Sharad Mehta • July 27, 2024

How To Sell a House As Is

Not every home seller wants to renovate their home, or even touch up the painting and landscaping. Some sellers just want to sell their house exactly as it is, and move on to the next chapter of their lives. 

Will you get top dollar when you sell your house as-is, with no sprucing up? Of course not. But top dollar isn’t necessarily every seller’s top priority. 

If you’d rather not hassle with any repairs, renovations, or upgrades, follow these rules of thumb for how to sell a house as-is. 

What Does It Mean to Sell a House As-Is?

From a legal standpoint, as-is means that the seller offers the property for sale in its current condition. They make no warranties about the condition of the property.

What the buyer sees is what the buyer gets — end of story. 

That starts with the property listing on the multiple listing service (MLS), stating that the property is listed in as-is condition.  Sellers also typically sign a disclaimer in the contract of sale, affirming that the property is sold as-is and that the buyer must conduct their own due diligence about the property’s condition. That differs from the lengthy disclosure document that sellers otherwise fill out as part of the sales contract. 

That said, sellers should disclose all “material facts” about the property’s condition. If it has a leaking roof or a cracked foundation, you must still disclose these known facts to buyers rather than covering them up and hoping the buyer just doesn’t notice. 

As-Is Property Condition

Legal implications aside, “as-is” condition can mean different things to different sellers — and to different buyers, for that matter.

You could sell the property exactly as it stands, perhaps even with abandoned belongings still inside it. As an investor, I’ve bought hoarder homes as-is, often from heirs who inherited them and didn’t want to even go inside. I’ve also bought as-is properties from “tired landlords” who got sick of the headaches of non-paying tenants, eviction filings, and cleaning out abandoned junk. 

As-is properties could range from condemned houses that need a full gut renovation up to simply outdated homes. Perhaps the as-is home has major structural flaws or broken mechanical systems, or perhaps it simply needs a fresh coat of paint. 

In fact, some sellers might make minor cosmetic improvements such as repainting the property, then still list the home as-is. The home may look slightly outdated, but it can still show better with fresh paint and landscaping. That can help it sell faster, and for a higher purchase price. 

Common Reasons to Sell a House As-Is

Selling a house is stressful enough without adding the cost and headaches of major repairs or property upgrades. 

It also rubs many sellers the wrong way to upgrade the house into their dream home — just in time to part ways with it forever. It makes them wonder why they didn’t remodel years ago, and whether they should sell at all.

Then there’s the math, which isn’t pretty. A study of over 70,000 homes by Today’s Homeowner found that not a single common home improvement had a positive return on investment. Most home renovations cost more than the value they add to a home, some dramatically so. The math changes if you do the work yourself, but you pay with your time and labor rather than your pocketbook. And let’s face it, you may not deliver the same quality work as a professional contractor. 

Many sellers don’t have the time, the money, or both to renovate their home before selling. Others simply don’t have the interest, including many owners who inherit a home that they don’t want. 

So, they decide to sell the property as-is, without making any significant improvements to it. 

Even so, speak with a real estate agent who specializes in your local submarket. They may point out easy wins, such as touching up peeling exterior paint, that you can do yourself within a Saturday morning and which can bump up the curb appeal and sales price. Local market conditions matter, so don’t write off the possibility of making a few modest improvements even if you plan to sell the house as-is. 

Pros & Cons of Selling a House As-Is

As you consider whether to sell your home as-is, keep the following advantages and disadvantages in mind. 

Pros: Benefits of Selling a Home As-Is

In addition to the reasons outlined above, many property owners sell as-is for the following upsides:

  • No Up-Front Costs: Renovating or repairing properties costs money. You cough up money for materials no matter what, and labor costs if you hire the work out to a contractor. And there’s no guarantee that you’ll earn back those costs in the form of a higher purchase price.
  • List the Property Today: When you sell as-is, you don’t have to mess around with hiring and negotiating with contractors, waiting for work to be completed, or any other delays. You can list the property right this moment if you so choose. 
  • Convenience: If you’ve ever done any significant home improvements, you know they always cost more money and time than you think they will. They’re a pain in the neck, often literally if you spend too long craning your neck to paint the ceiling. Many sellers don’t have the patience or interest to be bothered. 
  • Simpler Negotiations: When you sign the contract of sale to sell a house as-is, buyers could still come back after the home inspection and make demands. But it just doesn’t happen as often. Buyers typically go into the contract knowing that what they see is what they get, and there tends to be less back-and-forth quibbling about repairs once the ink is on the purchase contract. You have a better chance of closing for the contracted price, rather than the average $14,000 in negotiated buyer savings after the home inspection.

