Selling A House As Is: How To Avoid Repairs And Sell Fast

If you have the right real estate market, selling your home can be extremely lucrative. But you might be shocked at just how expensive the process can be. Repairs you might end up doing before you list the home or even after could potentially add costs to the selling process.

You might be surprised to learn that making repairs isn’t entirely necessary before you sell a home. Instead, you can go the route of selling a house as is and skipping the repairs, but this still comes with its own pros and cons.

What Does It Mean To Sell A House As Is?

When you sell a house as is, you’re alerting potential home buyers that you won’t be making any major repairs to the property. If buyers decide to purchase a home as is, they can’t seek any compensation or help from the seller if they later discover any issues with the house.

A home being sold as is often means it has flaws of some sort or is outdated and in need of some work. In other words, these homes are often fixer-uppers and sold in their current condition.

When To Consider Selling A Home As Is

Homeowners might choose to sell their homes as is for many reasons. Most commonly, the sellers are in a tight financial situation and can’t afford to make expensive repairs before moving.

Here are a few other reasons someone might decide to sell their home as is:

• They’re on a tight schedule and don’t have time to remodel.
• They already have a buyer lined up who has agreed to buy the home as is.
• They’ve inherited the home and don’t want to deal with it.
• They want to get a cash offer on the home or sell it to an investor/flipper.

While these are the most likely reasons why someone would sell a home as is, there could also simply be homeowners who don’t want the burden of making repairs to their homes.

What Are The Pros And Cons Of Selling A House As Is?

There are some advantages to selling a house as is, but there are also some downsides that might dissuade you from doing it.

Pros 

• No repairs necessary: You can save time and money by not making repairs. When you advertise you’re selling as is, you can avoid certain requests during the negotiation process and may be able to get a no-contingency offer.
• Quicker sale: Selling as is could be a good choice if you need to sell your house fast or want to sell your house for cash. You’re often able to sell to an investor, which can speed up the process.
• Eliminate stress: Making repairs is one of many costs of selling a house. And unfortunately, you often don’t get that money back in the sale. Selling your house as is can take one of those burdens off your plate and help eliminate some stress.

Cons

• Fewer buyers: Many prospective buyers aren’t willing to buy a house as is. Instead, they want a move-in ready home for their family. While this doesn’t make your home impossible to sell, it will reduce your pool of potential buyers.
• Lowball offers: Don’t expect to get top dollar for a house you’re selling as is. Even if your home is just outdated or needs a few simple fixes, prospective home buyers may assume it has serious problems and give lowball offers.
• Lower listing price: When you list your home, your home value is usually based on comparable recent sales. Because your home will be missing any updates and repairs, your agent will probably recommend a low listing price.

How To Sell A House As Is

In some ways, the process of selling a house as is isn’t all that different from selling any other home. However, you should consider a few other details that could help you get more money from the sale of your house.

1. Talk To An Experienced Real Estate Agent

Before listing your home, as is or not, it’s a good idea to speak with an experienced real estate agent or REALTOR^®. Agents can give you valuable insight on the best way to sell your house and whether listing as is will be your best option, given your circumstances.

If your home is a good candidate to sell as is, an agent can help make sure your listing is as appealing as possible and market it on the multiple listing service (MLS). An agent with experience selling fixer-uppers can help you decide on an appropriate listing price and can also emphasize the good features of your home to attract buyers.

On the other hand, if your home is aesthetically displeasing but doesn’t have anything else fundamentally wrong with it, your agent may even be able to help you sell your house without the as is label. This may allow you to walk away with even more money than you would have otherwise.

2. Get A Home Inspection

Even if you’re planning to sell your home as is, you’ll still need a home inspection so you’re aware of any major or minor issues. You’re required to disclose all known problems with your home when selling as is, so an inspection may give buyers peace of mind that they know of all issues upfront.

While the home inspector may unearth problems in your home you weren’t aware of, it can be advantageous to share the inspection results with interested parties. It will not only dispel fears of hidden defects in the home but also give potential buyers an idea of how much they’ll have to spend on repairs.

3. Make Full And Accurate Disclosures

Remember, when selling as is, you must follow both federal and state disclosure laws and inform potential buyers in the purchase agreement of any flaws in your home that you’re aware of. By disclosing home inspection information, you can build trust with potential buyers and protect yourself from legal action at the same time.

If you’re working with a real estate agent, remember that agents have an ethical obligation to inform potential buyers of what they know about the property. Hiding information from buyers is never in your best interest – they’ll find out one way or another if there are major issues with the home.

Examples Of What You Must Disclose To Potential Buyers

The list of items sellers should disclose when selling a house includes any known issues, whether major or minor. Here are some examples:

• Evidence of a structural defect (like foundation issues)
• Major plumbing or electrical issues
• Past or present mold
• Water damage or leaks
• Lead paint
• Termite damage

4. Get Cost Estimates For Needed Repairs

Assuming your home needs updates or renovations, you should get cost estimates for the necessary repairs. It may turn out that repairs cost less than you thought or it may be more cost-effective to do renovations to sell your home for a higher price.

Even if you still won’t be doing repairs, having documentation can help support your asking price and attract buyers by taking the guesswork out of how much they’ll have to spend on repairs.

