How Much Do You Lose Selling a House As-Is

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|10 min read

When it comes time to sell your house, you have the option of listing it as-is. This means you are not interested in requests from buyers to modify or repair the home before selling it.

Selling a house as is allows homeowners to ensure a no-fuss sale because they won’t have to pay for a significant number of repairs or potentially delay the closing date. While opting for an as-is home sale is an easy option for homeowners, many people wonder if they are losing money by going this route.

How Much do You Lose Selling a House as is?

The first question to answer is whether or not you lose money when selling a house as-is. This is a difficult question because every house is unique and requires different repairs. It is also challenging to answer because it is hard to quantify how much those repairs will increase the home price. 

For example, replacing your old garage door will cost around $4,500. But, it has an estimated return on investment (ROI) of $8,700. By selling your house as is, and failing to replace your garage door before listing the home, you are leaving up to $4,200 on the table.

However, a bathroom remodel costs around $25,000 on average and has a resale value of $18,600. Deciding to update your bathroom before you list the home could cause you to lose money. It will also cost you time and energy. 

When you first meet with a real estate agent, they will perform a comparative market analysis (CMA). This estimates the value of your property against similar ones in the area. The CMA will tell you how much your home is worth based on its size, the neighborhood, the current market, and its condition. If your house needs significant repairs or upgrades, your CMA will be lower than similar properties that are in better condition. 

You don’t necessarily lose selling your home as is. You can potentially save money and time by listing your property in its current condition. Your agent may recommend certain repairs or upgrades that are worth the investment. However, it’s your decision whether or not you pursue them. If you currently live in a seller’s market and your home doesn’t need necessary repairs, an as-is sale could be a good option.

Should I Sell My House As Is?

Like any part of the real estate process, deciding to sell your house as-is will depend on your particular situation. An option that works for one home seller might not work for another. Here are a few instances when selling as-is can be a lifeline if you are eager to move. 

  • You cannot make repairs. Some people are not physically capable of making upgrades themselves and need to hire contractors to do the work for them. Elderly or disabled home sellers might opt for an as-is listing
  • You cannot afford the repairs. Home repairs can get expensive, especially if your property needs a lot of work. you might not have the funds to invest in renovations before listing your house. 
  • You have to move quickly. If you need to relocate for work or are going through a divorce, you might want to sell your house fast instead of spending several weeks making repairs or hiring contractors. 
  • Your house is in good condition. Some homes can be listed as-is because there isn’t much to repair. If you know your house is in good condition, consider this option. 

The extent of the repairs will also determine whether it as-is listing is right for you. If you simply have one major issue, like a broken HVAC system, you can decide whether you want to invest in that upgrade or let your future buyer deal with the problem.

Pros of Selling a House As Is

There are several benefits of opting for an as-is sale. This option is increasingly preferred by homeowners who are eager to move and don’t want to invest a lot of time and money in home repairs. here are a few benefits of selling a house in this manner. 

  • Speed: You don’t have to spend several weeks or months repairing your home and getting it in peak condition for the sale. You can list It today. 
  • Money: While many people think you lose selling a house as-is, there’s always a risk that you spend more money on repairs than you get back in the final sale price. 
  • Convenience: Home improvements don’t just cost money, they also take a lot of time. You will not have to give up your weekends working on repairs or spend several hours meeting with contractors and scheduling service calls. 
  • Faster selling process: Letting buyers know that you intend to sell the home as-is can prevent them from making offers with several repair contingencies. This allows for a sooner closing date.

This could be an ideal option if you need to move in a hurry, like relocating for a job offer. It is also a good way to sell your house quickly without any time-consuming upgrades or repair contingency closing delays.

Cons of Selling a House As Is

Despite the benefits of selling a house as-is, there are significant limitations to this option. Depending on the local housing market, your sale plan might not pan out as you expect. Here are the risks you take. 

  • Lower fair market value: You might not get the asking price you expect for your house because it needs repairs.
  • Limited pool of buyers: Many lenders won’t approve mortgages on homes that need significant repairs. You may need to work with cash buyers, limiting the number of people who will be interested in your property. 
  • Perceived issues: Even if your property is in good condition, an as-is home could be a red flag to buyers. It could take longer to sell your home than you expect because of this limited buyer pool. 

The market conditions in your area will determine what your home sells for and the demand for the property. In some regions, you can still get a higher price for a home that needs repairs because demand for houses is high. In other areas, listing a house as is could cause it to stay on the market longer than you want.

How to Sell a House As Is

Deciding to sell a house as-is is a big part of the real estate process. Once you start considering this route, you can take steps to increase your chances of a smooth home sale. Here are a few steps to follow as you evaluate your options and plan your moving timeline.

Get Advice From a Local Real Estate Agent

The first step in any home sale is to meet with potential real estate agents who could represent you. Ask at least three real estate to visit your home and perform a CMA on its value. They may adjust their estimated home sale price once they see the condition of your house. Each agent should review how they performed the CMA and how they reached their estimated listing price. 

During these meetings, ask your agent about as-is home sales. Learn if they are common in the region and if this option is a good fit for you. The agents should review how the fair market value of your home will change if you sell as-is, complete major upgrades, or simply invest in minor repairs. They might recommend a few key changes to focus on so you can attract potential buyers. 

