Selling a House As-Is in Illinois

Fast facts about selling a house as-is in Illinois

Median sales price in Illinois	$295,000 (August 2024)
Average days on market for Illinois	23 days (August 2024)
Disclosures	Illinois law requires sellers to disclose material facts about the property through the Illinois Association of Realtors Residential Real Property Disclosure Report.
MLS has field to mark a listing as-is?	No. As-is could be included in the listing’s public or private remarks.
Is a real estate attorney required?	Real estate attorneys are not considered essential for closing in the state of Illinois.
Real estate transfer taxes?	State Tax: $0.50/$500 at a rate of .10% County real estate transfer tax (optional): $0.25/$500 at a rate of .05% Home rule municipalities with a population over 1M may impose an additional transfer tax of up to $1.50/$500

What is as-is condition in real estate?

As-is is a type of home sale in which it’s understood that no improvements will be made to the property. When selling a house as-is, the seller chooses not to entertain buyers’ requests to complete repairs or provide a credit for fixes.

An as-is sale may also indicate that the functionality and longevity of certain home components, such as a stove on its last legs or an older roof, are not guaranteed.

When selling a house as-is, the general condition of the property should already be accounted for in the purchase price of the home to the best of the seller’s knowledge.

Which types of homes are sold as-is?

Homes sold as-is often need some work or may be cosmetically outdated. It’s not a label you’re likely to put on a listing in pristine, move-in-ready condition.

As-is sales often attract investors searching for their next flip or buyers seeking a bargain, perhaps on a home in a great location with lots of potential.

“Older houses — 50 to 100 years old — are the most likely to be listed as-is,” Bullington says.

Typically, the owners have lived at that address for a long time. “The house is probably outdated; but, usually, there’s more at play than just cosmetics,” says Bullington.

What started as deferred maintenance is likely to have morphed into a bigger problem. For example: over time, an ignored small leak in the roof can morph into an attic filled with toxic mold.

“Owners may have a sense that something’s wrong with the home; but, they just don’t want to deal with it,” she says. “At a certain time in your life, if you’re not able to make those repairs yourself — and contractors are hard to find — then you may be more likely to sell your home as-is.”

What problems do you have to disclose in Illinois?

Selling a house as-is in Illinois doesn’t mean sweeping known problems about the house under the rug.

A good time to fill out the Illinois Association of Realtors Residential Real Property Disclosure Report is prior to listing your home or requesting an offer so that you know it’s taken care of.

According to the document, the seller “has prepared this statement and certifies that the information provided is based on the actual notice or actual knowledge of the seller without any specific investigation or inquiry on the part of the seller.”

The form will walk you through documenting what you know about:

Hazards, disputes, or violations

• Flooding or recurring leakage problems in the crawlspace or basement
• Location of property in a flood plain or flood hazard insurance on the property
• Unsafe conditions in the drinking water
• Current infestations of termites or other wood-boring insects
• Structural defect caused by previous infestations of termites or other wood-boring insects
• Boundary or lot line disputes
• Notices of violation of local, state, or federal laws or regulations in which the violation has not been corrected

Material defects in the structure or systems

• Basement or foundation (including cracks and bulges)
• Roof, ceiling, or chimney
• Walls, windows, doors, or floors
• Electrical system
• Plumbing system (including water heater, sump pump, water treatment system, sprinkler system, swimming pool, etc.)
• Well or well equipment
• Heating, air conditioning, or ventilating system
• Fireplace or woodburning stove
• Septic, sanitary sewer, or other disposal system

Unsafe conditions related to the home

• Radon on the premises
• Asbestos on the premises
• Lead paint, lead water pipes, lead plumbing pipes, or lead in the soil on the premises
• Underground fuel storage tanks on the property
• The property’s use for the manufacture of methamphetamine as defined in Section 10 of the Methamphetamine Control and Community Protection Act
• Mine subsidence, underground pits, settlement, sliding, upheaval, or other earth stability defects on the premises

No matter what method you choose to sell your home, it’s required to make these disclosures to the best of your ability.

