Your home’s condition has a huge impact on the buyers it'll attract and the amount they'll be willing to pay. However, selling a home that needs repairs doesn't automatically mean accepting a lowball offer or sinking money you don't have into home improvements.
The price you get for your house — and the amount of work required to sell it — often depends on your market.
Here's how to get the most out of selling a house that needs repairs.
At a glance: Top options for selling a house that needs repairs
How to sell a house that needs repairs
When selling a house that needs repairs, you have a couple of options: Sell as-is to a cash buyer or put your house on the market.
Offloading a property to an investor means you won’t have to put hundreds or thousands of dollars into repairs or figure out how to market a house that needs updating. But it may not earn you the highest profit, since investors typically pay less than market value for homes.
Putting your home on the market could get you a higher sale price as a result of broader exposure, but you'll be on the hook for realtor fees and will need to decide how much money (if any) to invest in readying your home for listing.
Option 1: Sell as is to a cash buyer
🔎 Key takeaways:
- 💵 Typical offer price from a cash investor: ~70% ARV
- ⏰ Average time to sell with cash buyer: 7-21 days
- 📈 Additional costs: Typically none
Cash buyers include private investors and larger companies that buy houses for cash. They're known for purchasing homes in just about any condition and can typically make an offer within 24–48 hours of connecting with you. Most require no home inspections or appraisals, and can usually close in a couple of weeks.
Brett Johnson, owner of Cash For House Pro, adds that cash buyers "don't demand any repair work. Moreover, many reputable cash buyers refrain from charging fees or commissions and cover all closing costs, rendering the transaction remarkably smooth and cost-free for the seller."
Just keep in mind that investors typically pay well below market value. This is because investors need to get a deal on the initial purchase price in order to make a profit when they resell a home at market value. Offers will factor in their expenses and desired profit margin.
👉 Tip: Get multiple offers before selling for cash
Many investors will start their offer at about 70% of the estimated resale value after repairs, and adjust up or down based on your home's condition, location, and the health of the local market.
Given the variability in how different investors formulate their offers, it's best to get multiple offers before deciding. You can do this on your own, with the help of a realtor, or through a free service like Clever Offers.
📍 Find the best cash home buyers near you
Our editorial team has researched thousands of companies to find best cash home buyers for all 50 states and Washington, DC.
Option 2: Put your house on the market
🔎 Key takeaways:
- 💵 Typical sale price compared to listing price: 99.5%
- ⏰ Average days on market: 52 days
- 📈 Additional costs: Realtor fees, closing costs, and home prep
"Selling your home through a realtor will get you the most money in almost every situation," says real estate investor Donald Olhausen Jr. of WeBuyHousesInSanDiego.com.
By way of example, Olhausen recalls a seller who recently contacted him about purchasing her house for cash. "The house was in horrible condition and needed at least $70,000–100,000 in renovations to become fully livable," recalls Olhausen. However, the home was in a desirable area, so he suggested listing the property instead of selling it to him outright.
"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. "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."
When listing a house that needs repairs, look for an agent with ample experience selling homes as is. While an inexperienced agent might default to listing the house for 10–20% below market value, an experienced agent will know how to prep and market the home in order to maximize your profit.
👉 Remember: Realtor commissions are negotiable
One way to maximize your proceeds when selling a house that needs repairs is to work with an agent willing to negotiate their commission. Working with a listing agent that charges 1.5% vs. the typical 3% can save you thousands on your home sale.
But picking a low quality agent could mean selling for way less than you'd save in realtor fees — so if you opt for commission savings, choosing a reputable agent is a must.
Explore both options to get the best price
"Selling as is to a reputable cash buyer can be a good fit if you need to sell immediately — as in the next few days — your home is in bad shape, and you need someone with a truly proven track record they can close," says Ben Mizes, real estate investor and President of Clever Real Estate.
However, Mizes cautions that you need to vet investors carefully, since there are plenty of frauds in the space. Even then, he says, you can usually get more by listing your house as is on the open market with an agent.
"If you need to sell fast, you can list your home slightly or even significantly below market value, and require all offers to come in within a week — with no financing or inspection contingencies, a high earnest money deposit, and proof of funds," suggests Mizes. "Doing this almost guarantees the offers you receive will be strong, proven cash offers."
In the meantime, you can request cash offers from a few different investors to use as a backup. Requesting offers is free, and you're under no legal obligation to accept one.
💡 If you're on the fence about selling as is, we recommend starting with a marketplace like Clever Offers, which lets you compare fair cash offers to the sale price you'd get with an agent — with no added fees or commitment.
Should you make any repairs before selling?
