Do you need to sell your home but don't have the time, resources, or inclination to make extensive repairs and upgrades? You might want to consider selling your home as-is. There are many reasons why homeowners choose this route — perhaps your home needs costly repairs, you’re selling an inherited home, or you simply don't have the time to rehabilitate the property. Whatever your reason, an as-is home sale could be the solution you're looking for.

According to a recent survey by Today's Homeowner, 82% of U.S. homeowners need at least one repair in their home, and nearly 60% are putting off these repairs because they can't afford them. In addition, 40% of homeowners expect to need major replacements, such as windows, roofing, or plumbing, within the next five years. When it comes time to sell, not everyone has the funds (or the desire to spend their money) on these costly house projects.

We've spoken to the experts and gathered essential information to help you make an informed decision. In this article, we'll dive into the details of as-is home sales and explore the pros and cons. From understanding the process to setting realistic expectations, we'll provide you with the knowledge you need to determine if selling your home as-is is the right choice for you.

What is an as-is home sale?

An as-is home sale refers to selling a property in its current condition without making any repairs, upgrades, or improvements before the sale. When you sell your property as is, you are essentially telling potential buyers that what they see is what they get. This means that any issues or defects in the home, whether minor or significant, will be the buyer's responsibility to address after the sale is complete.

For example, if the property needs a new roof, the seller will not be obligated to replace it before the sale. The same applies to any other repairs, such as plumbing issues, electrical problems, or structural concerns. In most cases, homes sold as-is are priced lower than move-in-ready properties to account for the cost of necessary repairs and upgrades that the buyer will need to undertake.

By choosing an as-is sale, you can avoid the time, effort, and expense of making repairs, while the buyer has the opportunity to purchase the property at a lower price and make improvements according to their own preferences and timeline. However, it's essential for both parties to understand the implications of an as-is sale and to conduct thorough inspections to identify any potential issues before finalizing the transaction.

Should you sell your house as-is?

Selling your home as-is can be a smart choice in certain situations. According to Andres Diaz, a Realtor® in Tampa, Florida with over 9 years of experience, "Some sellers just do not have the guidance or the time to take care of certain repairs that are being requested." There are several reasons why you might choose to sell your home as-is, and here are the top three:

1. You want a quick and convenient sale

Santino Muscardin, an experienced Realtor in the Bay Area of California, shares that in his experience, "the number one reason people sell their homes as-is is they inherited it, and just want to get rid of it." If you've recently inherited a property or need to sell due to a significant life change, such as a divorce, an as-is home sale can provide a swift and hassle-free solution.

This is especially true for out-of-state sellers, as the logistics of a home sale can be extremely complicated and difficult when you're not physically present. Finding contractors to complete repairs from a distance is no easy task and only adds to the stress of selling your home.

In summary, selling your home as-is can be a viable option if you're facing costly repairs, have limited time to prepare your home for sale, or simply want a quick and convenient transaction. 

2. Your home needs costly repairs

Major home repairs can be extremely expensive. In fact, according to a Today's Homeowner study, 59% of homeowners reported that they could not afford necessary repairs to their homes in 2023. Whether your home needs a new roof, has damaged siding, or requires plumbing updates, you might not have the financial resources to make these repairs before selling your home. In such cases, selling as-is can be a practical solution.

3. You lack the time to make repairs

If you've accepted a job offer out of state and need to move quickly, you might not have the time to go room by room, remodeling every inch of your home before listing it for sale. Preparing a home for sale can be time-consuming, and if you're on a tight deadline, skipping the big-ticket repairs can save you valuable time and reduce stress.

Are you losing money by selling your home as is?

A move-in-ready home will generally receive higher offers than a home that needs significant repairs. Potential buyers might want to negotiate a lower sale price to account for the money they'll need to spend on repairs or upgrades after closing.

