Thinking about selling your house as-is?
Listing your home in its current condition is tempting. After all, no repairs, no staging, no contractors to deal with. Simply list the home, find a buyer and move forward. And for many sellers…that’s exactly how it plays out.
But there’s a catch they don’t mention.
Properties sold as-is typically sell for less than they could if prepped for sale. How much less varies by property condition, market and buyer pool. So if you’re considering selling your home as-is, it’s important to know exactly what you’re getting into.
Let’s break it down…
Table of Contents
What’s Inside
- What “As-Is” Means (and What it Doesn’t)
- 3 Huge Pros to Selling As-Is
- Cons that Catch Sellers Off Guard
- Who As-Is Sales Work Best For
What “As-Is” Means (and What it Doesn’t)
As-is means the home will be sold in its current condition. No repairs, upgrades or concessions from the seller prior to closing. Any issues identified during the sale process remain unchanged unless the buyer and seller agree to something different.
However, “sold as-is” doesn’t mean “sold with no questions asked.”
Buyers are still allowed to inspect the property. If a buyer is concerned about certain issues, their inspector can come through and highlight them as negotiating points (which is more likely to happen during price negotiations). The caveat with an as-is sale is that the seller has disclosed from the start that no repairs will be made. The buyer simply needs to decide if the property is worth it at the listed price.
Homeowners looking to sell property in Fort Worth can get a fair offer and quick closing without the stress of putting a home on the market. Cash buyers know the area like the back of their hand, making sure sellers receive a fair price based on recent comparable sales. Properties can be purchased quickly with cash funding.
One important detail to note – sellers are typically still required to disclose known defects to buyers in most states. Many sellers mistakenly think an as-is sale lets them hide serious issues. Sellers are still legally required to share anything known to be wrong with the property. Hiding defects can come back to bite later.
3 Huge Pros to Selling As-Is
Selling your home as-is can have several huge advantages. If it applies to your situation, here are the reasons why it might be the right path:
Speed. Hands down the biggest benefit. There’s no need to deal with staging, repairs, or holding a real estate listing open for weeks. Some cash buyers are actively looking for as-is properties and can close in 7-14 days or less. For homeowners who need to sell their house fast for any reason, as-is can be a lifesaver.
No repairs needed. Money tends to add up quickly when renovating. Roof replacements can easily cost $10-15k. As-is homes sell for less, but they also don’t force the seller to spend their own money on repairs.
Less stress. Nobody likes dealing with contractors when selling a home. Scheduling them around showings, expediting work to hit deadlines, and paying up front just adds unnecessary stress. An as-is sale lets sellers cut that process out completely.
Certainty. Receiving a fair cash home offer from a buyer who purchases homes for cash means knowing exactly where things stand. No inspections, finding issues at the last minute and lowering the offer. Because the home’s condition was baked into the sale price from day one.
Cons that Catch Sellers Off Guard
Ready for the bad news?
Less money will likely come in when selling as-is. According to HomeLight, sellers can lose between 5%-30% of what they’d likely receive if the home was prepped for sale. Markets with new construction or high inventory saw as-is homes sell for up to 27% below median prices.
Ouch.
That’s never fun to hear, but as-is sellers need to plan for that lower price. Outside of the cost, keep these drawbacks in mind:
- Fewer buyers. Unless a buyer is a flipper or has cash to purchase a property outright, most want a move-in ready home. As-is sales generally only appeal to investors.
- Buyer skepticism. Novice buyers run from properties listed as-is. It can create unnecessary fear that something major is wrong with the property.
- Repair negotiations can still happen. Some buyers will still ask for repairs to be made, even when the seller has made it clear the home will be sold as-is. (Having a solid contract can help avoid this.)
Who As-Is Sales Work Best For
As you can see, selling as-is isn’t ideal for every homeowner. Depending on the situation, it could be the perfect option:
Sellers who need a quick close. Whether it’s a job transfer, divorce, foreclosure or family emergency – some homeowners need to move fast. If you’re in this type of situation, getting a house sold as-is makes a lot of sense.
Can’t make requested repairs. Submit an offer containing repair requests and you can bet the seller will counter by asking for more money to complete those repairs. If affording the repairs before selling isn’t possible, they may not be affordable after closing either.
Inherited homes. Not everyone planning to sell their house wants to or has time to remodel it. Inheriting a property that will never be lived in makes an as-is sale even easier.
Problem rentals. Owning a rental that didn’t age well or was mistreated by tenants is pretty common. If a problem rental has become a burden, selling as-is is a great solution. Investors are used to this and typically ready to buy fast.
Homeowners with equity to spare. If a lot of equity has been built up, the lower as-is price may still leave plenty on the table. Going in with eyes open will prevent any nasty surprises.
Bottom Line: Selling As-Is
Selling a home as-is gets the seller out the door faster than traditional methods. But it won’t be free.
As-is properties typically sell for thousands less than similar homes on the market. Just how much less is specific to each home’s condition and the local real estate market.
Every seller who successfully sells as-is understands this going into the sale. Know what the home will likely sell for. Have any inspection reports or information about the property’s condition on-hand. If someone makes an offer to buy the house as-is, make sure it aligns with recent, comparable home sales in the neighborhood. If it’s too low, negotiate harder.
When the homework is done first, selling a home as-is can be everything it claims to be: fast and hassle-free.
