How Much Do You Lose Selling a House As Is?

When it comes to how much you lose selling a house as is, there's not a clear-cut answer.

If your home is in decent shape and you live in a desirable area, you might attract multiple buyers willing to pay full asking price (or more) for your home. But if your home requires extensive repairs and you need to sell it ASAP, you might only get half its potential worth.

For many homeowners, listing a home in as-is condition is the more convenient choice, even if it results in a lower profit. You can save time and money upfront by avoiding repairs and appealing to buyers who can pay cash.

However, if market conditions favor buyers or you're competing with homes that are fresh and up-to-date, an as-is sale can work against you. To gain some clarity on the financial aspects of selling as is, we asked top listing agents and real estate investors from across the country to weigh in.

Costs of selling a house as is

When considering the costs of selling as is, a lot hinges on your home's location, the specific repairs and updates it needs, the state of the housing market, and the buyers looking to purchase in your neighborhood. Your personal financial situation and the amount of equity you have in your home will also come into play.

"Fixing up a house does not necessarily have a dollar-for-dollar return on investment, especially for items like roof, plumbing, etc.," cautions Sammy Lyon, associate broker at Dow Capital in Los Angeles. "In most cases, my advice is to disclose the known issues, let the new buyer do their own due diligence, and be prepared to give a credit for any major repairs."

"Sometimes, less is more when it comes to pre-sale home improvements," agrees Jave Blackburn of WeBuyAnyHouseAsIs. However, the investor cautions that market conditions will also determine whether you make a profit or loss when selling as is.

"In a seller's market, as-is sales can be more lucrative due to high demand and low supply," says Blackburn. "However, in a buyer's market, making key repairs can significantly increase the home's appeal and value."

When it might make financial sense to sell as is

• If your house needs major repairs and you need to sell ASAP, selling to an investor might be your only option — but they may only pay you 50–70% of its potential worth.
• If demand for homes in your area is particularly high, buyers may be willing to pay a premium regardless of its condition. For example, a study of recent millennial home buyers found that a majority would tolerate mold, leaky roofs, and even asbestos to get into a house.[1]
• If the repairs aren't going to add a lot of appeal for buyers, listing at a lower price and offering the buyers a repair credit may be a better financial decision than putting money in yourself.
• If you have considerable equity in your home, you can still make a profit even when selling as is. Putting money back into the house for enhancements may actually hurt your bottom line — especially if the repairs don't add value or align with buyers' tastes.

When it might make financial sense to make repairs before listing

• If you live in a neighborhood where most of the homes are up-to-date, it may be worth putting in the money upfront to bring it in line with the competition and appeal to a broader pool of buyers.
• If your home needs only minor updates to make it move-in ready — and you can afford to make the improvements — your efforts may offer you a worthwhile return on investment.
• If there's less demand for homes in your area. “If there is low inventory and high demand in your area, you’re going to be able to sell your home as is," says Elisha Lopez, a licensed broker with Ocala Realty World in Central Florida. "If there’s an excess of inventory, the seller needs to make any repairs needed to entice the competition and encourage buyers to put an offer in on their home.”
• If your home is unlivable in its current state, consider making the repairs or be prepared to accept an offer from an investor. "Unless you're in a hot second-home market, few people will have the means to live elsewhere if major improvements are going to displace them," says Sharlys Leszczuk, a real estate broker with Windermere West LLC.

If you do choose to make improvements before listing, "focus on necessary repairs and updates with the best return on investment," advises Joy Aumann of Luxury SoCal Realty. "Don’t over-improve for your neighborhood."

In particular, says Aumann, "I would not advise spending money on cosmetic fixes like granite counters or bathroom tile before listing. Stick to general decluttering, neutral paint colors, and essential repairs. Updates rarely match every buyer’s taste, anyway."

Blackburn recommends consulting with a real estate agent to understand your local market's demands and what repairs (if any) make sense for you.

Factors that affect your sale price

Your home's condition

As a general rule, buyers will factor in the repairs they'd have to make themselves when calculating their offers, so the better shape your house is in, the higher the offer.