One of the biggest decisions when selling a house that needs work is whether to sell it as is or fix it up before listing. That will depend on several factors, such as:
- The costs vs. return on the repairs needed: Most repairs don't offer an equal return on the investment. If the required work won't result in a commensurate boost in home value, it's probably not worth doing.
- Your selling timeline: If you need to move in 60 days or less, sinking time into repairs may not be an option
- The types of repairs needed: If the work needed affects the safety or livability of your home, your buyer pool may be limited to investors and developers offering far less than traditional buyers.
- Your willingness to manage the work: If you're selling from out of state or handling the sale of an inherited home, you may not want the trouble of managing repairs.
To determine the best selling strategy for you, it can help to consult with an experienced listing agent and ask the following questions.
1. How much will repairs cost?
Before undergoing repairs, get quotes from contractors to decide whether the time and money is worth the investment. Knowing the cost of specific projects will help you budget and decide which repairs are worth completing.
Repair estimates can also help you determine how much you’d need to sell for to make those repairs worthwhile. If the costs outweigh the potential return, you might want to skip the repairs and sell as-is.
Even if you choose not to complete the repairs, the estimates can help you determine a realistic sale price accounting for any credits you might want to offer buyers in exchange for taking on the repairs themselves.
2. Will repairs boost my home's market value?
Knowing your home’s potential market value — both before and after any updates — can save you from investing in potentially costly and unnecessary repairs later on.
"The key is to understand what home upgrades buyers are willing to pay more for," says Lee Harbaugh, a realtor based in Dallas–Fort Worth.
"Often, 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 Harbaugh. "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."
A real estate agent will be your best resource for learning what buyers are looking for in your market — including what repairs will have the most impact and which are unlikely to drive up your resale value.
When you consult with a realtor, they'll typically run a comparative market analysis — examining your home and pulling data on the surrounding real estate market to establish a reasonable list price based on similar homes that have sold nearby.
3. Could the issues prevent buyers from getting financing?
Roughly 80% of buyers use a mortgage to finance their home purchase, according to data from the National Association of Realtors. Unfortunately, "some home repairs that go unfixed can disqualify buyers from purchasing a home because the loan is not insurable under certain conditions," warns Florida-based realtor Elisha Lopez. This is especially true of government-backed loans, such as VA and FHA loans.
Issues that could prevent buyers from getting financing include:
- Extensive roof damage
- Major structural or foundation issues
- Broken electrical system
- Nonfunctioning HVAC system
- Broken plumbing
- Severe mold or grime in bathrooms, basement, or attic
- Termite damage
If the amount of work needed means that most buyers won't be able to qualify for a loan, you may be looking at selling to an investor — in which case you should expect to receive less than an owner-occupier would pay.
But if you're in a neighborhood where home prices are appreciating — and you're willing to get the house into decent enough shape that it will qualify for conventional financing — you may have a chance of selling to a traditional buyer willing to take on a renovation to get into their desired neighborhood.
🛠 Real-life example 1: Making minimal repairs before listing
Realtor Josiah Carter offers a recent example of a seller who opted to make repairs:
"A home went live yesterday with an initial offer before going on market of $220,000 from an interested buyer. However, the seller chose to invest $12,000 in repairs, including new carpet, cabinets, and a fresh coat of paint. After these improvements, the property was listed for $275,000, in line with comparable sales in the area."
"By choosing to make the repairs," says Carter, "the seller stands to net an additional $43,000—a substantial increase in profit.
🏚 Real-life example 2: Selling as is to a cash investor
"I literally just closed a deal last week in which I represented a seller that chose to sell a house in need of repairs as is," realtor Lee Harbaugh told us via email.
"The house needed lots of work — new floors, new kitchen counters and appliances, paint inside and out, new A/C, new water heater, many other things as well. The seller was out of state and felt that trying to manage repairs remotely would be too difficult."
"I basically took what I thought the value of the property would be if it was in great shape and deducted what I estimated the cost of repairing the property to be, and that became our list price. We ended up selling the property to an investment company for about $10,000 under our list price. All in all, we felt good about the deal in the end."
How much do you lose selling a house that needs repairs?
Home sale data shows that sellers should expect to leave at least some money on the table when selling a property that needs work, but location plays a big part in how much.
For example, research conducted by Porch found that the difference in sale price for homes designated 'fixer uppers' ranged from as little as 1% less to as much as 67% less than area averages, depending on the city.
Similarly, the research team at Maker Real Estate analyzed thousands of 'as is' property sales in Ramsey County, Minnesota. County-wide, the median sale price for homes sold as is was $265,000, compared to $315,000 for all homes. However, the loss varied greatly by neighborhood and city.
