Selling a House ‘As Is’ in Tennessee

Steps to list ‘as is’ with the help of a Tennessee real estate agent

Find an agent willing to list the home ‘as is’

Your choice of real estate agent always matters, but 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 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.

“They’re gonna find out exactly what’s wrong with the property and be able to address those items without a surprise down the road,” says Eddie Crosslin.

Crosslin adds that if a seller does a pre-listing inspection and ends up performing any necessary repairs, it can be a great selling point.

Melinda Crosslin cautions that a pre-listing inspection can be a double-edged sword for sellers.

“if they’re selling as-is, they may not want to know everything. If they don’t disclose, it could potentially make them liable if they find [something wrong] out and then don’t disclose. So, we don’t usually suggest that they do [a pre-listing inspection],” she says

Price to reflect ‘as is’ condition

The median sale price for homes in Tennessee hit $371,900 in October 2023, a 4% increase over the year prior.

Eddie Crosslin suggests pricing the property at a price similar to other homes in the market will help it sell faster, rather than trying to get top dollar for the home.

“Don’t list too high. List it with comparable sales that have sold and closed, and you’ll get a higher offer. Even in our market today, we can still get multiple offers if it’s listed at the right price,” he says.

Melinda Crosslin notes that price will have an impact on how long the home takes to sell.

“It also will affect the days on market. We can look at comparables for as-is sales in the area and price it according to what other properties have sold for,” she says.

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 Tennessee, it’s recommended that sellers make basic improvements to the home.

Melinda Crosslin suggests ensuring the home’s major appliances are in working order, above all else.

“I would say, make sure that the major systems are working in order to be able to sell to end-user buyers, Federal Housing Administration and Department of Veteran’s Affairs loan buyers. Because they can definitely overlook cosmetic issues and those kinds of imperfections. But if the major systems are operable, they’re okay with it. It’ll attract more buyers,” she says.

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 Tennessee 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 of your intentions with the listing. Other common descriptors mentioned in as-is listings in Tennessee 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 that highlights the best features of the home,

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 end up working 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/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 Tennessee-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, 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,” 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.

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 location in Tennessee.
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

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 Tennessee

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

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 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.

“In our area in particular there’s a lot of people calling, ‘I want to buy your house. I’ll give you an offer’. It’s generally better for the seller to go ahead and list with a realtor in our area and pay the commission. They still are going to get more money and more than likely, multiple offers,” says Eddie Crosslin.

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

Ready to sell your house in Tennessee?

While every home sale is different, you should now be familiar with the general process of selling a house “as is” in Tennessee.

Whether you choose to list “as is” with a Tennessee 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 happily 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: (Ian MacDonald / Unsplash)