Published
How much do you really lose? | Factors that affect your sale price | How to minimize losses
Selling a house as is can reduce the stress and cost of preparing your home for sale. However, there’s plenty to consider before making that decision.
Here’s how to figure out whether an is-is home sale is right for you — and the factors that affect your sale price.
What does it mean to sell a house as is?
Selling a home as is means you’re selling it in its current condition — whether it has costly issues or simply needs some freshening up.
However, buyers of as-is properties can still conduct inspections and request a credit or price reduction for undisclosed issues found by the inspector.
And you’ll still need to follow your state’s disclosure laws, which typically require you to inform potential buyer of the general condition of your home (including its systems and appliances) and any known issues (such as structural problems or water damage) with the property.
Options for selling as is include putting the house on market with a realtor or selling directly to a “we buy houses” company or iBuyer.
You’ll get the best outcome by exploring multiple options before making a decision.
⚡ Take the guesswork out of selling your house. Compare legitimate cash offers to the sale price you’d get with an agent. Simply tell us about your property, and get up to 10 cash offers from leading investors and iBuyers in our network. You can also request a professional opinion of your home value from a top local agent, with no obligation to move forward with an offer or a listing.
Get competing cash offers, plus a professional home valuation — no hassles, fees, or commitment
Pros of selling a house as is
- You don’t have to spend money on repairs.
- You can sell faster, especially if you work with a cash buyer.
- You may have a more convenient selling process, since you can avoid making repairs and negotiating over updates.
Cons of selling a house as is
- You’ll likely sell at a lower listing price to reflect your home’s as-is condition.
- There may be reduced interest in your home from buyers who don’t want a fixer-upper.
- Some potential buyers may have to withdraw if the unfixed repairs disqualify them from their loan.
The most typical case for selling a house as is is when your home needs extensive repairs that you don’t have the time, money, or energy to complete before listing.
However, selling as is could also be a good option if you need to sell quickly.
“If there is a time crunch (foreclosure or quick move), it might be best to take a cash offer and move on,” advises realtor Suzanne Seini of Innovate Realty. But “if you have the time to wait, it doesn’t hurt to test the market and try and get a premium for your home.”
A third scenario for selling as is is if your home needs some updating, but is otherwise livable.
“For cosmetic things like cabinets, countertops, etc., I absolutely say sell the home as is,” advises Los-Angeles-based realtor Sammy Lyon. “Fixing up a house does not necessarily have a dollar-for-dollar return on investment. My advice is to disclose the known issues and be prepared to give the buyer a credit for any major repairs.”
A final consideration for selling as is is if your market favors sellers.
“If the market is slow,” says Elisha Lopez, a licensed broker and owner of Ocala Realty World in Central Florida, “you may want to fix up the house to increase the number of potential purchasers. But if there is low inventory and high demand in your area, you’re going to be able to sell your home as is.”
How much do you lose selling a house as is?
Recent research from Porch found that, on average, fixer-uppers are priced 25% below the typical home.
However, actual losses (or gains) from selling as is depend on a few different factors:
- Who your buyer is
- Your home’s condition
- The local market
- Your selling timeline
- Your marketing and presentation
- Your realtor, if you choose to hire one
Factors that affect your sale price
The type of buyer
Most buyers prefer move-in ready homes, but a few types of buyers will purchase homes as is. Each kind of buyer has different motivations and purchase criteria that determine their final offer price.
Cash buyers
Cash buyers include local house flippers and rental property owners, as well as larger companies, like HomeVestors, that pay cash for houses.
Investors can often close in as little as 1–2 weeks, making them the fastest and most convenient of any as-is sale option. Investors will also buy properties in any condition.
However, they typically pay 70% or less of a home’s after-repair value (ARV).ℹ If your home’s AVR is $500,000, an investor might buy it as is for around $375,000.However, investors have grown a reputation for paying 70% or less of a home’s after-repair value (ARV).ℹ If your home’s AVR is $500,000, an investor might buy it as is for around $375,000.
“It’s true that investors can’t pay full retail price, but offering 70% of the after-repair value minus repair costs is on the low end in my market,” explains Bart Waldon of Land Boss in El Dorado Hills, California. “I aim to make reasonable cash offers, typically around 80–85% of the after-repair value.”
In fact, several investors we talked to will pay as much as 85% for a property if market conditions are right. It depends on the potential to add value by either rehabbing the property for a quick flip or letting it appreciate while making rental income over time.
» MORE: The best companies that buy houses for cash
iBuyers
iBuyers like Offerpad and Opendoor purchase homes at a slight discount to resell them on the open market.