If your home needs major work to make it livable, your buyer pool will likely be limited to cash buyers, such as investors. These bargain hunters typically offer 70% or less of your home's potential worth.

When considering whether to sell as is, here's a good question to ask yourself, advises realtor Sharlys Leszczuk: "Would the improvements require the buyer to make alternative living arrangements once the transaction closes, or are they improvements that they could make while living in the home?"

Not only can the prospect of having to live elsewhere deter buyers from making an offer, says Leszczuk, it can also affect their ability to get a mortgage to purchase the house — since lenders might consider the purchase too risky.

How your home compares to other properties in the area

A desirable location may offset some of your losses — especially if you're in an area where a lot of revitalization is happening, leveling up a buyer's chances of seeing the home value appreciate.

"It’s important to evaluate the competition and see what has sold in your area to get a feel for what the buyers are looking for," advises Suzanne Seini, CEO and Owner of Innovate Realty in Irvine, CA.

“If investors and buyers are looking for a home in a certain neighborhood, they might be willing to pay top dollar no matter what the condition of the house is,“ says Seini. "But if you see homes selling in your neighborhood for a high premium that look new and updated, it may be a good idea to upgrade your house to the same level."

How strong the local housing market is

"In a seller's market with low inventory like we have now, you may be able to sell as is and still get a good offer," says Joy Aumann, who sells luxury real estate in Southern California.

As an example, Aumann recalls a recent client who was able to sell their home as is, even while needing a new roof and plumbing repairs. "The home sold for only $30,000 under list price…they were thrilled," recalls Aumann.

However, Aumann notes that less competitive markets may yield a different outcome. "In a balanced or buyer’s market, it’s usually best to make repairs if you can afford it," the realtor says. "Freshening up the home with paint, new floors, and fixtures can yield a much higher sale price that covers your costs."

Who buys your house

Traditional buyers

The average buyer typically isn’t looking for a home that needs repairs. However, one in three home buyers would consider purchasing a fixer-upper if they got a great deal.[2]

If you're in a desirable area, you may be in an especially good position to attract a traditional buyer looking for a bargain.

For example, realtor Cynthia Cummins recalls helping a longtime homeowner sell her residence in order to downsize and move into assisted living:

"There was a lot of deferred maintenance in the home, but it was a legacy property located in one of the most prime neighborhoods in San Francisco. The target audience was likely to be a monied end user who would take on a significant project and end up with an up-to-the-minute dream house."

After putting approximately $75,000 into repairs, staging, and minor cosmetic improvements, the house ended up selling for $500,000 more than the "as is" price other realtors had quoted.

"Luckily the seller had the funds to do that work and it was an excellent return on investment!" says Cummins.

Investors

Generally, homes with serious issues are more likely to attract private investors and 'we buy houses' companies. These buyers offer a quick sale, but they often pay 70% or less of the home’s after-repair value (ARV. Investors will also subtract their estimated repair costs from the offer.

Some investors may be willing to offer as much as 85% of your home market value if the location and profit potential are right. That's why it's important to compare multiple offers before selling your home to a cash buyer.

iBuyers

iBuyers may pay even closer to fair market value for your home. However, iBuyers like Opendoor are currently only available in about 50 major metros. They also have stricter purchase criteria than other kinds of investors. iBuyers generally prefer homes in relatively good condition that can resell quickly without needing to invest a lot of money into repairs.

How to minimize the amount of money you lose

Sell on the open market

When selling as is, one of the best ways to minimize losses is by listing on the open market with a real estate agent. This method generally yields a far higher sale price than selling to a cash buyer. That's because an agent exposes your property to a wide pool of potential buyers — some of whom may bid above market value if demand is high.

According to Alex Locklear of NC Cash Homebuyers, “Most investors won’t pay more than 70% of a home’s after-repair value,” meaning sellers often earn much less through cash offers. In contrast, those who sell as is with a listing agent may sell their homes for 80–90% of market value.

