What does it mean to sell as-is? | How much money could I get? | Pros | Cons | Options for selling as-is | Making repairs | FAQs
Key Takeaways
- Selling as-is means you’re selling your home in its current condition — without repairs or repair credits — for a lower price.
- As-is sales are typically used for homes in poor condition when the owners don’t have the time or resources to make repairs.
- Sellers who sell their home as-is must follow state disclosure laws. Buyers may request inspection contingencies to discover a home’s exact condition.
What is selling as-is?
Selling “as-is” means 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. This is because the seller doesn’t spend money on repairs that would add value to the house. The lower price may help the home sell quickly to a buyer looking for a deal.
How much could I get selling my house as-is?
How much you could get selling a house as-is depends on who you sell to.
You could sell to a ”we buy houses” company, but you’ll likely receive only 50%–70% of your home’s after-repair value. You could also sell to an iBuyer, which is a company that makes near-instant cash offers on houses. iBuyers tend to pay closer to fair market price, but not all homes qualify for an offer. These companies operate only in select markets and only purchase homes in good condition.
To get the most money selling your home as-is, sell to a traditional buyer on the open market and work with a local real estate agent.
If you want to sell your house fast for cash, Clever Offers is a great place to start. Clever will match you with a 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 cash offers with what your house could sell for on the open market. Get cash offers from top local investors now!
Should I sell my house as-is?
| ✅ Pros of selling as-is | ❌ Cons of selling as-is |
|---|---|
| You could sell quicker, especially if your home gets a cash offer. | You might get fewer offers because you didn’t make repairs. |
| You save money upfront because you don’t spend money on repairs. | Your home will likely sell for less, especially if it’s in bad condition. |
Pros of selling as-is
You save time: When you sell your home as-is, you don’t have to wait weeks or even months for repairs to be completed. Instead, you can quickly list your home on the market.
You could also close faster if your home attracts a cash buyer. Accepting a cash offer eliminates most of the steps in the closing process and helps the transaction move swiftly.
You save money on repairs: Selling your home as-is allows you to save money upfront because you don’t have to make repairs.
The tradeoff to saving on repair costs is that your home will likely sell far below market value. Cash buyers typically pay 60 cents on the dollar for homes that sell as-is.
Cons of selling as-is
You get fewer offers: Homes selling as-is attract a smaller pool of buyers who are willing to take on the challenge.
Most buyers steer clear of homes selling as-is since lenders typically don’t approve a mortgage for a home that’s a fixer-upper or in extreme disrepair. That might limit your potential buyers to investors, flippers, or “we buy houses” companies.
You get a lower profit: Homeowners who sell their home as-is net lower profits than they would in a typical home sale. The asking price mainly depends on the condition of the house and how much work the buyer will need to do to bring it up to standard once sold.
What are my options for selling as-is?
There are three main ways to sell your home as-is:
In general, listing on the open market is the best way to get the most value for your home as-is — and with the right real estate agent and market conditions, you could still sell your home quickly.
However, your specific circumstances will determine which path is right for your home.
We break down key considerations to help you choose the best option 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 in 30–60 days | Close in two weeks | Close in 7–10 days |
Usually, your best option is 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. These standards focus on:
- Safety
- Security
- Soundness
If your home has serious issues, a lender won’t extend a mortgage offer to a buyer. However, if your home meets the minimum property requirements, a buyer could get a mortgage offer. This opens the door for more potential buyers — and for higher offers.
You have two options for marketing your home as-is:
- State upfront that you plan to sell as-is
- Get the biggest pool of potential buyers first, then disclose that you’re selling as-is during negotiations
Being upfront with potential buyers shows that you’re transparent and honest about your home. It also helps you weed out unserious buyers.
You could even get a pre-inspection report to give more information to potential buyers. The report, which typically costs $350–$500, states any needed repairs and issues with the house. This report can be especially helpful for investors and flippers.
If you choose to not be transparent about your home’s issues, you could lose the confidence of potential buyers — especially if they find out they can’t get a loan to buy your property. While this strategy allows you to attract more 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.
Some Buyers Can Still Get a Loan
- If your house is in serious need of repair, a lender won’t offer a conventional loan to a buyer. However, a buyer may be able to get an FHA-insured rehabilitation loan.
- The FHA 203(k) loan allows buyers to finance a house and any repairs under a single mortgage.
- For a lender to approve the loan, the home must meet specific safety and livability standards. The loan is backed by the government, and the lender can track and verify repairs. For these reasons, a lender is willing to give a loan for a home that they otherwise wouldn’t consider.
When deciding on marketing practices, your best option is to talk to a real estate agent. Our friends at Clever can connect you with top-performing agents who can help you decide how to position and market your property.
Network with investors and house flippers
If selling quickly is your number one priority, connecting with real estate investors and flippers is likely the best way to sell your house fast.
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 viewing investors’ profiles to find their contact information.
Before you connect with investors, we recommend touching base with a real estate agent. Qualified real estate agents can help you understand current market conditions and how to market your home to more buyers. If you can get multiple investors interested in your property, you can have them bid for a higher price.
