What Are the Benefits of Selling My House As Is?

Tuesday, April 16th, 2024

Getting a home ready to go on the market takes some time, effort, and money. Selling a house “as is” can sound tempting. And in certain circumstances, the speed and ease of an as-is sale is a great option. But the downside to not lifting a finger or spending a dime is that you’ll likely have to settle for a rock-bottom sales price.

Before you decide to skip doing any work to your home, consider what selling the house as-is will mean in the long run.

Selling a house as-is often allows sellers to make a quick sale without making a lot of repairs and upgrades. People in the following circumstances may choose this method:

A job relocation or other circumstance makes it necessary to move as soon as possible.
The homeowner, perhaps facing foreclosure, can’t afford to make any changes.
If the house is severely neglected and run down and needs extensive repairs and upgrades.
No desire to do any work or spend any money preparing the house for the market.
When no other purchase is contingent on the sale and the proceeds are pure profit. For example, when the home is not the owner’s primary residence.

All of these are valid reasons for wanting to “unload” a house with an as-is sale. Whether or not it makes sense means answering the following questions:

How important is it to sell quickly?
Is saving money and aggravation now worth what might be left on the table at closing?

Interest in an as-is home depends on the characteristics of the house that’s for sale. For example, a house that is old but structurally sound will appeal to a much different buyer than one that needs a total gut job.

Needs Updating But Has Good Bones. There may be nothing really wrong with a house, other than being outdated. Someone may inherit a house like this but have a house of their own. Or it may be sold as-is by an elderly homeowner moving to a retirement community or assisted living.

These homes can be diamonds in the rough, especially if they have antique or mid-century modern features that a new owner wants to refurbish to their former glory.

Rundown But Livable. Not all homebuyers can afford a house that has been fixed up with all of the latest features. And some want a fixer-upper that they can design to their liking.

As long as a house can be moved into without major renovations, there is likely a buyer who can look past its not-so-perfect condition.

In Bad Shape But Worth Saving. Dilapidated, neglected properties often end up being sold as-is. They may be able to be rehabbed and renovated. Or perhaps the house itself isn’t salvageable, but it is on a prime piece of real estate in a great location.

Independent house flippers are often interested in these homes since they can get them for a bargain price. As long as they have the capital to invest, they can fix them up and sell them for a profit.

Any home, regardless of its condition, can be sold to what is known as an “instant buyer” or “iBuyer”. These are companies that advertise heavily all across the country. They buy homes for very low prices, often for cash, then fix and resell them. While fast cash might sound like a good deal, it is worth noting that these companies charge a fee for their convenience. This can be between 5% and 14%, possibly more than a seller might spend on a real estate agent’s commission.

Home sellers must decide how much a quick and easy sale is worth to them—because it will cost them in the final selling price of the house. Buyers will not want to pay top dollar when they know they will need to be responsible for a lot of repairs.

But homeowners can do some minor work and get a bit more from the sale. They can still forego major remodeling and price the house realistically, knowing they will not make a huge profit.

Some sellers take as-is literally and do not even want to clean, declutter, and remove all of their belongings. But emptying the house and giving it a thorough cleaning will instantly make it more appealing.

A fresh coat of paint and sprucing up the exterior can be time and money well spent. But those selling as-is can skip replacing carpets, new appliances, and major fixes like a new roof. Just remember that anything left unchanged could result in a lower offer.

While not necessary when selling as-is, homeowners may consider paying to have an inspection done before putting the house on the market. This way they can present the home for sale as-is knowing exactly what needs to be fixed—and therefore having a better idea of its value to potential buyers. If buyers know there are no issues with the foundation, mold, or electrical and plumbing after an inspection, they may be less likely to offer a lowball price for the property.

Selling a house as is is not the same as For Sale By Owner. Homeowners can, and should consider hiring a real estate agent to help with the sale. They can lend their expertise in the following ways:

A realtor will give their honest opinion about whether an as-is sale makes sense for the property.
They may offer a list of practical things the homeowner can do to get the most for the house whether they decide to sell as-is or not.
Using comparable properties in the local market, an agent will help price the house competitively.
They will know how to use the house’s positive aspects to their best advantage, for example advertising its great location, desirable school district, vintage charm, huge yard, etc.
Real estate agents will know how to market the home to appeal to serious buyers.

If you are ready to put your house on the market but without the work and hassle of making changes, selling it as is might be the answer.

Before you make any decisions, contact Berkshire Hathaway HomeServices Select Properties. Our agents can help you decide the best course of action for your sale and help you find a buyer. Contact us today.