Selling a House ‘As Is’ in Minnesota

Which types of homes are sold ‘as is’?

Homes sold as-is often need work or might be cosmetically outdated. It’s not a label you’ll likely 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.

“People use the phrase as-is, but what they have to understand is real estate isn’t this black-and-white sort of transaction. When someone says as-is, it can give the buyer a bad taste and can detract from the home because people are like, “Okay, they know something’s wrong; what is it?” says Brickle.

According to Brickle, the label can often turn off potential buyers, but it’s really due to a misunderstanding of what the term as-is means.

“I always tell sellers, instead of saying as-is, let’s just make sure that we’re open to a situation, and if that situation is that we have to reduce the price or negotiate,” he adds.

What problems do you have to disclose in Minnesota?

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

A good time to fill out a Minnesota Seller’s Property Disclosure Statement is before listing your home or requesting an offer so that you know it’s taken care of.

According to the document, sellers must disclose all material facts that can significantly affect the buyer’s use of the property.

The form will walk you through documenting what you know about the history of the property and any issues or problems encountered.

You’ll also be prompted to fill out information about:

Hazards, disputes, or violations

• Soil or settling problems
• Animal or insect infestations
• History of flooding
• Water leakage or seepage
• Fire or smoke damage

Material defects in the structure or systems

• Walls, windows, doors, or floors
• Basement or foundation
• Roof, ceilings, fireplace
• Electrical system
• Sewer or septic system
• Well or plumbing system
• Heating, air conditioning, and ventilation systems

Unsafe conditions related to the home

• Asbestos on the premises
• Radon on the premises
• Lead-based paint
• Underground storage tanks
• The presence of a landfill on the property
• Air pollution problems
• Odor problems
• Mold and mildew problems

No matter what method you choose to sell your home, you must make these disclosures to the best of your ability. However, Minnesota does allow certain exceptions for sellers who haven’t lived in the home, such as having a qualified third-party inspector provide an inspection report or submitting the Minnesota Disclosure Alternatives form.

Review your options to sell ‘as is’ in Minnesota

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 assist in 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.

“Depending on their situation, whether they’re facing foreclosure, price becomes way more important to what we have to do for the short sale with the bank. But if it is a turnkey house where they’re just ready to go to the next chapter, they’re tired, etc., pricing may become more of a factor because they need a certain amount to set them up for retirement,” Brickle says.

“I first and foremost try to gauge where we need to be at a price and where things are selling at that price point,” he adds.

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 needing significant repairs. These companies can help sellers cash out quickly, and many will cover a seller’s closing costs.

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 a majority of Americans say they would prefer to buy a move-in ready home, an as-is sale likely has a reduced buyer pool from the start.

Consider a pre-listing inspection

A pre-listing home inspection is the same as a standard one, except the seller pays for it before listing their home. Getting the inspection results upfront can illuminate any issues impacting the home’s value and inform an accurate pricing strategy. If a buyer requests further deductions to the price based on their inspection, you may be able to point to how the estimated cost of certain repairs was already baked into the list price.

Price to reflect ‘as is’ condition

The median sale price for homes in Minnesota hit $348,000 in October 2024, a 5.3% increase over the year prior.

Brickle says that when it comes to understanding the price on the final sale, it’s best to keep expectations in check,

“When it comes to as-is, I always say price isn’t necessarily a firm thing; it gets fluid, and I always try to say, let’s start below what we think market prices are, so we can try to drive that price slightly higher.”

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 give you a preliminary home value estimate in under two minutes.

Do ever-so-light preparations

Even for as-is home listings in Minnesota, Brickle typically recommends sellers complete the following:

• Thoroughly clean the house
• Touch up the lawn
• Touch up the exterior and interior paint
• Focus on curb appeal

Curb appeal is no joke. A HomeLight Top Agent Insights report found that home buyers will pay 7% more on average for homes with great curb appeal.

Consider going beyond light retouches — hiring a landscaper to spruce up the yard, repainting or replacing the front doors, replacing the windows —- these can go a long way toward giving you a strong first impression.

Photograph to show potential

Your home listing warrants professional photography no matter what condition it is in. 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 help earn homeowners up to a 47% higher asking price per square foot compared to 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. Mention in your as-is listing if your home is close to any of the following:

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 Minnesota include priced to sell, fixer-upper, handyman special, or a “call for investors.”

To balance the focus on as-is condition, work with your agent to craft a property description highlighting the home’s best features.

“Anyone buying off the MLS or buying their first home will look at curb appeal because that’s the first thing you see when you pull up. What am I seeing when I pull in, and then what am I smelling when I walk in? Those are the things that can increase that purchase price,” says Brickle.

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 your best defenses is an agent who takes a hard stance to prevent a deal from going south for the seller.

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 work with a financed buyer, be aware that different mortgage types (such as conventional 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 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 looking at the FHA minimum property standards. If your house complies with FHA, 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, 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 and the time it takes to close on the buyer’s loan, creating a faster and clearer path to settlement.

Pros of listing a home ‘as is’: 

• Save time and money on prep work
• Possibility of reducing negotiations from the inspection
• Solution for out-of-state owners and inherited homes

Cons of listing a home ‘as is’:

• Limited buyer pool
• Expect lower offers
• Negotiations and repairs aren’t always off the table

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 showings or open houses. They’re concerned about finding a buyer willing to purchase their home as-is in its current state.

2. Contact: A seller contacts a company that buys homes in their area and provides basic information about their home.

3. Preliminary offer: At this stage, some house-buying companies will provide a preliminary offer 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; 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 offer you a full cash offer to buy your home in as little as a week.

Skip repairs

There is 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 the 30-60 days or longer it typically takes to close with a financed buyer.

Are you 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 Minnesota

Below we’ve compiled a list of leading companies that purchase homes as-is for cash in Minnesota 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 and house-buying groups typically pay around 70% of what they estimate to be the home’s after-repair value.
• Sellers will have little room to negotiate. Most cash buyer offers will 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?

No simple equation calculates 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 cost, 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.

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 help run through some possible selling scenarios and estimate your take-home pay.

Ready to sell your house in Minnesota?

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

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: (Nicole Geri / Unsplash)