Selling a House As-Is: Pros, Cons, and How to Get a Fair Price

Why do people sell a house as-is?

There are a number of reasons that a seller would choose to sell a house as-is.

Need a faster sale

If you want to sell your house quickly, selling it as-is can help you eliminate some of the steps that often cause delays or just take time. The buyer may still request a home inspection so they know exactly what they’re getting, but you won’t have to tackle any repairs that could hold up the sale.

Jeff Lurie, a real estate agent in Suffolk, Virginia who works with 85% more single-family homes than the average Suffolk agent, frequently sees this in his market. In some cases, an as-is sale is a result of a military move.

Lurie says he sees situations where “a military family is getting a permanent change of station (PCS) from point A to point B. The house is generally in good condition, but they just don’t have the time or the money to do the work.”

Can’t afford repairs

Repairing or renovating a home can be expensive and isn’t always financially feasible. Selling as-is allows you to move forward with the sale without making a huge investment or tying up money you need for other purposes.

Want to save money and time on repairs

In some cases, sellers can afford the needed repairs but don’t want to undertake the cost and time required to complete them. Lurie says that even when repairs or upgrades are needed, it’s not always clear what to fix and what not to fix when selling a house.

“I wouldn’t want them to spend $5,000 on having new carpet installed just to drive by and see the carpet piled up on the side of the road two weeks after closing because somebody wanted hardwood floors,” he adds.

Face a critical or unexpected financial situation

In the event of a lost job, a medical emergency, an impending bankruptcy, or any other unexpected financial crisis, selling a house as-is can provide needed funds quickly.

Skip the hassle of dealing with an inherited property

If the property is inherited, trying to sell it can come with additional stress from the loss of a loved one. Or if multiple family members inherited it, coordinating repairs and payments can be difficult, especially if the family members live in different states. Selling as-is can greatly reduce this stress.

While you may get less money with an as-is sale, it can significantly streamline the process. There are buyers who are willing to take a chance on an as-is property. Selling a home to an investor or home flippers are usually looking for a deal. In some cases, people will buy an inherited home in its current condition, including any belongings left inside.

Avoid foreclosure

Selling a house as-is can help it sell quickly in order to avoid foreclosure. In some cases, this results in a short sale, which is a complicated process that results in selling the home for less than it’s worth.

The short sale process can be fairly quick, and if you’re working to avoid foreclosure, it’s likely that repairs will take too long and be too expensive. Selling the house as-is can expedite the process.

Deal with unexpected life changes

A new job that requires a quick move to a new city or a divorce that leaves a house to deal with are examples of life changes that might require you to sell a house as-is.

Is selling my house as-is a good choice?

As with any decision, there are pros and cons of choosing to sell your home as-is. Let’s take a look at a few.

Pros of selling a house as-is

Close on a house fast

Getting ready for a traditional home sale can take as little as six weeks, but often the preparation process takes much longer. Selling as-is can allow you to get your home listed on the market faster.

As of November 2024, listed properties were on the market for 32 days, according to recent data from the National Association of Realtors (NAR). Depending on the market and the condition of your home, full home preparations could take longer than finding a buyer. If selling fast is the goal, selling as-is may be one way to achieve it.

Attract a cash buyer

Often, cash buyers are attracted to as-is homes and the prospect of getting a deal. With a cash offer, you won’t need to worry about mortgage approvals or other contingencies and risks that could cause the transaction to fall through.

Another way to sell an as-is property is with HomeLight’s Simple Sale platform, which provides you with an all-cash offer for your home, allowing you to skip the repairs, prep work, and open houses.

After answering a few simple questions, you can receive an all-cash offer within 24 hours and close your home sale in as few as 10 days.

Spend less on the home sale

If the budget is tight, selling as-is can help you avoid the upfront costs associated with selling a home. You won’t need to spend money on renovations, staging, and holding costs. If you need to do repairs, you may simply tackle smaller, inexpensive issues, such as a leaky faucet, a broken hinge, or clutter, which might deter buyers.

Reduce back-and-forth negotiations

While you may not be able to invest much in the property, it’s advisable to keep the lines of communication open. Will Gaskins, who sells properties 67% faster than average Washington DC and Northern Virginia agents, tells his clients to engage in the home inspection process and consider buyer requests.

He reminds them that they still have the right to say no, but at least they’ll get to have a conversation about things. “We want a win-win,” Gaskins says. “We want the buyers to feel good about the transaction, and we want the sellers to feel good.”

