How Much Do You Lose Selling a House As Is? | Pros and Cons of Selling a House As Is | What Does It Mean to Sell Your House As Is? | Which Factors Affect How Much You Lose Selling As Is? | How to Sell a House As Is | Alternatives
|🤔 How much do you lose selling a house as is?
Selling a home as is may be necessary under some circumstances, but it can result in losing out on around 20%of your home’s fair market value, compared to what you could earn by listing on the open market.
If you decide to sell a house “as is,” you may have to accept a lower price.
While the exact amount varies, U.S. News and World Report estimates that you could lose out on around 20% of your home’s value. That’s because buyers who purchase a home as is are waiving the opportunity to request repairs — instead, they’ll assume the full cost of renovations once they own the home.
However, price isn’t every seller’s top priority. Not every home seller has the time, energy, or cash to fix up their home. Homes that are sold as is can attract the attention of DIYers and flippers who are unafraid of elbow grease and eager to find a good deal.
If you need to sell fast for a fair price, our friends at Clever Real Estate can help. Clever offers a free service that matches home sellers with the best real estate agents near you. Clever’s partner agents come from top-rated brokers such as Keller Williams and RE/MAX.
Home sellers who find an agent with Clever sell 16% faster on average AND pay just 1.5% in listing fees, saving $7,000 on average.
Pros and Cons of Selling a House As Is
|✅ Pros||❌ Cons|
|May be less stressful than preparing a home for sale||Most likely will sell at a much lower price|
|No need to cover major repair costs||Buyer may walk away if there are undisclosed material issues|
|Reduces back and forth on contract negotiations||May create a perception of issues with the home|
What Does It Mean to Sell Your House As Is?
Selling your house “as is” means the buyer purchases the house without any repairs or credits toward repairs to the home. A real estate agent can help you draft your listing with the appropriate “as is” language in the description.
Some states require sellers to disclose known issues that would decrease the value or desirability of the home. In some cases, state law may require the buyer to sign a waiver that says they are aware that they are buying the house as is and will not hold you, the seller, liable for any undisclosed issues.
|🚨 Expert Tip: States that don’t require disclosure are known as caveat emptor states, which is Latin, meaning, “let the buyer beware.” These states include Alabama, Arkansas, Georgia, Massachusetts, Missouri, Montana, New Jersey, Virginia, and West Virginia. In caveat emptor states, sellers don’t have a duty to disclose issues with the house as part of the sale.|
That said, the buyer can still schedule an inspection during the due diligence period — provided it is included in the contract. If an undisclosed, material issue is revealed during inspection, you won’t have to make any concessions based on the inspector’s finding, but the buyer may use it to get out of the deal.
How Much Do You Lose Selling a House As Is?
The biggest downside to selling your house as is: you may have to accept a lower price point. How much you could lose varies, but you could see a significant drop in your home’s value.
Even if the listing price factors in the condition of the property, buyers will likely consider the cost of necessary repairs when making their offer. For example, if an inspection reveals a major foundation issue that wasn’t disclosed, the buyer may offer $10,000 less than the listed price.
If you’re looking to sell quickly and don’t mind taking a lower price, then selling as is may be the right choice for you.
You might consider an as-is sale if you need to move quickly for personal reasons, like relocating for work, or if the home needs significant repairs that you don’t have the time or money to make. But if you’re not in a hurry to sell and are willing to make the necessary repairs, you will most likely get a higher price with a traditional listing.
A realtor can tell you what your home may sell for as is, taking into account any necessary repairs. They can also tell you updates will make the biggest impact and help reduce losses if you opt for an as-is sale.
If you need advice from an agent in your area, our friends at Clever Real Estate can help! Clever is a free service that connects you directly with the best real estate agents from top-rated brokers, including Keller Williams, RE/MAX, and more. A qualified agent can advise you on how your local market is trending, and whether it’s worth it to sell as-is.
Whether you want to sell as-is to meet a tight deadline or simply save on repair costs, Clever can also help you reach your goals — thanks to pre-negotiated listing fees of just 1.5%. For the average seller, that translates to $7,000 in savings, just for finding a great agent through Clever!
Which Factors Affect How Much You Lose Selling As Is?