Illinois does not allow exceptions for sellers who haven’t lived in the home. The first question on the disclosure forms asks whether the seller is living in the home. If the answer is no, sellers still need to fill out the form to the best of their ability.

Or, as Bullington says, “The only time they’re not required to disclose is if it’s an estate and they’re dead.”

Review your options to sell as-is in Illinois

The main options to sell a house as-is include:

List as-is with the help of a real estate agent

A great real estate agent will provide assistance throughout the process of listing and selling a home as-is. An agent gives simple presentation tips to improve marketing, helps to set an appropriate price that reflects the home’s condition, and works to find a buyer willing and eager to buy your home in its current state.

Bullington’s approach to as-is sales is largely informed by her client’s mortgage status. “If owners want to sell as-is and don’t have a lot of equity in their house, it’s hard to take a discount,” she explains.

In those instances, Bullington recommends the sellers put enough work into the house so they can generate an offer that will allow them to get out of the property.

However, “If sellers have plenty of equity and they just want to be done with the property and sell as-is, then they’re going to need to be more aggressive on lowering the price.”

As far as marketing, Bullington maximizes the power of the public and private remarks fields in the multiple listing service (MLS). “Using as-is in the public remarks can be helpful because you’re setting the expectations right up front for the consumer,” she explains.

“However, if the condition of the property is not that bad and the sellers simply don’t want to deal with repairs, it can deter potential buyers.”

In those situations, Bullington describes the home as-is in the private remarks, which are available to agents only. That strategy often prevents the home from being knocked out of consideration before it’s shown. And, “When agents show the house, they can help their clients understand the situation,” she says.

Sell directly to a cash buyer

Someone needing to sell their home as-is can also work directly with a property investor or house buying company rather than list, where it may be difficult to get an offer from a limited buyer pool.

We Buy Houses operations buy as-is at a discounted rate and generally seek out homes in need of significant repairs. These companies can help sellers cash out quickly and many will cover a seller’s closing costs.

The level of integrity and customer service you experience can vary, even within an established house-buying company that strives to maintain consistent business standards. This is because many We Buy Houses companies are franchises and often use independent investors or local wholesaling outfits. Your experience greatly depends on the character of the person or group making the offer.

If you are considering a cash offer, vet the company thoroughly. Check reviews, read testimonials, and research its presence and performance in the market. And, of course, read the buying agreement carefully before signing.

Steps to list as-is with the help of a real estate agent

Find an agent willing to list the home as-is

Your choice of real estate agent always matters, especially when selling a property as-is. It’s important to find the right match. You’re looking for an agent who doesn’t shy away from listings that need a little TLC and maybe has a strong network of investor connections.

Your agent should also be willing to go the extra mile on marketing. Considering nearly 70% of Americans say they would prefer to buy a turnkey home, an as-is sale likely has a reduced buyer pool from the start.

“If you’re selling an as-is property that had some deferred maintenance, the obvious buyer is an investor,” Bullington says.

She advises partnering with an agent who has experience in flips or rental property ownership. Because these agents are (or have been) investors themselves, Bullington says, “they can price distressed properties more easily, know what projects are worth tackling, target the right buyer, and already know investors who are looking for those types of properties.”

Consider a pre-listing inspection

A pre-listing home inspection is the same as a standard home inspection except that the seller pays for it before listing their home on the market. It may sound like a counterintuitive step for an as-is sale, but getting the inspection results upfront can illuminate any issues that could impact the value of the home and inform an accurate pricing strategy. If a buyer requests further deductions to the price based on their own inspection, you may be able to point to how the estimated cost of certain repairs was already baked into the list price.

Since the seller has to disclose known problems, Bullington finds most as-is sellers avoid investigating issues because of the potential to uncover expensive problems that will lead to lower offers.

However, “If you know the house is really distressed and you want to sell it, over-disclose,” she advises. Even though it can be painful and tedious to chronicle all the issues, transparency usually pays off in the end. “It makes buyers feel more comfortable in knowing what they’re getting and more willing to take a chance.”