But you still have the option to negotiate concessions like closing cost assistance based on work that is needed. For instance, Lurie says that in some cases, it’s possible to “work it out with concessions versus making them do repairs before closing. Sellers are more apt to give concessions than to do the actual work.”

Cons of selling a house as-is

Sell to a limited buyer pool

When potential buyers see those two little words in listings, it usually denotes that there is something wrong with the property and can deter some buyers who don’t want to make repairs. “When I see the words as-is, I tell the buyers don’t even bother with it,” says Debra Blanchet, a Providence County, Rhode Island agent with 36 years of experience.

Listing your home as-is can decrease the number of buyers who will come look at it. Gaskins believes this sends a bad message, “It tells people this is a disaster.”

If your goal is to sell your home quickly, he recommends you attract buyers with your openness to negotiating instead of using the as-is tag. You can still say no to their requests (which may lead to a decrease in what they’ll pay), but at least you’ll have people willing to look at the home and make an offer.

Deal with a buyer backing out

The potential buyer still has the right to ask for a home inspection even if you state you’d like to sell as-is. They also have the right to ask you to fix problems that the inspection turns up.

If you refuse to engage in a little give and take with the buyer, it could lead to you having to sell the property way below what it’s worth, or the buyer will simply walk away, and you’ll have to go through the process all over again.

Even if a buyer is willing to buy a house as-is, they can still have an inspection and decide not to buy the property if issues arise that weren’t listed on the seller’s disclosure. A way to be prepared for this is to have your own inspection done before you list the property so you are aware of any and all of the issues.

How much do I lose selling a house as-is?

Several factors impact the home’s final sale price and how much you could lose selling as-is rather than making repairs and selling a turnkey property. It really depends on the current state of the overall market, your local market, and the state of the property.

A property selling as-is with no major structural issues will be in a different situation than a property selling as-is with a crumbling foundation. Your real estate agent will have a good idea of the local market and be able to advise you on how much you could lose selling as-is.

One option some sellers choose is to sell their home as-is to an investor or iBuyer company (instant buyer) for an all-cash offer. This allows the seller to skip the repairs and showings and get a fast closing. But the convenience comes at a cost. Investors who fix and flip houses pay significantly under a home’s value compared to what the owner might get selling as-is on the open market with an experienced agent.

iBuyers typically pay more than flippers, around 85% to 95% of a home’s value. With investors or iBuyers, you might lose tens of thousands of dollars. However, depending on the as-is condition of your home, an all-cash offer from a house-buying company might be the solution you need.

HomeLight’s Simple Sale platform could be another option for you. This platform connects you with one of the largest networks of cash buyers in the U.S.

What if I want to address a few issues?

If you do want to tackle some repairs or a bigger issue like a new roof or kitchen upgrades, these are a few of the projects that lead to a good return on investment (ROI). The type of projects to consider also depends on why you want to sell the home as-is in the first place.

If you need the money that a home sale will bring, or if you’re on a strict timeline because of a relocation, these projects might not be a good fit. But, if you’re on the fence and have the time and money, here are some of the best ROI projects:

• Garage door replacement
  •  Average investment: $4,513
  •  Cost recouped: 193.9%
• Entry door replacement
  • Average investment: $2,355
  • Cost recouped: 188.1%
• Minor, midrange kitchen remodel
  • Average investment: $27,492
  • Cost recouped: 96.1%
• Fiber-cement siding replacement 
  • Average investment: $20,619
  • Cost recouped: 88.4%
• Deck addition
  • Average investment: $17,615
  • Cost recouped: 82.9%
• Midrange bath remodel
  • Average investment: $25,251
  • Cost recouped: 73.7%

Depending on the state of the property, doing some renovation could really impact the final sale amount because “the discount that’s usually associated with selling as-is is not usually the discount the seller wants,” Gaskins explains. “A red flag goes up, and people wonder what’s really wrong with the property.”

Decision time. Should you sell your house as-is?

If you want to sell your house as-is, the first step is to partner with a top agent who knows your local market. Working with an agent is paramount to making the right decisions about listing the house as-is and potentially negotiating with your buyers.

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It takes just two minutes to match clients with the best real estate agents, who will contact you and guide you through the process. To connect with an agent, simply tell us a little bit about your property and how soon you’re looking to sell.

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As you make your decision, consider the pros and cons of selling as-is as well as your current situation. If you want to skip repairs or upgrades, attract a cash buyer, need to move quickly, or are trying to sell an inherited property, selling as-is may be a good choice. Keep in mind that even if you list the home as-is, you still have the option to negotiate repairs with the buyer, which could help the home sell.

Header Image Source: (Nick de Partee / Unsplash)