According to Muscardin, buyers in his market are willing to pay 20% to 30% more for move-in-ready homes compared to homes that are being sold as-is and need repairs. However, the condition of the home is not the only factor that determines your final sale price.

Other factors, such as the home's location, local market competition, and current housing trends, can also have a significant impact on your asking price. This is where the help of an expert real estate agent comes in. Your agent will use comparable listings, the specifications of your home, and their own market research to help you determine the fair market value of your property.

In some cases, your agent might even recommend making a few small repairs instead of selling as-is if they believe it will have a substantial impact on your net proceeds. Muscardin, for example, likes to estimate the potential value of his clients' homes before and after repairs to help them make the best decision.

It's important to note that in a strong seller's market, you can still expect to sell your home at a premium, even if its condition leaves much to be desired. Homes in desirable neighborhoods might also sell more quickly and receive better offers than homes in other areas, regardless of their condition. In fact, according to a 2023 study by the National Association of Realtors, 60% of buyers reported that the quality of the neighborhood was the most important factor in their home search.

Ultimately, while selling your home as-is might result in a slightly lower sale price compared to a move-in-ready home, it's not the only factor that determines your final proceeds. By working with an experienced real estate agent and considering your local market conditions, you can make an informed decision about whether an as-is sale is the right choice for you.

Pros and cons of selling as-is

Selling your home as-is might sound like a walk in the park, but there are some serious downsides to consider. Let's take a look at the pros and cons of selling your home as-is.

Pros

Lower upfront costs

If you're short on the cash needed to spruce up your home before it goes on the market, selling the home as-is might be your best bet. According to Diaz, sellers spend an average of 1% to 2% of the list price on improvements to their home before listing it for sale. By opting to skip these preparations, you won't need to drain your savings to list your home.

Faster listing process

Instead of worrying about how every inch of your home appears to buyers, selling as-is gives you the freedom to get your home on the market as soon as possible. While there are some steps we recommend taking (more on that later), skipping the repairs saves you a significant amount of time on the front end.

Straightforward negotiations

Many buyers will try to negotiate home repairs after their home inspection. In an as-is home sale, the buyer is aware that you don’t intend to make any repairs, which can result in a faster and smoother closing. However, keep in mind that your buyer can still ask you to lower your price or choose to walk away from the sale if you agreed to a home inspection contingency and the inspection revealed issues they are uncomfortable with.

Cons

Limited buyer pool

Depending on the extent of the necessary repairs on your home, you might be limiting your potential buyer pool. While some buyers might be willing to put in the work post-closing for a good bargain, not all buyers have the extra cash to make repairs after purchasing. There is a good chance that investors might be the only buyers in your market who are interested in purchasing a distressed home.

Financing challenges for potential buyers

For buyers seeking conventional financing, the appraisal is a crucial part of the homebuying process. If the appraisal ordered by the mortgage company reports a home value lower than the listing price, the buyer would either need to come up with the extra funds or move on from the purchase. Most lenders also have specific safety requirements for the homes they will lend on, and if the home has significant damage or safety issues, it might not qualify for conventional mortgage financing.

Reduced profit potential

You will have to consider the cost of potential repairs when pricing your home for sale, and you might have to take some significant cuts depending on the condition of the home. This means that selling as-is could result in a lower overall profit compared to investing in repairs and selling at a higher price point.

Our tips for selling your home as-is

If you've gotten this far and know that an as-is home sale is your best option, here are some tips for navigating your sale.

1. Be transparent about your home's condition and needed repairs

Misrepresenting the condition of your home in your listing can backfire. Make it as clear as possible in the photos and description that you are selling your home as-is. Disclose anything you feel the buyer should know immediately and declare that you will not be making any repairs as the seller.

Consider getting a pre-listing home inspection, as there is a chance that your home has some quirks or damage that you weren't aware of. Knowing exactly what is wrong with the home will help you set a fair price, taking into account the costs of repairing any damages listed in the report.

