Selling a house that needs work can be a challenge, especially if you’re surrounded by move-in-ready homes. You may feel that investing in costly repairs is the only way to compete, much less get a fair price.
But it is possible to sell your home as-is and still get a decent offer — and you actually have several options to do so. We talked with top real estate agents and home investors to get their advice for determining your best move, whether that’s selling to a cash buyer, listing your house on the open market, or doing a little bit of both.
At a glance: 5 great options for selling a house that needs work
Can you still sell your house if it needs repairs?
At the right price, there's a buyer for every home — even one that needs major repairs. For many sellers, the question becomes whether to fix up their house or sell it as is. The right answer will depend on the situation.
Selling the house in its current condition can make more sense if you don’t have the time or money for renovations — or if the cost of the work needed exceeds the added value added to the house. If the home needs major repairs, your most likely option may be selling to a house flipper for cash.
While selling as is will fetch you a lower sale price, you'll also save money by avoiding the costs of a full remodel that an investor can probably do a lot more efficiently.
If you need to net a certain amount from the home sale, some strategic repairs may be required to open it up to a wider pool of buyers—especially if the remaining work is mostly cosmetic.
Of course, some repairs add more value than others, so it's important to weigh the costs against the potential gains.
When is a house not worth fixing?
Not all homes are worth fixing up, especially if the investment won't result in a commensurate boost in home value.
“I’ve seen sellers spend tens of thousands remodeling kitchens or bathrooms only to recover a fraction of that cost,” cautions Juan Diaz, CEO of Twin Home Buyer in California. “On the flip side, addressing safety or financing blockers — like a failing roof or electrical hazards — can sometimes pay off if it opens the door to more buyers.”
Generally, minor cosmetic repairs, such as fresh paint, new carpet, or tidied-up landscaping can also help you fetch a higher sale price that offsets the costs. For instance, according to a National Association of Realtors (NAR) report,[1] refinishing hardwood floors returns about 147% of the cost investment.
“These updates can help buyers emotionally connect to the home, and that can make a huge difference” says Ledeana Strand, a broker at Homes by Strand in Washington.
“But don’t assume fixing everything is the answer,” adds Roxanne Hale, an associate broker with the Art House Team in Alabama. “Sometimes, the smartest move is doing less, not more — and having an experienced agent help you decide which is which.”
The following steps can help you determine whether your home is worth fixing.
1. Assess your situation
Strand starts by having sellers consider some key questions, including:
- How quickly do you need to sell?
- Do you have the cash, time, or desire to invest in updates?
- Is the home structurally sound, or are there bigger issues (i.e., roof, foundation, or electrical concerns)?
- Are you hoping to get top dollar, or would you prefer less hassle?
If your goal is simply a quick sale, then skipping repairs is likely your best option.
2. Examine the market
Before sinking money into repairs, it’s essential to understand the type of market you're in. For instance, if you live in an area with heavy investor activity, you probably won’t need to make any repairs to get a competitive sale price. That’s also true for towns or neighborhoods where inventory is low and buyers are eager to get in, even if it means taking on a fixer-upper.
Improvements may be more important if you live in an area with lots of available homes (and fewer buyers for them) or are competing with lots of new or move-in ready homes.
3. Run some numbers
Next, look at what comparable homes are selling for in your local market. Specifically, check the sale prices for both updated homes and those that need work. This can help you set a realistic sale price, though you’ll also want to consider how long your house may need to sit on the market to reach that price.
Omer Reiner, a licensed realtor and president of Florida Cash Home Buyers LLC, encourages sellers to list the repairs and upgrades needed to increase the sale price. Be sure to source the approximate cost to complete each one so you can see a reasonable current sale price versus the after-repair value (ARV).
“If a seller might spend $30,000 on improvements but only see a $20,000 increase in value, that’s usually a sign to slow down and rethink and decide if that is the best decision,” offers Strand.
4. Get a pre-listing inspection
You may want to hire a professional to conduct a pre-listing inspection to uncover any hidden issues with the home. This can be especially important if you’ve lived in your house for decades, as it could reveal problems you didn’t expect.
With a pre-inspection report to share with potential buyers, you could receive more non-contingent offers. Plus, buyers will know possible challenges with the home up front, so you can expect serious offers.
5. Consider dealbreakers for buyers
Easy fixes for you — outdated cabinets, lighting fixtures, or flooring — are also easy fixes for buyers. You wouldn’t necessarily want to spend time or money updating items that buyers are just as likely to change.