In some instances, “If you’re still not getting traction [for a sale], doing a home inspection might provide some peace of mind for potential buyers,” says Bullington.

Price to reflect as-is condition

The median sale price for homes in Illinois hit $295,000 in August 2024, a 5.4% increase over the same period last year.

Bullington says homes sold as-is in the area typically are listed for 5%–10% less than regular listings.

According to Bullington, some of the top factors that impact the value of an as-is listing in Illinois include the age and condition of the roof, HVAC, and water heaters. Buyers are also concerned about the structural integrity of the foundation — particularly if it’s brick — and any cracks or other indicators of potential problems evident in the basement.

While they may not be significant in neighboring states, radon and termite status might also be important factors in the sale of as-is properties in Illinois.

You can start with a free estimate from HomeLight’s Home Value Estimator (HVE).

Our HVE combs public data, including tax records and assessments, and pulls recent sales records for other properties in your neighborhood. Using a short questionnaire, we also factor in specifics about your home, such as the property type and described condition. Input your address, and we’ll provide you with a preliminary home value estimate in under two minutes.

Do ever-so-light preparations

Since the term alone should lower expectations, staging isn’t necessary in an as-is home. However, it can speed up the sale of your home.

Particularly if the property is small, in fair condition, and doesn’t require large-scale demolition to fix structural issues, Bullington might recommend a fresh coat of paint and new flooring.

“Sometimes doing some easier updates actually makes people feel like the house has been paid attention to and maybe it isn’t as neglected,” she says, “And, it’s one less thing [for the buyer] to do.”

Other small steps you can take to reap large rewards are:

• Hire a landscape crew to mow the lawn and cut back overgrown foliage. Get rid of broken stepping stones, flower pots, or other hardscapes that make the outside look neglected. Nearly all Realtors (97%) consider curb appeal crucial for attracting buyers, according to the National Association of Realtors (NAR).
• Declutter. Some buyers might overlook outdated wood paneling and popcorn ceilings, but no buyer wants to purchase a home filled with junk from floor to ceiling.
• Deep clean every room in the house, including cleaning the carpets, kitchen cabinets, and bathroom tiles.
• Let the light pour in by removing blinds, opening windows, and putting fresh bulbs in lamps.
• Pitch worn-out furniture, accessories, and anything that has a stale or musty odor — but don’t leave it mounted, on the porch, in the backyard, or at the curb.
• Replace that old furniture with neutral transitional or contemporary pieces to help buyers envision what the house will look like if remodeled.

Photograph to show potential

Your home listing warrants professional photography regardless of its condition. A professional photographer will take steps to shoot each room from the best angle, ensure optimal interior and natural lighting, and edit for the ideal brightness and exposure.

A high-quality camera with a wide-angle lens is also essential to showcasing entire rooms rather than half or three-quarters of what’s there. For these reasons and more, professionally photographed homes can sell up to 50% faster and increase online views by 118% more than houses marketed without professional photos.

Your real estate agent will almost always arrange for professional photos as part of the listing process.

Highlight the surrounding area

A home’s location will be important to buyers seeking out a home with potential.

Selling a distressed house in an in-demand neighborhood sometimes brings multiple offers. But, a street address alone may not be enough for a quick sale.

“For each house, investors and buyers really have to pay attention to just the neighborhood specifics,” says Bullington. “For example, Bloomington-Normal is three or four miles wide, and we have tons of different areas. You really have to evaluate each specific house in the context of the neighborhood to know if it’s a worthwhile investment.”

That’s why it’s important to mention whether your home is in a neighborhood that is being revitalized or close to any of the following:

• Excellent schools
• Close to shops and restaurants
• Walking distance to parks
• Safe and quiet streets
• Convenient public transportation
• Easy freeway access
• Neighborhood association pool
• Golf courses

Include as-is in the listing

Unless you explicitly mention that your house is being sold as-is, buyers will have no idea of your intentions with the listing. Other common descriptors mentioned in as-is listings in Illinois include priced to sell, estate for sale, needs TLC, or calling all investors.