Don't forget about looking into your state’s seller's disclosures requirements. As the seller of the home, you are typically required to disclose specific information about the home to the potential buyer. "Lay it all out on the table, because you don't want to get sued later. If you try to hide something, they are going to find it, whether it's immediately or in 5 years… I recommend always disclose, disclose, disclose," shares Muscardin.

For any potential buyer with conventional mortgage financing, the home will need to pass inspections to meet lender guidelines. "If the home can't pass a 4-point inspection, it is going to be very difficult for buyers to get homeowners insurance on it, therefore, they are only going to be able to market to cash buyers," shares Diaz. The 4 points he references are the roof, plumbing, electrical, and HVAC systems. Sharing this information upfront will generally help to prevent problems at the closing table.

2. Declutter and deep clean

Making costly repairs is not the only way to present your home in its best light. A deep clean and declutter can make all the difference. Decluttering your home helps buyers envision themselves living in the space, and a deep clean helps display your home's best features.

If the task seems overwhelming, start small and go through your home one room at a time. Enlist the help of family and friends to move the big stuff, and consider renting a storage unit for large furniture pieces you might not be ready to let go of.

Other small updates might go a long way when it comes to first impressions from buyers. Both Diaz and Muscardin recommend painting after a deep clean to freshen up the home.

3. Set a realistic price based on the home's condition

You will want to consider the condition of the home when setting the sale price. It is only fair that a buyer might not want to pay full price for a home that needs significant repairs.

An expert real estate agent can help you estimate what a buyer in your market would be willing to pay for your home, considering any necessary repairs or upgrades. They will also guide you through negotiations, so you know when to hold firm and when to bend a little.

"The first thing we do is we run comparables on houses that are in similar condition; we look at all houses that have sold in the last 3 to 6 months," shares Muscardin. This helps you as the seller understand exactly how much you might be able to get for your home, using similar sales as your benchmark.

4. Work with an experienced real estate agent

Skipping the repairs on your home doesn't mean you should skip hiring an expert to guide you through your home sale. An experienced agent can help you throughout the entire process, from estimating your home's value to negotiating the best price with potential buyers. Savvy agents will also know all of the best tips for presenting your home in all its glory, whether it be eye-catching staging or expert photography to draw interest from buyers.

How Redy can help you sell as-is

On Redy’s easy-to-use online platform, you will create your home profile and sit back and relax as agents in your area send proposals outlining their services, fees, experience, and qualifications. From there, you can select an agent that you feel would best guide you through whether to sell your house as-is (and see it through). Ask specific questions regarding their marketing plan, how they would approach negotiations, and their experience with as-is home sales to be sure you find the perfect fit. 

You will stay in the driver’s seat with your agent selection, and Redy will bring qualified agents straight to you. After you interview a potential agent and complete a walk-through, you can decide to work with that agent, or select a different one. 

Is selling your home as-is the right choice for you?

If you don't have the time, funds, or energy to make repairs before selling your home, an as-is home sale can be a great solution. However, this kind of sale might not work for every seller. There are some drawbacks to skipping repairs before selling, and it's in your best interest to carefully consider your options.

Working with an expert real estate agent can help you weigh the pros and cons of an as-is sale and determine the best course of action for your unique situation. An experienced agent will provide valuable insights into your local market, help you set a realistic price for your home, and guide you through the entire selling process to ensure you get the most out of your sale.

Remember, selling your home as-is doesn't mean you have to compromise on the quality of your representation or the level of service you receive. By partnering with a top-notch real estate agent, you can navigate the challenges of an as-is sale with confidence and achieve the best possible outcome.

If you're ready to take the next step in your home selling journey, create your profile on Redy today to get connected with top agents in your area. With the right professional by your side, you can sell your home as-is and move forward with peace of mind.

Madeline Sheen is a passionate writer and editor with experience in real estate, personal finance, and mortgage content. She’s worked in the mortgage industry since 2019 and holds a BA in Communications from California State University, Monterey Bay.