Cons: Downsides to Selling a Home As-Is

Like every other major real estate decision, selling as-is comes with cons in addition to the pros:

  • Lower Purchase Price: At the risk of stating the obvious, you can’t expect to sell for top dollar when you sell your home as-is. Often the home listing attracts more investors than homebuyers, and investors expect to buy for bargain pricing. 
  • Smaller Pool of Buyers: Many buyers refuse to consider homes sold as-is. Some assume the property must have major structural defects or mechanical problems. Others want a move-in ready home in good condition, and don’t want to have to hassle with repairs before settling in. 
  • Buyer Financing Challenges: Most conventional loan programs require that the house is habitable. If the property does have structural or mechanical system problems that an appraiser or home inspector would classify as leaving it uninhabitable, your buyer would need a specialty mortgage program such FHA’s 203k loan program. 

How Do You Sell a House As-Is?

Follow these steps to sell a home in as-is condition.

1. Decide on a Sales Strategy

First and foremost, decide if you want to sell to homebuyers or to an investor paying cash. 

Cash buyers such as Max Properties can close quickly, often within a couple weeks. They ask fewer questions and are less likely to come back with fresh concession demands after the home inspection. 

You can find cash buyers with a simple Google search for “cash home buyers” in your local market. Just go into the transaction knowing that investors expect a low enough price to leave a profit margin available after they renovate the home. 

If you want to sell to a homebuyer, expect a longer and more complicated sales process — but a higher sales price for your trouble.

2. Hire a Top Real Estate Agent

Start by speaking with the top three local Realtors in your neighborhood and submarket. You can ask around friends and family for referrals of course, and ask on local real estate forums and social media groups. 

Too many real estate agents are inexperienced or distracted part-timers. You want to work with a true professional who knows your local submarket inside and out.

Talk through your priorities and the reasons you’re considering an as-is home sale. These local housing market experts can advise you on your likely sales price if you sell as-is, versus the price you can expect if you make varying degrees of upgrades.

3. Disclose Home Defects, Consider a Pre-Listing Inspection

Disclose all known property problems to your listing agent. They will include all material defects in the listing, to avoid buyers pulling out of the contract later when they discover them in the home inspection. 

Walk through your home with any prospective real estate agents you’re considering. They may or may not advise you to conduct a pre-listing inspection to discover the exact condition of the property.

4. Reconsider Repairs

Now that you’ve had a chance to discuss the property condition and local housing market with a real estate agent, give a second thought to improvements. 

It comes down to a judgment call about whether it’s worth your effort to repaint, replace the carpet, or other minor upgrades. A few cans of paint and a Saturday spent repainting the exterior trim and a few interior rooms could add thousands of dollars to the sales price — or not.

5. Discuss Listing Language & Photos with Your Realtor

Once you’ve hired a listing agent and completed any final upgrades, get strategic about marketing.

Talk through the description language in the sales listing on the MLS. You want to strike the right balance between transparency and presenting the property in its best light. A top local real estate professional can help you walk that fine line. 

Likewise, make sure the photos strike the same balance. Talk to your Realtor about whether they should shoot the photos or whether you should hire a professional real estate photographer, do virtual staging, video tours, or use any other visual marketing tactics. 

6. Double Check Contract Offers

Finally, make sure your listing agent only brings you purchase contracts that mark the sale as being sold as-is. 

A seemingly minor oversight could cost you later, when the buyer comes back demanding repairs or concessions, or exercising a contingency. 

Tips for Selling a House As-Is

How can you sell your house as-is quickly and for the best price?

1. Keep It Clean

Despite selling the property as-is, you should still keep it as neat and tidy as possible. 

Keep the kitchens and bathrooms sparkling clean. Vacuum carpets regularly, mop hardwood floors, dust horizontal surfaces. 

2. Remove Some Personal Belongings

You could stage the property of course, although first consider simply removing half of the furniture and personal effects from every room to create the appearance of more space. Don’t allow any clutter to accumulate in any room.

3. Boost Curb Appeal 

Maintain the lawn and curb appeal on the outside as well. Mow the lawn in the summer, rake the leaves in the fall, keep snow and ice off the driveway and sidewalks in the winter, mulch the landscaping in the spring. 

4. Execute on Cosmetic Improvements

As outlined above, consider minor cosmetic improvements like painting the interior or exterior. When in doubt, ask your Realtor for advice. 

The better the property shows, the better the offers you can expect from prospective buyers.

Final Thoughts

Selling your house can be as quick and simple or as complicated as you want it to be. The tradeoff is that the faster and simpler the sale — such as selling your house as-is — the less you’re likely to walk away with at the closing table. 

Only you know your urgency in selling, and your willingness to take on headaches and delays to attract higher offers. Talk through your priorities with a real estate agent if you sit on the fence. 

If you know you want a quick sale as-is, consider selling to an investor such as Max Properties for a cash purchase. 

Learning how to sell a house as-is doesn’t take you more than a few minutes to grasp the fundamentals. In many ways, it’s easier than trying to sell for full market value. You simply have to decide whether you prioritize convenience and speed over a higher sales price.

Get Fair Cash Deal

Just fill out the form below to get started on your FREE, no-obligation cash offer today.

"*" indicates required fields

Property Address*
Privacy Policy
location

Visit Us

8410 Kennedy Avenue, Highland, IN, 46322

Talk to us

Talk to us

(219) 255-3120

© Copyright 2024Powered by REsimpli.