To balance the focus on as-is condition, work with your agent to craft a property description that highlights the home’s best features, such as hardwood floors, historic details, high ceilings, and exceptional handwork or craftsmanship.

Ultimately, Bullington says the art of selling an as-is home is not always about detailed descriptions. “You don’t even have to use any fancy words,” she says. “If you cannot fix the condition, then you fix the price — and that’ll do it.”

Understand buyers may still negotiate

Listing as-is provides no guarantee that buyers won’t try to negotiate savings on their purchase, even on an asking price you felt was already reduced to reflect the home’s condition. One of the best defenses you can have is an agent who takes a hard stance to prevent a deal from going south for the seller.

Listing all the flaws of a home can be overwhelming for longtime residents who have ignored repairs and maintenance for years. However, Bullington advocates taking the time to produce a complete inventory of issues that need to be disclosed and being as transparent as possible.

“If you can have those conversations and set those expectations up front with a buyer,” she says, “it will translate into an easier sale.”

Be aware of minimum property standards for certain loans

When you place your home on the market, it’s hard to predict if your top offer will come from a cash buyer or a buyer pre-qualified for a home loan.

But if you do end up working with a financed buyer, be aware that different mortgage types (such as conventional loans or government-backed FHA, USDA, or VA loans) have different minimum property standards. These are standards related to the overall condition of a property, which will play a role in the willingness and/or ability of a lender to finance a buyer’s loan.

Before properties can be financed, their value and condition are typically examined by a state-licensed, independent appraiser contracted by the buyer’s mortgage company.

If you’re unsure whether your home will meet appraisal requirements, you can start by taking a look at the FHA minimum property standards. If your house complies with FHA, then it complies with most other lenders’ requirements.

Prioritize a cash offer if you receive one

On occasion, conventional lenders may even finance a fixer-upper property sold as-is, and it’s not impossible to finance a fixer-upper with an FHA loan. However, if you’re selling a house as-is — especially one that needs heftier repairs — you may want to consider accepting a cash offer if you receive one. Cash eliminates the lender-ordered appraisal as well as the time it takes to close on the buyer’s loan, creating a faster and clearer path to settlement.

For buyers to become eligible for a loan, the property usually must meet certain safety and habitability standards. The lender typically contracts with an independent appraiser to ensure the home meets these criteria.

“A cash sale doesn’t need to go through an appraisal or lender’s approval process, so there’s no need to make repairs and meet certain standards,” says Bullington. “The buyers can just purchase the property and continue on with their plans. It’s nobody else’s business.”

Steps to sell directly to a cash buyer

Now that we’ve covered the general process of listing a home as-is, let’s discuss the alternative of working with an investor. While the process varies from business to business, the steps to selling your home to a house buying company typically go something like this:

1. Decision: A homeowner decides a traditional listing isn’t for them. Perhaps their house needs a lot of work, or they do not want to host any showings or open houses. They’re concerned about finding a buyer willing to purchase their home in its current state.
2. Contact: A seller contacts a company that buys homes in their area and provides some basic information about their home.
3. Preliminary offer: At this stage, some housebuying companies will provide a preliminary offer that is subject to change after a house assessment.
4. Assessment: The company schedules a walkthrough of the property to evaluate its condition, usually within 24 to 48 hours.
5. Firm offer: The company makes a firm offer (usually within 24 hours, sometimes on-site after the walkthrough), which you can accept or decline. Most of these companies will not negotiate on price, so the offer is a take-it-or-leave-it scenario.
6. Closing: If you accept the offer, you and the company will each sign the contract, and closing will begin. Some companies offer a large deposit or moving cost assistance, and a few may even pay for the home upfront.
7. Payment: The seller receives payment quickly, typically within seven days to a few weeks. This can vary by company, and sellers who work with a house-buying company often enjoy flexibility in selecting a move-out date that works for them.