Some realtors even specialize in working with investors, so they may be able to connect you with one of their clients.
Contact a ‘we buy houses’ company
Whatever your home’s condition, a “we buy houses” company will purchase the house as-is in a hassle-free way. A “we buy houses” company is a distinct type of cash buyer. These companies are often networks of individual investors or local, independently operated franchises who pay cash for off-market properties.
But there’s a major catch: in order for “we buy houses” companies to make a profit, they typically offer only 50%–70% of the after-repair value of your house.
You’re almost always better off selling on the open market with a real estate agent, even if it means selling your house well below retail price. If you attract several buyers, there’s a possibility you’ll receive multiple offers that drive up the sale price.
But if you need to sell quickly, comparing offers from multiple cash buyer companies is a convenient way to help you get the fairest price possible. To start comparing, try Clever Offers.
Our friends at Clever Real Estate will match you with an agent who can collect offers from cash buyers in your area and give you a free home valuation report. The report will tell you how much your house could get on the open market compared to cash buyer offers.
Do I have to follow state disclosure laws?
While selling your home as-is means you don’t have to make repairs, you still have to follow your state’s disclosure laws.
Most states have specific requirements for what sellers are legally obligated to disclose to buyers. These requirements typically include:
- The presence of lead paint
- Structural problems
- Defects with 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.
Can buyers request an inspection contingency?
When selling your home as-is, keep in mind that prospective buyers are still entitled to request an inspection contingency.
An inspection contingency allows a buyer to back out of a deal if an inspector finds an unexpected problem. As-is home sellers typically seek buyers who are willing to waive their right to these contingencies. Sellers don’t want to extend the sales process or waste time on buyers who’ll back out.
As the seller, you can decline a prospective buyer’s request for an inspection contingency — but doing so may drive away the buyer and limit the number of offers you receive.
Should I make repairs?
Making repairs before you list could increase your home’s sale price and attract more buyers. However, this outcome isn’t guaranteed, and some changes take a lot of time, money, and resources.
If you’re worrying about losing money selling your home as-is, then weigh carefully what home improvements might be worth making.
» MORE: How Much Do You Lose Selling a House As-Is?
Minor repairs
| ✅ Pros of making minor repairs | ❌ Cons of making minor repairs |
|---|---|
| Minor repairs are cheap — most projects cost around $500. | Minor repairs may not get 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 much time or money. These upgrades are typically cheap and easy to make, but there’s no guarantee these changes will attract more buyers.
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
Major repairs
| ✅ Pros of making major repairs | ❌ Cons of making major repairs |
|---|---|
| Major renovations could attract more buyers. | Major renovations can cost thousands of dollars. |
| Major repairs could increase your property’s overall value. | Major repairs can take months to complete. |
Major repairs are often costly and time consuming — meaning they can take weeks or even months to complete. However, these changes could get you more and higher offers on your home.
The most common types of major repairs include:
- Replacing the roof
- Installing a new HVAC
- Fixing electrical wiring
- Repairing plumbing lines
Conclusion: Explore your options to get a fair price
Even if your home is in poor condition, it’s worthwhile to explore your options and find the best buyer for your as-is sale.
Don’t feel pressure to take the first offer you receive, especially if the buyer is trying to lowball you. Consult a local real estate professional to better understand your real estate market, decide what base price you’re willing to take, and determine which option for selling as-is works best for you.
Frequently asked questions about selling a house as-is
How much money do you lose when you sell a house as-is?
How much money you lose selling a house as-is depends on who you sell to. If you sell to a cash buyer company, you could receive only 50%–70% of your home's after-repair value. This option could still be worth it if your top priority is to sell quickly. For more money from an as-is home sale, your best bet is to do a traditional sale. Even though you may lose money selling a house as-is compared to the home's after-repair value, you’ll likely have a much higher selling price through a traditional real estate transaction than you would with cash offer companies.
Can you sell a house as-is without inspection?
Yes, you can sell a home as-is without a home inspection. Selling as-is homes without inspections is becoming more common, especially in hot markets. Home buyers can submit an offer without getting an inspection, but they might choose to get one later. When selling a house as-is, sellers usually aren't required to make repairs even if the inspection report uncovers issues. However, some buyers may ask for an inspection contingency that would allow them to back out if the report unveils issues they don’t want to take on.
Related articles
7 Companies That Buy Houses for Cash: Cash buyers can help you in a pinch, especially when you need to sell your home fast or as-is. We cover seven cash buyers so you can decide which, if any, is right for you.
How Can I Sell My House Fast? Selling to a cash buyer company is one of the quickest ways to sell your house, but you won’t get as much money as you could on the open market. Learn more about cash buyers and other options for selling fast.
Top 10 Low Commission Real Estate Companies: While traditional realtors charge around 3% commission, several low commission real estate companies prenegotiate lower rates with agents, like 2% or even 1% commission. Check out our picks for the top 10 companies.
What Is an iBuyer? How iBuying Works + More! iBuyers use technology to make almost instant cash offers on homes. These companies offer a quick and easy sale, but they are in limited locations and only accept homes in good condition. Read more about iBuyers in our comprehensive guide.
Leave a Reply