses like home staging are worth the cost. 

» LEARN: Most important repairs to make before selling

2. Connect you to local contractors 

Experienced realtors have a large network of contractors and repairmen who can repair your house for a good price. 

Having a list of affordable contractors is a huge benefit as you make repairs to get your home ready to sell.    

3. Negotiate your contract 

A listing agent negotiates repair requests and credits after the buyer’s home inspection. 

After a home inspection, a buyer might ask for repairs, a closing cost credit, or a lower sale price – even if you’ve listed your home as-is.

A good realtor knows how to handle these requests, analyze the contract, and negotiate in your favor.

Use an agent-matching service

An agent-matching service figures out what kind of agent you need and then connects you to top local realtors that can help.

Unlike personal referrals or open houses, agent matching services can help you save thousands on commissions. So even though your home may sell for less in as-is condition, you can still save on selling expenses.

Clever Real Estate has a pre-negotiated 1.5% listing rate, which can save you thousands on agent commission. There’s no obligation to move forward with any agent you’re matched up with. If you don’t have a realtor yet, it’s worth starting your search with Clever.

Related reading

Selling A House As-is: A Guide What does it really mean to sell a house “as-is” and what are the pros and cons? Find out here. 

The Most Important Repairs to Make Before Selling Some repairs and improvements carry a much higher return on investment than others. Learn which repairs to make (or skip) before listing your home for sale. 

Companies That Buy Houses for Cash Revealed If your top priority is to sell a house quickly, you’ll want to consider a company that buys houses for cash. View your best choices here. 

How Much Will an Investor Pay for My House? It’s no surprise that investors generally pay less for houses than regular buyers. But there are some situations when selling to an investor could make sense. Learn more here. 

Selling a house as is: FAQs