Selling a House ‘As Is’ in Missouri

Looking to sell a house “as is” in Missouri? Whether you’ve got a fixer-upper or recently inherited a relative’s home, sometimes the goal is to skip repairs, get a fair offer, and move on.

“Typically, the reasons are like an estate sale where they’ve inherited the property, and they don’t have the funds or the inclination to prepare the property for the market. Either that or it’s not a distressed property. But, the seller has an advantage in that particular market, ” according to Alicia Sierra, a top St. Louis, Missouri agent who sells homes 56% faster than the average agent in her area.

“It’s a seller’s market, and they strongly prefer an “as is” sale,” she adds.

However, selling a house “as is” usually means accepting a lower offer, and it doesn’t always prevent buyers from trying to negotiate savings. Let’s look at how to sell a house in Missouri, your options for getting an offer, and what to expect from the process.

Fast facts about selling a house ‘as is’ in Missouri

What is ‘as is’ condition in real estate?

“As is” is a type of home sale where it’s understood that no improvements will be made to the property. When selling a house “as is,” the seller chooses not to entertain buyer 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, is not guaranteed.

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

“In Missouri, we have two different contract forms. We have a residential sales contract and a special sales contract. The special sales contract is typically used for as-is purchases — not exclusively but almost exclusively, because, among other things, it does not have a provision whereby the seller has to provide a past occupancy certificate from the local Government entity,” Sierra adds.

“There’s either the city or the county where the property resides, which is required in some areas or counties in the St. Louis market,” she says.

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Homes sold “as is” often need work or might be cosmetically outdated.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.

You might be wondering, must homes be listed as-is in Missouri?

“Typically, this preference or requirement is communicated either in the marketing remarks or in the hidden agent remarks that are not published to the public on sites like below or home.com or realtor.com,” Sierra says.

“It’s a preference. It doesn’t mean that a buyer can’t make an offer with different terms. It just means that typically if the seller has communicated that on the listing, they will reject that offer or counter it with that stipulation that it’s as-is,” Sierra adds.

What problems do you have to disclose in Missouri?

Selling a house “as is” in Missouri doesn’t mean sweeping known problems about the house under the rug.

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

According to the document, a seller who knows an adverse material fact (e.g., a fact related to the Property, not reasonably ascertainable or known to a Buyer, which negatively affects its value), may have a duty to disclose such knowledge. Adverse material facts may include (but are not necessarily limited to) matters such as environmental hazards, physical condition, and material defects in a Property or title thereto.

The form will walk you through documenting what you know about the property’s history and problems.

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

• Heating, ventilation, and cooling (‘HVAC”).
• Electrical systems.
• Plumbing and appliances.
• Water source/ treatment.
• Sewage.
• Roof, gutters, downspouts.
• Exterior finish.
• Additions and alterations.
• Soil, structural, and drainage.
• Termites/ wood destroying insects or pests
• Hazardous substances or other environmental concerns.
• Insurance.
• Roads, streets, and alleys.
• Subdivision or homeowners association.
• Condominium, Co-op, or shared cost development.
• Lakes and ponds or waterfront property.

No matter what method you choose to sell your home, you must make these disclosures to the best of your ability.

However, according to NOLA.com, Missouri Rev. Stat. § 442.600 specifically allows home sellers to “remain silent on certain matters related to “psychological impacts” on the property. This includes “whether prior occupants of the home had HIV/AIDS or another disease that’s unlikely to be transmitted via later occupancy or whether the home was the site of a murder, felony, or suicide.”

Review your options to sell ‘as is’ in Missouri

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.

“I think that the biggest warning to any seller offering a home as-is is that they have to realize that if they know about a material defect in the property, they are still obligated to disclose it. They must disclose that it exists in a floodplain, [for example], even though you’re offering a home as is,” Sierra says.

“You can’t hide a known defect in the property. Just because you’re selling as is, you can’t go, ‘Well, we’re not providing disclosures.’ If it’s new knowledge, you still have to disclose it, and the same goes for the agent who cannot conceal information,” she adds.

Sierra points to a past seller who had to disclose an issue with the sewer.

“For example, I recently had a listing where the seller visited me to list the property. They disclosed that the sewer lateral camera can’t go past a certain point because the yard the access is buried. So, long story short, I know that the seller knows that I had to disclose that as part of the listing,” she says.

“We have to provide a copy of that information. I can’t say, ‘Well, it’s as is, it doesn’t matter.’
I can’t do that, I’ll be liable, and the seller likewise cannot do that,” Sierra 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 getting an offer from a limited buyer pool may be difficult.

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 80% 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 that the seller pays for it before listing their home. 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 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.

“For an as-is, the sale can be a win-win situation for the seller. I commonly have as-is sales,” Sierra says.

“I’ll give an inspection contingency, that’s it. The seller is simply, usually, motivated by the fact that they just don’t want the hassle. They want to sell it and be done with it. So, that is the advantage to the seller,” she adds.

“It’s usually a more timely sale. There are fewer steps. They don’t have to execute anymore. They don’t take any more steps or actions or expenses. They know their net when they sell to the buyer.”

Price to reflect ‘as is’ condition

The median sale price for homes in Missouri hit $251,000 in September 2023, a 3.3% increase over the year prior.

Sierra says that the discount for homes sold “as is” not “that exciting” for most properties, but it typically depends on where the market is.

“I just talked to a seller this morning, unsure if [they want to] sell-as-is or go ahead and do the work and get it to pass code. It’s a rental property. It’s new, So I said, well, here’s what we’ll do. We will go to the property. We will meet a contractor there and get an assessment,” she says.

“The expense of how much it would be to turn this over to rent again, I will present to you. Well, they already cleaned it out. So, if it hadn’t been cleaned out, I would have had three options: without a cleanout, as is cleaned out, or turn-key. So, I will look at comparable sales as is versus comparable sales turn-key, and then we will analyze it from that perspective,” she adds.

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.

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Do ever-so-light preparations

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

• Work with the right realtor: Find someone who knows the market and your neighborhood
• Don’t just hire a friend or relative: Find a licensed professional to assist

“Don’t just hire your relative or your friend because they have a license; make sure that you’re hiring somebody who has expertise in this space in your market,” she says.

Other common steps include improving the home’s curb appeal, decluttering, sprucing up the yard or front door, and making the home much more appealing upon first impression.

Photograph to show potential

Your home listing warrants professional photography no matter what condition the property 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:

• Downtown areas
• Major employers
• Parks and green spaces
• Sports venues and entertainment districts
• Waterfront views or access (ocean or a lake)
• Highly rated schools
• Access to outdoor activities
• Public transportation

Include ‘as is’ in the listing

Unless you explicitly mention that your house is being sold “as is,” buyers will have no idea your intentions with the listing. Other common descriptors mentioned in as-is listings in Missouri 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.

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 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 is 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.

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 any 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 some basic information about their home.
3. Preliminary offer: At this stage, some house-buying 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 full cash offer to buy your home in as little as a week.

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 the 30-60 days or longer it typically takes to close 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 Missouri

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