If the agent you hire feels confident that you won’t lose selling a house as-is, you can move forward with listing it on the local housing market.

Disclose Defects

When your agent drafts your listing agreement, they will ask you to fill out a seller’s disclosure statement. This is where you will list every known defect in the house. It doesn’t matter whether you are selling a house as-is or are open to making major repairs, you are legally required to be transparent about your property’s known defects. 

You can also disclose any issues that you have already addressed with the property. For example, if the house is known to have termite damage but you have eradicated the infestation and addressed any foundational issues they caused, you can list those upgrades in the disclosure. 

A detailed disclosure will make potential buyers feel more comfortable about bidding on an as-is property. They won’t feel like there are any hidden issues that they need to look out for. 

Do a Home Inspection Before Listing

It is increasingly common for homeowners to schedule a home inspection before they list. This alerts them to any potential issues that home buyers might object to. Review the inspection with your real estate agent and go over any repair costs that could prevent your home from selling. During this time, you can decide whether you want to invest in these repairs or move forward with the as-is sale. 

Your Realtor may use your pre-home inspection as a selling point when buyers start touring your property. They can highlight how the home was already inspected and repairs were made while encouraging anyone who makes a bid to conduct an inspection themselves. Just because you conduct a home Inspection does not mean you should expect your buyer to waive theirs. 

This home inspection will prevent surprises in the home sale. Both you and your buyer won’t be shocked by a damaged roof or issues with the plumbing that could potentially cause your buyer to walk away from the deal.

Get Cost Estimates for Potential Repairs

When home buyers tour your property, they will mentally calculate the fair market value plus the repair costs. If an excessive amount of work needs to be done on your house, your buyers might walk away from the deal because the property is now out of their budget. 

If you want to be transparent about what the home needs, seek out estimates for repairs and upgrades before buyers visit your home. You can highlight how the final sale price plus the estimated repair costs reach the market value of the property. This will make your buyers think they are getting a deal rather than overpaying for a house that needs repairs.

Identify Repairs That Could be Required by Lenders

One of the challenges of selling your home as-is is that you may not receive offers from buyers securing FHA loans. The Federal Housing Authority (FHA) has strict guidelines for the condition of properties to approve mortgages for them. A buyer might walk away from the sale if you are not willing to make these repairs.

Look at the results from your home inspection and consider which repairs are essential for buyers and which ones are cosmetic or easy to overlook. For example, all broken doors and windows must be fixed to get an FHA loan, while appliances and the roof must have at least two years of viability remaining.

If you have a broken HVAC system or your roof needs to be replaced, lenders might not approve the mortgage on the home.

If you are adamant that you are not going to make any repairs on the property, your buyer pool might be limited to investors and people making cash offers. As a result, you might get lower offers than you want or the sale could take longer than you expect.

Set a Realistic Price

Once you understand the full scope of the necessary repairs and have estimates for what it will cost to complete them, you can work with your agent to set a competitive listing price. Your goal is to make money on the home sale while also finding home buyers quickly. You don’t want your house to stay on the market too long or people will lose interest in the property. 

Your agents can help you choose a fair market number for your initial listing price. Keep in mind that when buyers see an as-is sale, they might be more competitive with their offers and negotiations. You may receive offers that are lower than your listing price to account for the perceived repairs. Make sure you set a floor for the absolute minimum that you are willing to accept on an offer.

Alternatives to Selling a House As Is

If you are still worried that you will lose selling a house as-is, consider other options that could be more profitable. Here are a few ways to sell your property that are optimal for your finances and moving goals. 

  • Work with investors. You might be able to meet with cash buyers who promised to purchase your home as-is. Many investors will also allow you to choose your target closing date. You might get a lower sales price than you expect through this option. 
  • Take out a loan for repairs. If you don’t have the money for repairs at this time, consider taking out a loan or a home equity line of credit (HELOC). This will give you the funds you need to repair your property and make it desirable to buyers. 
  • List as For Sale By Owner (FSBO). Listing your home by yourself could help you save on Realtor commissions. Consider offering a lower asking price to appeal to cash buyers. Remember, with this option, you will have to take on all of the real estate paperwork and aspects of the transaction by yourself.
  • Wait for the market to change. Housing markets are unpredictable, but you could consider waiting for a seller’s market in your region. this might make your home more desirable without requiring you to make repairs. 

The viability of each of these options depends on how quickly you want to move, your ideal selling price, and how adamant you are against making repairs. Explore every channel before choosing the best one.

Check Your Market Value Before Listing an As-Is Home

The first step if you’re thinking about listing an as-is home is to contact a real estate agent. Your realtor can tell you if you’re currently in a seller’s market and provide a fair market value estimate for your property. 

They will advise whether it is better to make necessary repairs before listing or if they are confident that they can find cash buyers for your property. Your agent understands that you want to strike a balance between getting a higher sales price and moving quickly without putting a lot of work in. 

To find a trusted real estate agent who is experienced in as-is home sales, turn to FastExpert. You can review agent profiles to learn about their experience in your region and home sale specialties. You can also contact the top contenders and request interviews. Try FastExpert today and take the first steps to sell your home.

Amanda Dodge

Amanda Dodge is a real estate writer and expert. She has worked in the field for more than eight years. She spends her time writing and researching trends in real estate, finance, and business. She graduated with a bachelor's degree in Communications from Florida State University.

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