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Can I sell as-is if I still owe a lot on my mortgage?
My house needs a new roof and some foundation work. I don't have the cash to fix it. Can I list it '"as-is" and just let the bank take their cut, or will a lender refuse to fund a buyer because of the condition?
Asked By Reagan M | Aurora, CO | 22 views | Selling | Updated 1 day ago
Answers (7)
Timothy Riordan
Keller Williams Realty WNY
You can absolutely list your home "as-is," but the condition of the roof and foundation will dictate who can buy it. Standard mortgages (FHA/VA) have minimum property standards. If the roof is leaking or the foundation is structurally unsound, a traditional bank likely won't lend on it. This shrinks your buyer pool significantly. Before you go the as-is route, ask your agent about "concierge" programs. Some brokers, usually large teams, will front the money for essential repairs (like a roof) and get paid back out of your proceeds at closing. This allows you to sell to a traditional buyer for a much higher price without spending a dime upfront.
- 39 minutes ago
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Katie K Portenga
Portenga Properties at Coldwell Banker Global Luxury
In Colorado, homes are technically sold “as is,” but that doesn’t mean buyers won’t ask for repairs. Most buyers will conduct an inspection, and if issues like a roof or other health and safety concerns come up, they will often request that those items be addressed.
Of course, you can decline to make repairs, but that may mean losing that buyer. In many cases, the same issues will come up again with the next buyer, so they often have to be addressed eventually.
Since it appears you’re in Colorado as well, I can share that in my experience buyers and their lenders typically want major items like a roof resolved. In some cases, homeowners are able to file a claim with their insurance company and have the roof replaced, with the deductible paid out of proceeds at closing.
Another option is to obtain several roofing quotes before listing the home. If the repair or replacement is manageable, taking care of it prior to listing can give you more control over the cost and allow you to market the property as having a new roof, which can be a strong selling point.
It’s also important to keep in mind that if a roof is in poor condition, a lender may not approve the loan, and buyers may have difficulty securing property insurance. If the buyer is obtaining financing, the lender will require that the home be insurable.
Regarding the foundation, I would recommend having a professional take a look before listing the home, even if it’s just a verbal assessment. Sometimes the issue may be minor and relatively inexpensive to address.
If the repairs end up being too significant or not feasible to complete before selling, another option is to market the home specifically to cash buyers and limit offers that require financing. However, it’s important to know that cash buyers typically expect a discount in exchange for taking on those repairs.
A local agent can help you evaluate the condition of the property, estimate how buyers will react to these issues, and determine the best strategy to maximize your net proceeds.
Of course, you can decline to make repairs, but that may mean losing that buyer. In many cases, the same issues will come up again with the next buyer, so they often have to be addressed eventually.
Since it appears you’re in Colorado as well, I can share that in my experience buyers and their lenders typically want major items like a roof resolved. In some cases, homeowners are able to file a claim with their insurance company and have the roof replaced, with the deductible paid out of proceeds at closing.
Another option is to obtain several roofing quotes before listing the home. If the repair or replacement is manageable, taking care of it prior to listing can give you more control over the cost and allow you to market the property as having a new roof, which can be a strong selling point.
It’s also important to keep in mind that if a roof is in poor condition, a lender may not approve the loan, and buyers may have difficulty securing property insurance. If the buyer is obtaining financing, the lender will require that the home be insurable.
Regarding the foundation, I would recommend having a professional take a look before listing the home, even if it’s just a verbal assessment. Sometimes the issue may be minor and relatively inexpensive to address.
If the repairs end up being too significant or not feasible to complete before selling, another option is to market the home specifically to cash buyers and limit offers that require financing. However, it’s important to know that cash buyers typically expect a discount in exchange for taking on those repairs.
A local agent can help you evaluate the condition of the property, estimate how buyers will react to these issues, and determine the best strategy to maximize your net proceeds.
- 6 hours ago
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- Unhelpful (0)
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Phong Tran
Real Broker
You can list “as-is,” but whether a buyer can get a loan depends on the type of financing. Conventional and FHA loans usually require the roof and foundation to meet minimum standards, so those buyers might struggle. Cash buyers or investors are usually fine with as-is properties. Listing as-is is fine, but be prepared that some buyers will be limited by lender requirements, and your agent can help set expectations and price it accordingly.
- 7 hours ago
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Alex Schafers
Schafers Real Estate Group / REMAX United Associates
Yes—you can sell your home “as-is,” but financing can be a hurdle. FHA, VA, and many conventional loans may require repairs if the roof or foundation has issues. That means some buyers won’t qualify. Your best options are cash buyers or those using rehab loans. Expect buyers to factor in risk and uncertainty, often discounting the price more than the actual repair costs. Pricing and positioning the home correctly is key to getting it sold.
