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Selling Your Home As Is l Pros l Cons l Options for Selling As Is l Making Repairs
Key Takeaways
- Selling as is indicates to buyers that the property is being sold in its current condition — without repairs or repair credits — and is priced accordingly.
- As is sales are typically used for homes in poor condition when the owners don’t have the time, money, or resources to fix them up.
- Sellers who sell their home in as is condition must follow state disclosure laws. Many buyers may also request inspection contingencies to find out a home’s exact condition.
What Is Selling As Is?
Selling “as is” means that you’re selling your home in its current condition, flaws and all. The buyer understands that you won’t make repairs or negotiate with them for repair credits.
“As is” homes are priced lower than other homes, reflecting the fact that you won’t pour any extra money into repairs. If you connect with the right prospective buyers, your home may sell quickly as they embrace the opportunity to score a deal.
If you want to sell your house fast for cash, Clever Offers is a great place to start. Clever will match you with a great local agent, who will get you fair offers from top cash buyers in your market. You’ll also get a free home price estimate, so you can compare the investor’s offer to what your house could sell for on the open market. Get cash offers from top local investors now!
You Still Have to Follow State Disclosure Laws
While selling your home as is may relieve you from making any changes, you still have to follow state disclosure laws.
Most states have specific requirements for what sellers are legally obligated to disclose to buyers. These typically include:
- The presence of lead paint
- Structural problems
- Defects in the plumbing, HVAC, or roof
- A history of flooding or infestation
In some states, as is home sellers may be able to avoid providing the standard disclosures if:
- The home isn’t owner-occupied
- Both parties agree that it’s being sold as is
If you misrepresent your house to the buyer, you could be held liable for recovery of damages based on fraud and deceit claims.
Buyers Could Still Request an Inspection Contingency
When selling your home as is, it’s important to keep in mind that prospective buyers are still entitled to request an inspection contingency.
Inspection contingencies let the buyer back out of your deal if an inspector turns up something unexpected. This leads to wasted time and a longer sales process, which is why as is home sellers typically seek buyers who are willing to waive their right to these contingencies.
As the seller, you can always decline the prospective buyer’s request for an inspection contingency — but doing so may drive possible buyers away and limit the number of offers you receive.
Should You Sell Your House As Is?
| ✅ Pros of Selling As Is | ❌ Cons of Selling As Is |
|---|---|
| Potential for a quicker sale, especially if your home attracts an all-cash offer | Possibly fewer offers and less attention from buyers, since no repairs will be made to the home |
| Saves the seller money upfront because no repairs need to be made | Likely to sell for less, especially if your home is in bad condition |
Pros of Selling As Is
Saves Time: When you sell your home as is, you don’t have to worry about waiting weeks or even months for repairs to be made. You can quickly list your home on the market without wasting any time at all.
There’s also a chance that your home may attract buyers who are willing to pay all cash. This will eliminate most of the steps in the closing process and help the transaction move swiftly
Saves Money on Repairs: Selling your home as is allows you to save money upfront beacuse you don’t have to make any repairs or improvements to your home.
The tradeoff to saving money on repairs is that your home will likely sell far below market value. Cash buyers will typically pay 60 cents on the dollar for homes that sell in “as is” condition.
Cons of Selling As Is
Fewer Offers: Homes selling as is will attract a smaller pool of buyers who are willing to take on the challenges of updating the property.
Most buyers will steer clear of homes selling as is since lenders typically won’t approve mortgages for homes that are fixer-uppers or in extreme disrepair. That might limit your potential buyers to investors, flippers, or “We Buy Houses” companies.
Lower Profits: Homeowners who sell their homes as is will net lower profits than they would in a typical home sale. The listing price you choose will mainly depend on the condition of the house and how much work will need to be done by the buyer to bring it up to standard once sold.
Options for Selling As Is
There are three main ways to sell your home as is:
- Listing on the open market
- Networking with investors or flippers
- Contacting “We Buy Houses” companies
In general, listing on the open market is the best way to get the most value for your home — and with the right real estate agent and market conditions, you may still be able to sell your home quickly.
However, your specific circumstances will determine which path is most advantageous for your home.
Below, we’ve broken down key considerations you can use to choose the best path forward for your as is sale.
List on the Open Market
| Open Market | Investors/Flippers | "We Buy Houses" Companies |
|---|---|---|
| Maximum value for your home | Less than market value for your home | Less than market value for your home |
| Close on your house in 30-60 days | Close on your house in two weeks | Close on your house in 7-10 days |
Your best option is usually to list your home on the open market — especially if your home meets minimum property requirements.
Minimum property requirements are standards set for homes and buildings by mortgage lenders. They are centered on:
- Safety
- Security
- Soundness
If your home has serious issues, a lender will not extend a mortgage offer. However, if your home meets the requirements, you may be able to draw more potential buyers to your home — leaving the door open for a higher offer.
There are two options available for marketing your home as is:
- Screen potential buyers by stating upfront that you plan to sell as is
- Get the broadest possible cross-section of buyers first — then disclose that you’re selling as is as part of your negotiation process
Being upfront with potential buyers will show you are transparent and honest about your home. It will also help you weed out unserious buyers, because you’re open about the condition of your home from the beginning.