- Type of buyer: An investor looking for a fixer-upper may be willing to pay more for an as-is property than a regular buyer who wants a move-in-ready home.
- Condition of the home: A home that is in good condition will generally sell for more than a home that needs major repairs, even if it’s listed “as is.”
- Improvements and updates: Some home improvements and updates can add value to your home, making it easier to sell as is. For example, an updated kitchen or bathroom might help you get a higher price — even if there are other disclosed issues.
- Location: A home in a desirable neighborhood (with good schools, shops, hospitals, etc.) generally sells for more than a home in a less desirable area, even if it needs repairs.
- Market conditions in the area: A hot housing market may mean you can sell your house as is for a higher price.
- Your real estate agent: Working with an experienced real estate agent can help you get the best price possible when selling your house as is. Plus, if you choose a low-commission agent (https://go.homebay.com/homebay-clever-flat-fee” rel=”nofollow”>Clever Real Estate has great options here), you can recover some of the money you may lose selling as is.
How to Sell a House As Is
If you decide to sell your house as is, there are a few things you can do to streamline the process:
- Get an accurate estimate of your home’s value: Deferred maintenance and structural damage can cause issues that can lower your home’s market value. Get a home appraisal and work with an experienced real estate agent to identify issues and set a realistic asking price to avoid leaving money on the table.
- Make any necessary repairs: Even though you’re selling as is, making small repairs can help you sell more quickly and for a higher price. Likewise, addressing safety issues or code violations can make your as-is listing more appealing to potential buyers.
- Clean and declutter: A clean and decluttered house allows the home to shine and may help you sell more quickly. If there’s room in your budget, staging can also make your home more appealing to potential buyers.
- Hire a low-commission real estate agent: If you haven’t already, hiring a local real estate agent can help you get the best possible price on your as-is listing and navigate your state’s disclosure requirements. A discount broker can ease the financial consequences.
Should I Sell My House As Is or Fix It Up?
If you have limited time to sell or don’t have the budget to make big repairs and don’t mind sacrificing a percentage of your listing price, selling your house as is might be a better fit for you. But that doesn’t mean that you can’t fix up the house a bit before selling it as is.
If you have the time and resources, these are some repairs that are worth making to earn the most money from your as-is home sale.
- Health and safety hazards: Address any health or safety hazards in your home, like repairing broken stairs, fixing a leaky roof, or dealing with mold or asbestos.
- Code violations: Take care of code violations in your home, like getting a permit for that deck you built, or fixing up violations cited in a previous inspection.
- Structural repairs: Repair structural problems, like a cracked foundation or termite damage. These repairs can be expensive, so potential buyers may be hesitant to purchase a home with significant structural issues.
- Curb appeal: Spruce up your home’s exterior before listing it for sale. This may include power washing the siding, planting flowers, and mowing the lawn.
If you decide to fix up your home instead of selling as-is, also consider these improvements:
- Kitchen and bathroom renovations
- Cosmetic repairs
- Replacing major appliances
Alternatives to Selling a House As Is
If you’re not sure whether or not to sell your house as is, there are a few other choices to consider.
- Fix up the home before listing it: If you have the time and money to make repairs or updates to your home, you may be able to sell it for a higher price than if you list it “as is.”
- Sell to a cash buyer: Some companies and independent real estate investors buy houses as is, regardless of the condition. Target these buyers if you need to sell quickly and don’t have the money to make repairs.
- Rent it out: If you live in a strong rental market and don’t need cash for a down payment on another home, consider renting out your home instead.
No matter what you choose, a real estate agent can simplify the process of selling your home and figure out what repairs you need to fix — and what you can leave — before listing your house on the market. Connect with an agent who save you thousands in listing fees!
Frequently Asked Questions about Selling a House As Is
Is Selling Your House As Is a Good Idea?
Selling your house as is might make it sell a little faster, but it could also mean losing 15-20% of your home equity and potentially making buyers think that there’s something wrong with the house. Look into the downsides of selling your house as is.
Is It Better to Fix Your House Up or Sell As Is?
If your home needs significant repairs that you can’t afford or can’t do yourself within the window of time you have to sell your house, it might be better to sell your house as is. Otherwise, it is definitely worth doing some repairs to raise the value of your home before selling. Learn more about selling your house as is.