These companies may be an especially appealing option for sellers wanting to avoid the hassles of a traditional home sale. They pay more than traditional investors — often within 10% of your home’s potential sale price — and offer flexible closing timelines of 8–90 days, depending on the company.
However, iBuyers have strict purchase criteria. They prefer homes in relatively good condition that they can resale with minimal investment. They also operate in a limited number of markets — mostly in and around major cities.
In exchange for the convenience of a fast cash sale, iBuyers charge service fees of around 5%. They also charge repair costs that can greatly reduce the final offer price — often by tens of thousands of dollars.
» MORE: The top iBuyer companies
Traditional buyers looking for a fixer-upper
Some buyers actively look for homes that need updating. They may want to save money by getting a home below fair market value, or they may be looking to transform a property with good bones into their dream home.
Take this example:
A longtime owner was downsizing and moving into assisted living,” recalls top-selling realtor Cynthia Cummins. “There was a lot of deferred maintenance in the home, but it was a legacy property located in one of the most prime neighborhoods in San Francisco.”
The target audience was likely to have enough money to take on a fixer-upper — especially one in a great location with “dream home” potential, she explains.
“The client had already interviewed two other agents, both of whom said to sell it as is,” notes Cummins.
She advised the owner to take an alternative route, which included doing some basic repairs, painting everything, and staging — all for about $75,000. Even with the number of repairs still needed, the home sold for $500,000 more than the previous realtors predicted.
The amount of work buyers are willing and able to take on can vary.
“If you need a full remodel or have a ton of deferred maintenance, buyers may have problems getting financing with their lender,” explains realtor Suzanne Seini. “So you may only be entertaining cash offers.”
It also may be harder to find an as-is buyer if your home is in a less desirable location or a market where home sales have slowed, especially if you’re reluctant to lower your asking price.
You’ll need to position your home based on your current market and what buyers are looking for in your area. This is when a real estate agent’s perspective can be particularly helpful.
» MORE: How to find a real estate agent
Your home’s condition
“Selling ‘as-is’ can mean one of two things,” says Elisha Lopez, a realtor based in Central Florida.
“It could mean the seller prefers not to make repairs, but there’s nothing really wrong with the home. Or, it could be referring to a complete floor-to-ceiling rehab.
In the case of a complete rehab, says Lopez, “the home would not qualify for standard financing and would only be available to cash buyers,” who typically pay below-market value.
However, “sometimes repairs are so expensive that it doesn’t make sense to do them,” notes Lopez. In those cases, selling a house as is may actually save you money, despite the likelihood of selling to an investor for a lower price.
When deciding whether to make repairs, says real estate appraisal expert Chris McGuire, “it’s crucial to evaluate the estimated repair costs and compare them to the potential increase in the sale price. If the repair costs outweigh the potential return on investment, it may be more advantageous to sell as is.”
“No matter how bad the home is, there is always a price point where a real estate investor will buy it,” says Matthew Coan, owner of Cash Savvy Home Buyers.
The local housing market
In highly competitive markets, the difference in sale price between turnkey homes and homes sold as-is may be negligible.
For example, research by Porch found that in cities like Boston, Phoenix, and Riverside, CA, fixer uppers sold for only 1–2% less than the typical home. In the most expensive markets, like San Francisco, homes that needed work command an average of $1.4 million (only 8% off the city’s median home price).
In less competitive markets, however, fixers may sell for less than half the price of updated homes.
“The profit you make really depends on the market you’re in,” says Lopez. “In Florida, for example, many sellers still see competitive offers on homes that need repairs.”
“In 2021, it was a seller’s market,” adds Seini. “Sellers could list anything and it would sell quickly at a good price, regardless of condition.” However, more recently, she’s had better success coaching clients to make cosmetic updates before listing.
“We recently helped a seller who had been on the market for two months with no offers,” explains Seini. “We pulled the home off the market, updated the flooring and paint, and added new staging. The home sold in less than 30 days over the list price with multiple offers.”
Marketing and presentation
“If part of your audience are end users who’re in the mood for a project but want to move in ‘as is’ for now, it’s a good idea to do some refreshing and staging to sell the dream,” recommends Cummins.
Refreshing the home could involve making minor repairs, painting, improving curb appeal, cleaning, or staging. It depends on your situation and what local buyers are looking for.
How you market your home also makes a difference. “Run away from agents who tell you they can sell it as a pocket listing, or who say they’ll find a buyer discreetly,” she cautions. You want your property to be made widely available to get the best offer.
Your selling timeline
Your ideal selling timeline can impact the way you sell and how much money you make.