You could even choose to get a pre-inspection report to lay all of your cards on the table. The report, which typically costs $350-500, could alert you to any issues or repairs that will need to be made to the home — which can be especially helpful for investors and flippers.
If you choose not to be transparent about your home’s issues, you could lose out on potential buyers or lose their confidence — especially if they find out they’re unable to take out a loan to buy your property. While it will allow you to attract attention to your home, keeping quiet may cause prospective buyers to back out of the transaction or remove their offer when they find out the truth.
Your best option is to talk to a real estate agent when deciding on marketing practices. Our friends at Clever can connect you with top-performing agents who can help you decide how to position and market your property.
Some Buyers Can Still Get a Loan
If the house is in serious need of repair, you may be in luck if the buyer uses an FHA-insured rehabilitation loan.
The FHA 203(k) loan allows buyers to finance the house and any needed or wanted repairs.
For the loan to be approved, the home must meet specific safety and livability standards. The lender can track and verify repairs when using the loan, which is why they are willing to lend to homes that otherwise wouldn’t be considered.
Network With Investors and Flippers
If selling quickly is your number one priority, connecting to investors and flippers is probably the best way to sell a house fast.
If you don’t know any real estate investors in your area, don’t worry! You can use websites like meetup.com to find real estate networking events, both online and in person. It’s always better to meet investors face to face if you can, but you can also network online by checking out their profiles to find their contact information.
However, before you connect with investors, we recommend touching base with a real estate agent. A qualified agent can help you understand current market conditions and how to position and market your home to buyers.
Some agents even specialize in working with investors, so they may be able to connect you with one of their clients.
If you know and understand the market and your situation, you can get multiple investors interested in your property and get them to bid for a higher price.
Contact a “we buy houses” Company
“We buy houses” companies are a distinct type of cash buyer. They are often networks of individual investors or local, independently operated franchises of a larger parent company who pay cash for off-market properties. Whatever your home’s condition, they will purchase it directly as is.
But there’s a major catch: in order for them to make a profit, they can give you only 65-70% of the actual value of your house.
You’re almost always better off selling on the open market, even if it means selling your house for well below retail price. When you attract multiple buyers who are willing to fix up your home, there’s the possibility that you’ll receive multiple offers that drive up the sale price.
But if you can’t afford the time it takes to list on the open market and your house is in decent shape, an iBuyer may be a better option than a “we buy houses” company. If you submit your information online, you can typically receive a cash offer within 24-48 hours — and iBuyers tend to offer closer to fair market value.
Most iBuyers want homes in good condition, but Redfin Now purchases homes as is. You can close on your house within 30 days of receiving an offer. The tradeoff is that your home will sell below value and you’ll owe the company a service fee.
Should I make repairs?
Making repairs before you list could dramatically increase your home’s sale price. But are they right for you?
The answer completely depends on your situation and whether you’re willing to put the time, money, and resources into making any changes or repairs to your home.
Minor repairs
| Pros of Making Minor Repairs | Cons of Making Minor Repairs |
|---|---|
| They're cheap — most projects cost around $500. | They may not net you more offers. |
| They don’t take too much time, typically a few days or a week. | They typically don't net you a higher property value. |
Investing in minor repairs doesn’t have to cost you a lot of time or money. These upgrades are typically cheap and easy to make — meaning you can do most of them yourself.
You could choose to:
- Paint the exterior and interior of your home
- Add new flooring
- Replace lighting fixtures
- Refinish the kitchen cabinets
- Upgrade your landscaping
And while all of these options can make your home more attractive to potential buyers, it’s not a guarantee for more offers. These upgrades won’t add any overall value to your home other than making it stand out.
Making major repairs
| Pros of Making Major Repairs | Cons of Making Major Repairs |
|---|---|
| Investing in major repairs could attract more buyers | Major repairs can cost thousands of dollars |
| Making major repairs could increase your property’s overall value. | Major repairs can take months to complete |
Homeowners who are weighing whether to make major repairs to their home should consider whether they have the time and resources to do so. These repairs are often costly and time consuming — meaning they can take weeks or even months to complete.
The most common types of major repairs made include:
- Replacing the roof
- Installing a new HVAC
- Fixing electrical wiring
- Repairing plumbing lines
Making some or all of these changes, depending on your home’s condition, could net you more potential offers on your home. The tradeoff is that you would have to put in the resources necessary to make changes.
If you don’t want to spend any money, there are still things you can do to give your home an edge. Making low-cost minor changes can help spruce up your home for potential buyers.
You could:
- Do some basic cleaning — dust, wash the windows, vacuum, or wipe down surfaces
- Remove trash and broken furniture
- Toss or donate any items that you don’t need or want.
All of these options can help brighten up your home at little to no cost other than your time.
Conclusion: Explore your options to get the best price.
Even if your home is in poor condition, it’s always worthwhile to explore all your options and get the best possible price.
Don’t feel pressured to take the first offer that comes your way — especially if they are trying to lowball you. Understand your market and establish a floor price you are willing to take. Confirm with a local real estate professional that the numbers you’ve come up with are reasonable, and stick to them.
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