Home Improvements Worth Doing

While you may be hoping to sell your home as is, some repairs can help you get a much better return on investment (ROI). Consider completing these repairs and leaving the rest for the next owners:

• Replacing the roof: A roof is a major investment on a home. And while it may be expensive to replace it yourself before you sell the home, you may not find a buyer interested in buying a house – especially at your asking price – that will immediately need a new roof.
• Updating the electrical system: Your home’s electrical system has nothing to do with aesthetics – it’s what ensures your home is properly powered and safe. Buyers are likely to be hesitant to buy a home with old or faulty wiring, so consider updating the electrical system before you sell.
• Remediating termite, mold or water damage: Termite, mold or water damage are a few items that homeowners dread most in their homes. Sure, it may be just as easy for the next owner to fix as it is for you. But plenty of prospective buyers will pass on your home altogether if it includes any of these types of damage.

5. Declutter And Clean

The power of a thorough cleaning is not to be underestimated when selling your house. Decluttering as much as possible helps buyers see the potential of the space and visualize what they would do with each room. Clearing out personal items and tidying up makes your home look less lived-in and more enticing to someone else looking to use the space themselves.

Deep cleaning carpets, surfaces and bathrooms can make a huge difference to a buyer, especially if the home is a fixer-upper. You want to showcase your home’s best features when selling, which is difficult to do if the space is cluttered or dirty.

6. Consider Virtually Staging Your Home

Virtual staging can be a very helpful resource when selling a home as is, especially if the house looks outdated. This method of “staging” your home uses photo editing software to give your home’s rooms digital makeovers. Virtual staging can be used to add furniture, change wall colors and even renovate outdated spaces.

The price of virtual staging is usually around $75 – $100 per edited photo. While it’s an additional cost that you may not be interested in paying for, it can help potential buyers visualize themselves in your space and draw them to your home. It’s also a lot cheaper than traditional, in-person home staging, which can cost thousands of dollars.

7. Set A Realistic Price Without Selling Yourself Short

When selling your home without repairs, it’s important to work with a real estate agent to determine a realistic price for the property. Even if the space is in a state of disrepair, it’s likely not worthless. An experienced agent can help you come up with an accurate asking price.

Your real estate agent may also run a comparative market analysis (CMA) to find a price that’s fair. By looking at properties comparable to yours and their sale prices, your agent can help ensure you’re making as much money back as possible based on the state of your home.

8. Market The House Strategically

Selling a home is nearly as much about marketing as it is anything else. When you hire a real estate agent, they should offer this marketing as part of their services. Here are a few things to keep in mind when marketing your home to sell:

• Focus on the positives: Even if some things about your home need some work, some major selling points probably exist. Focus on those when writing the MLS listing and choosing photographs to include in the listing.
• Use eye-catching keywords: When writing your real estate listing, use creative and compelling adjectives that intrigue buyers. Meanwhile, steer clear of words that may scare them off.
• Target the right audience: If your home needs a ton of work, don’t market it to families who want move-in ready homes. Instead, consider marketing it to real estate investors and flippers who are specifically looking for a fixer-upper.

How Much Do You Lose Selling A House As is?

It’s impossible to say just how much money you’ll lose out on when selling your house as is. The answer will depend on many factors, including your local real estate market, the estimated cost of repairs and how updated your home is.

If your home is relatively updated and just needs a few minor repairs, you may not lose out on much of the value. Keep in mind, however, that prospective buyers don’t know the extent of the repairs needed, meaning you could end up losing more money than just the cost of the repairs.

You may lose out on less money if you live in an area with a seller's market. This is because buyers may be more desperate to find a home and more likely to pay a bit more for it.

FAQs: Selling A House As is

Selling a house as is can be a major decision. Here are the answers to a few other questions you might have before listing your house.

If I sell my house as is, am I free to disregard disclosure laws?

No, selling a house as is doesn’t free you from state and federal disclosure laws. You’ll still have to inform potential buyers of any issues you’re aware of. If you fail to do so, you could be sued for damages by the buyers.

What are common reasons to sell a house as is?

It’s often the case that someone sells a house as is because they can’t afford the cost of repairs. However, it could also be that they have a quick turnaround time or aren’t interested in the time and effort to fix up a home that’s likely to be flipped anyway.

Should I remodel or sell my house as is?

Only you can decide whether it’s worth listing a home for sale without making repairs. Keep in mind that fixing up your home versus selling it as is will attract two totally different types of buyers. Buyers looking for move-in ready homes won’t be interested in your as is home, but you may be able to sell it to investors, flippers or DIYers.

Who might buy a house as is?

Sometimes a house can be worth a lot more than its as is price, which attracts house flippers looking to turn profits. Home buyers on a tight budget and some investors willing to pay cash may also be drawn to a home sold as is if it shows potential and doesn’t seem to have any serious flaws.

Are there alternatives to selling a house as is?

For some home sellers, the right option may be selling a house as is. However, there are other options like iBuyer or working directly with a local real estate company that flips houses. iBuyer is a real estate tech company that will pay cash for houses. While these options might not get the highest home sale price, home sellers often get the quickest turnaround and cash in hand.

The Bottom Line

Selling a house as is can be a risky venture since many potential buyers assume homes with this label are deeply flawed in some way. By taking the right precautions and disclosing all issues with the property, you can still get a decent price for your home and take advantage of a faster, easier sale process.

If you’re ready to get the process started, talk to one of our Verified Partner Agents from Rocket Homes℠, as they can help make selling your home as is a bit less stressful.