However, selling on the open market may take more time and require making or disclosing needed repairs. A skilled agent can guide you through pricing and preparation to maximize your home’s appeal.

Brett Johnson of Cash For House Pro says, “I strongly advise sellers to take a comprehensive look at all their available options, whether it’s teaming up with real estate professionals or exploring the open market, especially if their primary aim is to maximize their profit.”

Sell with a low-commission realtor

The average listing agent commission is around 3% of the home's sale price. That means on a $400,000 sale, you'd pay your agent $12,000 (usually from the sale proceeds). While this is the standard fee, there are ways to reduce this cost and keep more of your profit.

One way to save on realtor fees is to find an agent through a low-commission company like Clever Real Estate.

Clever matches sellers with top-rated agents who charge a lower rate of just 1.5%. This can increase your final take-home amount by thousands of dollars that would have otherwise gone toward agent fees. On a $400,000 home sale, you'd pay only a $6,000 listing fee.

Make minor home improvements

Small home improvements can significantly boost your home’s appeal and may increase the sale price.

Basic yard work — mowing, trimming, and clearing debris — can raise curb appeal and often costs as little as $200.

Painting is another cost-effective strategy. A Clever study found that 32% of buyers see painting as one of the most important improvements.[3] Paint colors like grays or whites appeal to buyers, and painting costs of $400–2,500 are often fully recouped.

Deep cleaning and decluttering also help attract more buyers to your home, potentially increasing the sale price. “Unless your home is a tear-down,” says broker Sharlys Leszczuk, “it makes sense to refresh paint and remove personal touches.”

Be transparent about your home's condition and your intent to sell as is

Being open about selling as is can help you find the right buyer. Some buyers may hesitate, but those willing to tackle repairs can still offer a fair amount. Transparency helps foster trust, which can lead to smoother transactions and potentially faster offers.

Include “as is” language in your listing to let buyers know that repairs may be needed and you won’t make further concessions. Specify issues like a damaged roof or outdated systems to attract serious buyers who understand the property’s current state and to avoid surprises or legal complications later on.

Adhering to state-specific disclosure laws is also key. Many states require that you disclose known problems such as foundation issues, pest infestations, water damage, or lead paint. Failing to do so could lead to legal disputes or cause buyers to withdraw. Familiarize yourself with your state’s regulations to ensure compliance and reduce last-minute negotiations.

Get multiple cash offers

If you choose to sell to a cash buyer, compare multiple offers to ensure you get a fair price.

Cash buyers typically want to fix up the house and sell it for more than they bought it. To get a decent profit margin, investors usually won't offer more than 70% of your home's after-repair value, minus the cost of repairs.

However, we've interviewed some cash buyers who pay up to 85%. That's why it's important to get offers from multiple investors. Some may be willing to pay more for your home than others.

You can request offers from multiple cash buyers on your own, or you can use a service like Clever Offers that does it for you.

Clever Offers has a network of vetted investors and can get you up to 10 offers. Then one of its experts will walk you through your options so you can make an informed decision. The service is free, and there's no pressure to accept an offer. Simply answer a few questions about your property, then sit back and let Clever get you cash offers.

Is selling your house as is worth it?

"Selling a home as is makes the most sense when the cost of repairs would exceed the added value they would bring or when the home needs such extensive work that buyers would be unlikely to see past it," explains Ryan Nelson of Rental Real Estate.

However, you should be prepared to sell your home for a lower price than if you fixed it up before listing. With an as-is sale, says Nelson, "you'll typically attract cash investors or house flippers as buyers rather than traditional home buyers. So you stand to lose thousands compared to fixing issues first."

If you're curious about what your home could sell for as is vs. with improvements, Clever Offers may be a good place to start. You can compare fair cash offers from a variety of local and national investors to the sale price you'd get with an agent.

That way, you can get a fair understanding of your home's before and after repair value, talk to a realtor about estimated repair costs, and decide whether the cost of making improvements outweighs the potential loss of selling as is.

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