Is selling my house as-is a good choice?
As with any decision, there are pros and cons of choosing to sell your home as-is. Let’s take a look at a few.
Pros of selling a house as-is
A faster track to closing
Getting ready for a traditional home sale can take as little as six weeks, but often the preparation process takes much longer. Selling as-is can allow you to get your home listed on the market faster.
As of March 2024, listed properties were on the market for 33 days, according to recent data from the National Association of Realtors. Depending on the market and the condition of your home, full home preparations could take longer than finding a buyer. If selling fast is the goal, selling as-is may be one way to achieve it.
Attract a cash buyer
Often, cash buyers are attracted to as-is homes and the prospect of getting a deal. Another way to sell an as-is property is with HomeLight’s Simple Sale platform which provides you with an all cash offer for your home, allowing you to skip the repairs, prep work, and open houses. After answering a few simple questions, you can get an all-cash offer within a week. And you can close your home sale in as few as 10 days.
Less costs to the seller
If the budget is tight, selling as-is can help you avoid the upfront costs that can come with selling a home. Even if you’re selling as-is, you can still take some time to address smaller, inexpensive issues — a leaky faucet, a broken hinge, clutter, etc. — that might further deter buyers.
Reduces back-and-forth negotiations
While you may not be able to invest much in the property, it’s advisable to keep the lines of communication open. Will Gaskins, who sells properties 67% faster than average Washington DC and Northern Virginia agents, tells his clients to engage in the home inspection process and consider buyer requests.
He reminds them that they still have the right to say no, but at least they’ll get to have a conversation about things. “We want a win/win,” Gaskins says. “We want the buyers to feel good about the transaction, and we want the sellers to feel good.”
But you still have the option to negotiate concessions like closing cost assistance based on work that is needed. For instance, Lurie says that in some cases, it’s possible to “work it out with concessions versus making them do repairs before closing. Sellers are more apt to give concessions than to do the actual work.”
Cons of selling a house as-is
Smaller buyer pool
When potential buyers see those two little words in listings, it usually denotes that there is something wrong with the property and can deter some buyers who don’t want to make repairs. “When I see the words ‘as-is,’ I tell the buyers don’t even bother with it,” says Debra Blanchet, a Providence County, Rhode Island agent with 35 years of experience.
Listing your home as-is”can decrease the number of buyers who will come look at the property. Gaskins believes it sends a bad message. “It tells people this is a disaster.” If your goal is to sell your home quickly, he recommends you attract buyers with your openness to negotiating instead of using the as-is tag. You can still say no to their requests (which may lead to a decrease in what they’ll pay), but at least you’ll have people willing to look at the home and make an offer.
The buyer might back out
The potential buyer still has the right to ask for a home inspection even if you state you’d like to sell as-is. They also have the right to ask you to fix problems that the inspection turns up. If you refuse to engage in a little give and take with the buyer, it could lead to you having to sell the property way below what it’s worth, or the buyer will simply walk away and you’ll have to go through the process all over again.
Even if a buyer is willing to buy a house as-is, they can still have an inspection and decide not to buy the property if issues arise that weren’t listed on the seller’s disclosure. A way to be prepared for this is to have your own inspection done before you list the property, so you are aware of any and all of the issues.
How much do I lose selling a house as-is?
There are many factors that impact the home’s final sale price and how much you could lose selling as-is rather than making repairs and selling a turnkey property. It really depends on the current state of the overall market, your local market, and the state of the property.
A property selling as-is with no major structural issues will be in a different situation than a property selling as-is with a crumbling foundation. Your agent will have a good idea of the local market and be able to advise you on how much you could lose selling as-is.
One option some sellers choose is to sell their home as-is to an investor or iBuyer company (instant buyer) for an all-cash offer. This allows the seller to skip the repairs and showings and get a fast closing. But the convenience comes at a cost. Investors who fix and flip houses pay significantly under a home’s value compared to what the owner might get selling as-is on the open market with an experienced agent.
iBuyers typically pay more than flippers, up to 85% or higher of a home’s value. With investors or iBuyers you might lose tens of thousands of dollars. However, depending on the as-is condition of your home, an all-cash offer from a house-buying company might be the solution you need.
HomeLight’s Simple Sale platform could be another option for you. Simple Sale connects you with the largest network of cash buyers in the U.S.