- In areas with newer construction and plenty of homes available, properties sold 'as is' went for as much as 27% less than the area average.
- In more desirable neighborhoods, where homes tend to be older and there are fewer of them for sale, as-is properties earned an average of 21% more than the median home sale price for the area.
"Hotter markets allow for higher ARV percentages, while declining or slower markets require more caution," says real estate investor Efrain Lopez of House Love Treatment Buyers LLC. "Desirable neighborhoods or growth areas may justify paying closer to the higher end of the offer range."
Tips to sell a house that needs repairs
🧹 Help buyers see the potential
Even if you’re selling a house in poor condition, putting a little effort towards presentation can help potential buyers see the property’s potential upsides.
"We recently helped a seller who had been on the market for two months with no offers," recalls realtor Suzanne Seini of Innovate Realty. "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.
Zillow found that 72% of recent home sellers made at least one home improvement before selling, with the most popular improvements being:[1]
- 🖌 Interior painting
- 🛁 Bathroom improvement
- 🧑🍳 Kitchen improvement
- 🌼 Landscaping
- 🪚 Flooring repair/replacement
- 🏠 Exterior painting
"Sometimes all it takes is some new paint and a deep clean," adds Seini.
📝 Get repair quotes to support your asking price
Whether you sell as-is or after you’ve renovated, you should get multiple repair estimates and keep them on hand when you list. These repair estimates can be useful during negotiations with buyers.
"Get quotes from multiple contractors for the repairs needed," says Sharlys Leszczuk, a real estate broker with Windermere West LLC. "This will give you a great negotiation tool to counter an offer that comes in below your list price."
📝 Document any known issues
Even if you’re selling as is, you’re still required to disclose any known defects. Dan Belcher, CEO of Short Sale RE, really emphasizes this point with clients: "Disclose, disclose, disclose so buyers aren't surprised. Good communication and reasonable expectations are essential whether you sell as-is or renovated."
Disclosing defects is not only the law in most states, but it can help prevent deals from falling through. For example, many buyers will insist on an inspection contingency. If that inspection uncovers a significant problem, then the deal is at risk of failing or you may have to settle for a lower price. By disclosing defects and providing inspection reports, you increase the chances of a successful sale.
🥕 Use incentives to attract buyers
Offering closing credits or concessions can be a great way to reduce some of the anxieties buyers have about major repairs. For example, by mentioning in your listing that you’re including a closing credit for a new furnace, you’ll likely attract more buyers who would otherwise be hesitant about buying a home in need of such a significant investment.
"A credit can be beneficial for a buyer because they can then go hire the vendor of their choice to complete the work," says realtor Tamar Asken of Parasol Realty. Giving buyers this extra bit of control over repairs instead of doing them yourself can make your property even more enticing.
Bottom line: You can sell your house even if it needs repairs
Just about any house, including one in need of repairs, can find a buyer so long as the price is right. Whether you choose to sell to a cash buyer or list on the open market will depend on how fast you want to sell and for how much.
To decide which option is best for you, remember to ask yourself how much your home is worth, how much it would cost to repair, and what kind of buyers you’re trying to target. The answers to these questions will determine whether you should invest in repairs or try to sell as-is.
Whichever path you choose, you’ll want to compare all your options. Talk to an agent to find out what your home could sell for on the open market. And if you’re considering selling to a cash buyer, get multiple offers and compare them to your home’s market value to ensure you’re getting a fair deal.
⚡ Compare fair cash offers to the sale price you'd get with an agent — no hassles, fees, or commitment
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FAQs
Is it hard to sell a house that needs serious repairs?
Sometimes. If your home needs serious repairs, you have a few options on how to sell. If you want to sell quickly and without repairs, cash buyers will make offers and let you close within weeks. Selling your home as-is on the open market also helps you avoid making repairs, but it can be hard to find suitable buyers.
Should I fix up my house or sell it as is?
It depends on the home and your needs. If you need to sell quickly and aren't worried about maximizing your homes sale price, you can sell it as-is at a discounted price. You can also make the necessary repairs before selling on the open market, but you should determine your homes value and the cost of those repairs firsthand.
How do you list an old house that needs work?
There are three ways to sell a home that needs repairs: You can sell as-is to a cash buyer, usually for a low price. You can sell as-is on the open market, which may take time and produce low offers. Or you can repair and update the home before listing it on the open market. Learn more about your selling options.
How can I determine my home's as-is value?
Consult a real estate agent, who can provide you with a comparative market analysis (CMA) to help determine your homes as-is value on the open market. A realtor can also tell you how much your home may be worth both with and without repairs. Alternatively, you can seek cash offers from investors, although these may be less than market value.