If you need to sell fast for a quick move or foreclosure, you may want to take the best cash offer. But if you have time, listing on the MLS can help generate more interest in your home — ideally leading to competing offers and a higher sale price.
Your realtor (if you choose to hire one)
Your realtor can have a major impact on your sale price.
“Anyone can list a home for a lower price, but an experienced listing agent will have a pool of waiting buyers to pull from,” says Florida-based realtor Elisha Lopez. “A new listing agent who doesn’t have a pool of buyers waiting could compare the home to other homes in the same condition that recently sold and lower the sale price by 10–20%.”
Some agents may also have programs to help you make home improvements before listing and potentially sell for a higher price.
“At my brokerage, we offer a program called InnoEquity,” says Suzanne Seini of Innovate Realty. “The program enables homeowners to tap into their equity with no out-of-pocket costs and have pre-listing renovations done to their homes.”
Make sure you research several local agents before choosing a realtor. Look at their sales history, and interview them to understand their marketing approach, communication style, experience selling as-is homes, and knowledge of your local market.
👉 Get a top local listing agent, pay half the commission
How to minimize losses when selling as is
Consider the potential cost vs. return before making repairs
“Oftentimes, I have seen sellers pour money into a property just so they can sell for top dollar. The problem is, those sellers don’t always recoup their investment,” says Lee Harbaugh, a realtor based in Fort Worth, TX. “For example, spending $50,000 on new windows is not going to allow one to sell their home for $50,000 more than if they sold as-is. They might get an additional $5,000–10,000 at best.”
“On the other hand, spending $20,000 on kitchen upgrades will very likely get the seller an additional $20,000 on their sale,” continues Harbaugh. “The key is to understand what components of home upgrades buyers are willing to pay more for.”
“Updating surfaces like flooring and paint are generally worth it, whereas spending heavily on customized renovations may not pay off,” adds Jim Olenbush of Austin Real Estate.
Here are the estimated costs vs. return on investment of some common repairs and renovations.
Project | Estimated Cost | Expected ROI |
---|---|---|
Hardwood Flooring Refinish | $3,400 | 147% |
New Wood Flooring | $5,500 | 118% |
Insulation Upgrade | $2,500 | 100% |
Roofing Replacement | $12,000 | 100% |
Replacement Garage Door | $2,000 | 100% |
Basement Conversion to Living Area | $57,500 | 86% |
Fiber Cement Siding | $18,600 | 86% |
Closet Renovation | $6,000 | 83% |
Vinyl Siding | $18,300 | 82% |
New HVAC System | $7,000 | 80% |
Attic Conversion to Living Area | $100,000 | 75% |
Complete Kitchen Renovation | $80,000 | 75% |
Bathroom Renovation | $35,000 | 71% |
Kitchen Upgrade | $45,000 | 67% |
Vinyl Windows | $30,000 | 67% |
Add New Bathroom | $80,000 | 63% |
Wood Windows | $48,000 | 63% |
Steel Front Door | $3,150 | 63% |
Add New Primary Bedroom Suite | $172,500 | 56% |
Keep in mind that actual repair costs and the subsequent value added will vary by market and contractor, so before putting money into repairs we recommend taking a couple of additional steps:
1. Seek quotes from professional contractors and realtors
“Doing repairs is only sometimes the best play” says investor Dan Belcher. “I’ve seen it play out both ways.”
One interesting case he recalls was a client who needed to sell fast and couldn’t afford many repairs. The house needed a decent amount of work — including fixing a worn kitchen and outdated bathrooms.
“We weighed putting money into repairs versus listing it as-is,” says Belcher, “but the numbers showed that even with fixes, they wouldn’t recoup the investment through a higher sale price. So we went the as-is route, disclosing the home’s condition in detail and targeting investors and handyman types who are okay with a bit of work.”
“Ultimately, we got some solid offers to choose from,” says Belcher. “My advice is to run the numbers to see if upgrades will pay off in the end.”
“Getting quotes for repairs needed is not only helpful for you to decide whether or not to make the improvements yourself, but this will also give you a great negotiation tool to counter an offer that comes in below your list price,” adds realtor Sharlys Leszczuk.
2. Ask a realtor to run an analysis of your home potential sale price with and without repairs.
“Loop in a realtor to explore both options,” advises Belcher.
A local realtor can run what’s called a comparative market analysis to help you figure out your home’s current value vs. estimated value after making repairs.
By looking at what else has sold in the area, and for how much, they can help you evaluate your options and determine what repairs will get you the most money.