One thing to consider is to find a contractor that will do the work upfront and get paid out of the settlement statement(proceeds). This would be my recommendation to optimize sales price.
Alex Schafers
One thing to consider is to find a contractor that will do the work upfront and get paid out of the settlement statement(proceeds). This would be my recommendation to optimize sales price.
Alex Schafers
- 12 hours ago
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Jim Swafford
Weichert Realtors The Space Place
Yes, actually it is your home and it is up to you how you would like to list it. HOWEVER, I do not advise my clients to use "as-is" because the legal definition for this is not the same as the real estate term. Instead I simply convey that to buyers agents or buyers. Put the information in a property condition disclosure and make sure that you are not trying to deceive. Also, think of this... do you really mean "as is" in real estate terms? What if - in some situations- the only thing needed is a pan under the hotwater heater or gutter extension? Make sure that your agent takes the time to explain these things to you and that they are educated themselves in what it best for you.
- 12 hours ago
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Nessa Goldman
BrokersGroup
The short answer is yes, you can absolutely list your home “as-is.” That simply means you’re not planning to make repairs before selling. However, the condition of the home does play a big role in who will be able to purchase it.
If there are significant issues like a roof nearing the end of its life or foundation concerns, some traditional financing options may be more challenging. Certain loan types have stricter property requirements, which can limit the pool of buyers. That said, there are still plenty of options—cash buyers, investors, or buyers using renovation loans are often a great fit for homes in need of work.
In these situations, pricing and positioning are especially important. The goal is to attract the right buyers from the start so you don’t end up in a contract that falls apart later due to financing or inspection issues.
If there are significant issues like a roof nearing the end of its life or foundation concerns, some traditional financing options may be more challenging. Certain loan types have stricter property requirements, which can limit the pool of buyers. That said, there are still plenty of options—cash buyers, investors, or buyers using renovation loans are often a great fit for homes in need of work.
In these situations, pricing and positioning are especially important. The goal is to attract the right buyers from the start so you don’t end up in a contract that falls apart later due to financing or inspection issues.
- 15 hours ago
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Joanne Jordan
Compass COLORADO LLC
Yes, you can absolutely list a home as-is even if it needs major work like a roof or foundation repair. Being “as-is” simply means you’re selling the property in its current condition and not planning to make repairs before closing. Buyers and investors purchase homes like that all the time.
-Where it can get tricky is the buyer’s financing. Many traditional lenders—especially FHA or VA—require a property to meet certain condition standards before they’ll approve the loan. Significant roof or structural issues can cause the appraisal to come back with required repairs, which may mean that particular loan won’t fund unless the issues are addressed.
-That said, there are still plenty of paths forward. Cash buyers, investors, or buyers using renovation loans are often comfortable purchasing homes that need work. The key is pricing and positioning the property correctly so the right buyers step in.
-If you’re carrying a high mortgage balance, the main question becomes whether the market value in its current condition will cover what you owe. A quick analysis can usually tell us that pretty fast. I’m always happy to take a look and walk through the options so you know exactly where you stand.
-I work with investors, and trust me, they are NOT looking to absorb the costs of deferred maintenance. I have seen often $100k-$200k less than what a seller wanted to get.
Truthfully, let's do a pre-sale inspection, we'll get estimates on the what would be major obstacles in the sale, and then we'll work together on a net sheet to see what you’d realistically walk away with, and whether selling as-is still makes sense financially.
-Where it can get tricky is the buyer’s financing. Many traditional lenders—especially FHA or VA—require a property to meet certain condition standards before they’ll approve the loan. Significant roof or structural issues can cause the appraisal to come back with required repairs, which may mean that particular loan won’t fund unless the issues are addressed.
-That said, there are still plenty of paths forward. Cash buyers, investors, or buyers using renovation loans are often comfortable purchasing homes that need work. The key is pricing and positioning the property correctly so the right buyers step in.
-If you’re carrying a high mortgage balance, the main question becomes whether the market value in its current condition will cover what you owe. A quick analysis can usually tell us that pretty fast. I’m always happy to take a look and walk through the options so you know exactly where you stand.
-I work with investors, and trust me, they are NOT looking to absorb the costs of deferred maintenance. I have seen often $100k-$200k less than what a seller wanted to get.
Truthfully, let's do a pre-sale inspection, we'll get estimates on the what would be major obstacles in the sale, and then we'll work together on a net sheet to see what you’d realistically walk away with, and whether selling as-is still makes sense financially.
- 6 hours ago
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