If you aren’t sure where to get a cash offer, consider Simple Sale, a solution from HomeLight. With Simple Sale, you tell us a bit about your home, such as whether it’s a single-family or condo and how much work it needs. From there, we’ll provide you with a no-obligation cash offer to buy your home within 24 hours.

Skip repairs

No need to call the roof inspector or drain your savings to replace the HVAC. HomeLight will provide an offer for homes in almost any condition.

Sell when it’s convenient

Want to get out right away? Or need a little more time to pack? Either way, we’re flexible. Pick a move date that works for your schedule within 30 days of closing.

Close with certainty

Cash buyers don’t need a lender’s involvement to purchase a home, meaning they can move nimbly and quickly compared to someone who needs financing. With Simple Sale, you can close in as little as 10 days, compared to 43 days, the average closing time with a financed buyer.

Curious to know more about the Simple Sale experience? Hear it firsthand from one of our valued clients in the video below.

Additional We Buy Houses companies in Illinois

Below, we’ve compiled a list of some of the leading companies that purchase homes as-is for cash in Illinois and information about each.

Pros of selling as-is to an investor:

• Save money on home preparations.
• Sell fast — receive an offer in as little as a few days, and close as quickly as one to two weeks later.
• Skip repairs. Most house-buying companies purchase properties in as-is condition, even those that need major repairs.
• No staging. No repeated showings. No open houses.
• Arrange for a flexible move-out date.

Cons of selling as-is to an investor:

• Offers are likely to be much lower. Investors typically pay 70% of what they estimate to be the home’s after-repair value.
• Sellers will have little room to negotiate. Most cash buyer offers are going to be “take it or leave it.”
• Although many home-buying companies are legitimate, some are not. It’s always a good idea to be vigilant about possible scams.

How much will you make from an as-is home sale?

There is no simple equation for calculating how much you’ll net from an as-is sale. If you list on the market with an agent, you’ll need to account for the cost of agent commissions (around 3%-5.8% on average) and other closing costs, such as title fees and taxes, but are likely to field higher offers from buyers and see more competition for the home.

Different types of investors and house-buying companies also offer varying amounts for homes, largely dependent on their exit strategy. While fix ‘n’ flip investors usually pay around 70% of the home’s after-repair value, buy-and-hold investors who plan to rent out your property may be able to pay more.

In addition, investors are often willing to cover a seller’s closing costs, which can add up to around 1%–3% of the sale price. HomeLight’s net proceeds calculator can be helpful for analyzing some possible selling scenarios and estimating your take-home pay.

“There are so many little factors that go into it, and the market is changing so quickly, it’s nearly impossible to predict how much an owner can make on an as-is sale,” Bullington says.

Ready to sell your house in Illinois?

While every home sale is different, you should now be familiar with the general process of selling a house as-is in Illinois. Now, you can begin to weigh which method will work best for you.

“I feel like as-is is a last resort,” notes Bullington. “If you can manage not to do it as-is, you will have more buyers.”

To make sure as-is is your best strategy, she suggests asking your agent to generate an estimate of what you could expect to make if the property is sold as-is versus a traditional sale. “You might be swayed to do a little bit of the work and not sell it as-is,” she says.

Another option is to pursue a traditional sale with some features of the home sold as-is.

“You don’t have to do as-is on everything,” she explains. “If you specify two or three items are being conveyed as-is, they don’t fall under your inspections, and it sets the right expectation that these items are off the negotiating table.”

Bullington’s experience shows that strategy often attracts more buyers who are less scared and, ultimately, results in a quicker, more profitable sale.

Whether you choose to list as-is with a real estate agent or work with a direct home buyer, a home doesn’t have to be in perfect condition to sell — so long as you provide disclosures as necessary, set the right price, and know what to expect going in. Whenever you’re ready to take the next step, HomeLight would be happy to assist with your real estate needs. Connect with a top agent near you or get started with a cash offer from Simple Sale.

Header Image Source: (Derek Torsani / Unsplash)