Be upfront about your home’s condition
Let buyers know from the start that you’re selling as is. This helps set buyers’ expectations when they view your home, and it can build trust.
Being upfront can also help you save time by attracting the right buyers and avoiding ones who aren’t serious about a fixer-upper.
You may want to pay for a home inspection before you list so buyers know the extent of needed repairs and issues. This report can also help buyers who plan to get financing, since some unfixed home repairs, like mold or termites, may disqualify buyers from loans.
Don’t underestimate the value of low-cost improvements like cleaning and decluttering
You don’t always need a ton of money to make an impact. “Sometimes all it takes is some new paint and a deep clean,” advises Seini.
“I worked with a client who inherited a home from a parent, recalls realtor Nathan Clark. “The home was in a great location, but unfortunately, the condition was less than ideal as the parents were hoarders. The client didn’t have time to do a complete rehab, and two other agents said they couldn’t sell it without the work being done. To make matters worse, the client only had a week to get the home sold and on a shoestring budget.”
Clark hired a junk removal company to declutter the home and had it professionally cleaned. He also did what he could to brighten the home with natural light and fresh paint. The all in costs were less than $2,000.
“In its original condition, the comparable sales indicated the home was worth about $300,000 and would take 30 days to sell,” explains Clark. “However, during the week the home was being prepped for the market we contacted hundreds of buyers in our database and had them drive by the home. When the home went live on the MLS, it sold for $350,000 within 48 hours.”
Cast a wide net
Most realtors (and investors, too) will advise listing on the MLS to attract the largest pool of buyers.
For example, DJ Olhausen is a licensed real estate agent and investor based in San Diego. In July 2023, he had a home seller contact him about purchasing her house for cash. Instead, he suggested listing it to see if she could fetch a higher price.
“The house smelled, was in horrible condition, and needed at least $70,000–100,000 in renovations to become fully livable,” recalls Olhausen. “I told my client that we could sign a short 14–day listing agreement in order to test the market, and that she could always take one of the offers she had in hand if we couldn’t find her a buyer. Her current and best offer from a flipper was at $515,000, and I was convinced we could get her over $600,000.”
Olhausen took professional photos, held open houses, and personally reached out to investors he thought might be interested. He listed the house on a Thursday afternoon and had 10 offers in hand by the following Monday. “By the time we were ready to review offers,” says Olhausen, “we had five offers over $600,000, with our top offer being at $675,000.”
Shop commission rates when working with a realtor
One way to maximize the proceeds from a house sale is by working with an agent willing to negotiate their commission. Working with a listing agent that charges a 1–1.5% listing fee, compared to the typical 3%, can save you thousands on your home sale.
But picking a low quality agent could do more harm than good — and you may not save as much as you could — so choosing the right agent is crucial.
» FIND A REALTOR: View our top low commission real estate agents and companies
Get competing bids when entertaining offers from cash buyers
If you’re on a tight timeline, you can typically sell faster by seeking cash offers directly from investors.
While many investors cap their offers at about 70% of a home’s estimated after-repair value, others offer more flexible solutions than a simple cash offer — enabling you to maximize your profits without any up-front investment.
For example, in a novation agreement, an investor will fix up your home on your behalf, then pay you out of the proceeds when it sells. The investor pays less upfront than if they purchased the house outright, and you get a higher sale price without sinking money into repairs.
With this type of deal, you can usually pocket up to 80–90% of your home’s market value, as opposed to the 70% typically offered by investors.
Seller financing, in which an investor pays you in installments, rather than all at once, is another option that can potentially net you a higher sale price.
No matter what route you take to selling as is, you’ll get the best outcome by seeking competing offers. You can do this on your own, with the help of a realtor, or through a cash offer service like Clever Offers.
Selling a house as is FAQ
How much do you lose by selling as is?
How much you lose by selling as is depends on the condition of your house, your local market, the buyer, and your agent’s negotiating skills. Here are factors likely to impact your as is sale.
Why should I sell a house as is?
You should sell a house as is if you don’t have the time or money to make repairs. Marketing your home as is can also attract cash buyers, who usually close much faster than traditional buyers. Learn more about selling your house as is, including how to save on your home sale.
Can you sell a house as is without an inspection?
Yes, you can sell a house as is without an inspection. An as-is home sale means the home buyer accepts the home in its current condition without repairs. The buyer might still include a home inspection contingency in the sales contract, which allows them to inspect the home and renegotiate terms or walk away from the contract if there are certain issues. Learn more about selling your house as is.
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: If your top priority is to sell a house quickly, consider selling to 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 makes sense. Learn more here.
Leave a Reply