Selling a House As-Is: What You Need to Know

What it means to sell a house as-is | How much can you lose? | Should you sell your house as-is? | Options for selling

Selling a house as-is is the process of selling your home in its current condition without making any repairs or improvements. It can be an appealing option for homeowners who don't have the time or money to make any repairs before selling.

Before considering whether or not to sell your home as-is or make repairs, speak with an experienced real estate agent for more personalized advice. Clever can connect you with a great local realtor who can bring you cash offers from iBuyers and real estate investors in your area. Get fair cash offers from top local buyers now!

What does selling a house as-is mean?

Selling as-is means you sell your house in its current condition without making any pre-listing repairs or upgrades. Buyers won't request any repairs as part of their offers, even if a home inspector finds serious issues, like a leaky roof or plumbing (but they still have the right to get the home inspected).

Here's how the process typically works:

1. You market your home to be sold in as-is condition. Your real estate agent mentions it in your listing description and when discussing your home with buyer's agents and their clients.

2. Potential buyers and their agents view your listing with the understanding that you won't make any repairs to the home before selling.

3. Buyers put in an offer that reflects the condition of your home and the potential cost of repairs.

As-is homes usually get priced lower to account for the potential cost of repairs and attract more buyers looking for a deal.

How much can I sell an as-is home for?

Your home's condition and the local housing market are the main factors that affect how much you may gain (or lose) on your real estate transaction. While selling a house as-is saves you on making repairs, you may need to sell your home for below its fair market value to account for those costs.

Listing your home as-is will likely attract offers from real estate investors, companies that buy houses for cash, and iBuyers. These prospective buyers typically pay 70% or less of a home's after-repair value (ARV), or the fair value of the home after repairs. However, homes only needing minor repairs or cosmetic improvements will likely sell at closer to a home's ARV, about 80–95%.

Should I sell my house as-is?

Selling your house in as-is condition can be a good choice for you if you:

Need to sell a house ASAP

It could take weeks (if not months) to find a contractor, secure bids, and complete repairs and improvements to your home. Selling as-is lets you bypass having to make those repairs yourself.

» MORE: Need to Sell Your House Fast? Here Are 4 Ways to Do It

Can't afford to invest in repairs or upgrades

Selling as-is can potentially save thousands of dollars in up-front expenses. For example, you can avoid a costly pre-listing inspection or any high-cost repairs you may discover on it.

You may want to invest in high-ROI projects that boost your home's value before listing, like painting and landscaping. But if you don't have the money to make any repairs or updates at all, you can simply lower your listing price to reflect your home's current condition.

If you'd rather negotiate credits for repairs with a home buyer than pay for them yourself, it's probably worth skipping the repairs and discussing negotiating tactics with your realtor.

How do you sell a house as-is? Your options

Homeowners looking to sell a house in as-is condition should consider selling to cash home buyers, selling to iBuyers, or listing on the open market.

Cash buyers

Cash buyers include "we buy houses" companies and local real estate investors. They aim to make the home sale process as hassle-free as possible, forgoing any home improvements, providing cash offers in just a few days and closing in as fast as a week or so.

That speed and convenience does come with a price: cash buyers typically pay no more than 70% of a home's after–repair value. If you need to sell ASAP, cash buyers are a legitimate option. But we highly recommend comparing offers from multiple cash home buyers to get the highest price possible.

Connect with Clever to start comparing your options. Clever will collect offers from top cash buyers in your area and provide you with a free home valuation report to help determine if the cash offers are fair.

iBuyers

Real estate companies like Opendoor and Offerpad purchase homes in as-is condition. They can provide you with an offer in a few days and close in as fast as two weeks. iBuyers typically don't pay as much for your home as what you'd earn in the open market, but you'll likely get a higher offer than cash buyers.

There are some drawbacks to consider. While iBuyers won't ask you to make any repairs, they make deductions for repair costs. iBuyers also have specific purchase criteria and only operate in select markets, so it may not be an option for you.

Open market sale

You can list your home to be sold as-is in the open market with a realtor. An open market sale allows you to advertise your home to a wide pool of buyers, including, but not limited to, cash home buyers.

However, consider a few cons:

• You may get fewer offers than if you made the repairs yourself and then listed.

• It could take weeks (if not months) longer to sell as you need to find the right buyer.

• Your home may sell at a lower price, depending on the severity of the repairs needed.

• You'll need to pay realtor commissions and seller closing costs.

Ask a local real estate professional for more specific advice on whether or not an open market sale makes sense for you.