Selling a House As-Is: Your Guide to a Successful Sale

An “as-is” sale allows a seller to list their home without spending time and money on costly repairs. It can seem like a simple solution if a seller doesn’t want to fix existing issues, but there is a tradeoff. 

Depending on the home's condition, an as-is sale could result in a lower return on investment. It’s wise to measure the opportunity for a higher sale price if you invest in required updates and repairs. Additionally, homes that are sold as-is often have a smaller pool of potential buyers who seek an investment opportunity, or a home that they can renovate to their specific preferences.  

An “as-is” sale is one where the seller does not make any repairs to the property, and the buyer will purchase the home in its current condition. 

“I often see as-is sales on properties that may need work, properties that come with tenants in place, and properties where the owner does not have the extra negotiating room to offer concessions for repairs or to pay for repairs,” says Alana Lindsay, a New York-based real estate agent with Coldwell Banker Warburg. 

Even if a house is listed as is, the buyer still has certain rights. The seller is obligated to disclose any known issues, and the buyer can negotiate the sale price and terms, including a home inspection contingency.

It’s common for buyers of homes that are sold as-is to have cash on hand to make the necessary repairs. This could include cash buyers with liquid assets who doesn’t mind embarking on a fixer-upper project, or a first-time homebuyer looking to break into the real estate market. Investors often seek as-is properties to flip the house for a profit. 

• You don’t have the cash available to make upgrades. If you can’t afford to spend thousands of dollars on home repairs and upgrades, then selling as-is may simply be your best financial option. 
• You don’t have any interest in remodeling. Remodels can be time-consuming and expensive. Making repairs and upgrades often results in a higher return on investment, but sometimes, the stress of doing so isn’t worth the financial payoff.
• You inherited the home. It’s fairly common for people who’ve inherited property to sell as-is. An inheritor may not have the cash to make changes, or the estate may require all assets to be sold within a certain amount of time after the death of a loved one. 
• The home is too far gone. If a house is in a teardown state, remodeling may not make financial sense. A total remodel could cost more than you receive in an offer. 

Selling a home as-is can save the seller time and money on repairs, potentially attracting cash buyers and leading to a quicker sale. However, it may result in a lower selling price and deter buyers who are put off by the need for repairs.

• You do not have to spend time and money on repairs. 
• You can typically get the house on the market quicker than if you were preparing the home for sale. 
• The buyer usually won’t ask for significant repairs or write in repair-based contingencies. 
• Cash buyers are often attracted to as-is properties, which could mean a quick closing after an offer is accepted. 

• The home may sell for less than it would have with repairs completed. 
• As-is homes typically spend more time on the market. 
• Many buyers will be turned off by a property that isn’t move-in ready. 
• You could lose interest from buyers who may assume you are unwilling to negotiate. 

Preparing your home for sale will look different when selling as-is. You won’t be remodeling or conducting any big-ticket home improvements, but it’s still a good idea to make the home presentable before listing for sale. 

Typically, the buyer pays for an inspection. However, it benefits the seller to conduct a pre-inspection in an as-is sale. Doing so allows you to be honest and upfront about what repairs must be made, and it can help you price the home appropriately. 

It’s important to be honest with sellers about the home’s condition and the scope of work needed to make it move-in ready. In most states, sellers are required to make mandatory disclosures. Failure to do so could result in legal action against the seller. 

Strategic pricing and marketing are essential in any home sale. The correct listing price will ideally attract many buyers. This is especially important with as-is sales, which typically sit on the market longer. 

Your real estate agent can help you determine a strategic price for your home. The right price will put lots of eyes on your home and possibly a bidding war. “Factoring in the price and time penalty for selling a home that may need work is key,” Lindsay says. 

Generally speaking, an as-is home will sell for between 15% to 20% below market value, according to U.S. News & World Report. However, this can vary greatly depending on your home’s condition and whether you’re in a buyer’s or seller’s market. 

Consider these factors when setting sale prices:

• Your local real estate market conditions. 
• The condition of your home. 
• Repairs required to make the home move-in ready. 
• The size of your home and property. 
• Additional features and amenities, such as a full basement, garage or pool.

Running a comparative market analysis (CMA) is a critical step in pricing any home. By comparing what similar homes sell for in your area, your real estate agent can help you determine how much your home is worth.

If you’re still working to find the right agent, a Home Valuation Report can provide an in-depth analysis to help you set the right price.

As you prepare to list your home, Lindsay suggests the following strategies to help attract the right buyers:

• Lead with positive attributes, such as the neighborhood, size or desirable features.
• Market toward your ideal buyer, such as real estate investors or first-time homebuyers.
• Stage the home virtually or physically to showcase its potential.
• Be honest about the property’s condition in the description.
• Use search-friendly keywords to get more eyes on the listing.
• Hire a professional photographer. 
• Price the property competitively. 

Negotiations are typical in any real estate transaction, especially for as-is properties. If you set a higher price than the market dictates, you could be flooded with lowball offers. Your home could also sit on the market longer than expected. Fewer buyers may be interested in a property that needs work, so pricing your home appropriately is key.

Selling as-is likely won’t result in negotiations and contingencies regarding significant repairs. However, some negotiations could still occur around small changes and the price. 

Buyers may hire an architect or builder to evaluate the cost of repairs and come back with an offer based on the prices they were quoted. Sometimes, the buyer may request a repair as part of the deal; it’s up to you as the home seller to determine if doing so makes financial sense. 

As you review offers, consider the length of time that the property has been listed and your real estate market conditions.

As-is homes typically sit on the market for longer. How much longer will depend on local demand and inventory, the condition of your home, and how the house is priced. 

“It will take longer in most cases to sell a property as-is,” Lindsay explains. “Not all buyers are willing and able to take on a property that may require extra funds to fix post-sale.” 

Cash offers typically move much quicker than those with financing. This is because the buyer doesn’t have to wait to be approved by a mortgage lender. Taking on a cash offer can move your timeline up. 

Another advantage is that because a cash buyer isn’t financing, they are not required to get a home appraisal to complete the sale. Appraisals can cause issues with financing as-is sales and delay the process. 

Selling a property as-is can be a good option for sellers who don’t have the time or financial means to make significant improvements before listing their home. However, doing so typically results in a lower return on investment, and the property may sit on the market longer than similar homes in move-in-ready condition. 

Consult your real estate agent to determine if selling your home as-is makes the most sense based on your situation and local market conditions.