But big-ticket items are harder for buyers to overlook, Strand says. This includes roof or foundation problems, outdated electrical systems, or HVAC or plumbing issues. Pest infestations, mold, and radon will also scare potential buyers away.
If you’re able to repair these issues, it will help expand your potential buyer pool. Otherwise, selling to a 'we buy houses' outfit or iBuyer could be your best option.
How to price a house that needs work
One strategy for pricing a home that needs work is to consider how much an investor would pay. That is, estimate the property’s fair market value if it were move-in ready, and then subtract the cost of repairs and your desired profit from the price.
So, if your home could be worth $400,000 after $20,000 in repairs, your starting point would be around $380,000. Then, determine how much profit you need to clear from the sale.
“Pricing a home that needs repairs is all about honesty and strategy,” says Strand. “You can’t price it like a turnkey home and hope buyers look past the issues. Instead, we price it to reflect the condition and highlight the opportunity.”
Your goal should be to attract the right buyer, not to appeal to the masses. Be clear that the home is being sold as-is and use words like “handyman special” or “investors welcome” in your listing. Someone planning to live in the house and fix it up will often pay more than a cash investor or flipper, who typically offer about 70% of the property’s after-repair value (ARV), minus repairs costs.
You may be able to price your home higher if it’s in a desirable location with limited inventory. Houses in neighborhoods with sought-after amenities, such as good schools and restaurants, typically sell for more, regardless of condition. A comparative market analysis (CMA) — a report usually prepared by a realtor — can help you estimate your home’s value more accurately.
How to sell a house that needs work
If you’re selling a house that needs work as-is, you have a few options to consider. The right one for you will depend on your desired profit and your timeline.
Option 1: Sell your fixer upper for cash
Pros
- Cash buyers offer quick transactions, with many closing in about a week.
- You’ll usually get a non-contingent offer, meaning they’ll purchase the home as-is.
- You won’t have to pay fees associated with a traditional sale, like realtor commissions and closing costs.
Cons
- You won’t receive the full market value of your home.
- Some iBuyers have stricter criteria for the properties they’ll purchase.
- There’s typically little room to negotiate, especially if you’re selling to a large company.
If getting a sure and speedy sale is more important than getting a high sale price, then selling your house to a reputable cash buyer can be ideal. You might also sell your home for cash if major repairs are needed or if you’re having issues with the title or with tenants.
Itay Simchi, a real estate investor and founder of Proven House Buyers in Ohio, says inherited properties, vacant homes, and houses with deferred maintenance can also be good fits for a direct sale.
“Avoiding commissions, repairs, inspections, and financing delays can sometimes net the seller more money, even if the price looks lower on paper,” he explains.
Let’s break down the steps for selling to a cash buyer.
1. Determine how much your home is worth
Perform a CMA — or work with a realtor — to determine your home’s fair market value. Considering that cash buyers typically offer about 70% of the house’s after-repair value, this will give you an idea of the bid amounts you can expect.
2. Find a reputable cash buyer
It’s crucial to find an investor with a good reputation, as you’ll be more likely to get a higher price for your home. Search online for local cash buyers, or look into companies that operate nationally, like We Buy Houses or HomeVestors. You can also try a free service like Clever Offers, which connects you with prospective cash buyers in your area.
3. Evaluate buyers and their offers
See how each offer compares to your home’s value, but also look beyond price to consider the closing timeline, earnest money deposit, and contract terms. It’s also important to screen the buyer by:
- Asking for proof of funds (i.e., bank statements or a letter from a lender) and past closing statements to evaluate whether the buyer has a track record of successful deals
- Checking the investor’s online presence, including reviews from past customers
- Asking for a breakdown of how they arrived at their offer price to evaluate their transparency
- Getting the offers and contracts reviewed by a real estate attorney or other professional before signing
4. Sign the contract
When you’ve decided to accept an offer, sign the contract to make the deal official. You may have some room to negotiate if you’re working with an individual or local business. But an iBuyer or a large company will likely make a non-negotiable offer, so be sure to review the contract carefully.
5. Close on the sale
This is the final step. Cash investors typically handle the paperwork and cover all closing costs. You'll work with a title company to ensure you have a clear title to the home and can legally transfer ownership. Once all the paperwork has been signed, you’ll turn over the keys and receive a check.
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Option 2: Put your house on the market
Pros
- You’ll get the highest possible price for your home.
- Listing your house on the market broadens your pool of potential buyers.
- If you list with a realtor, you can leverage their marketing and negotiating expertise to target the right buyers.
- An agent will know what you’re required to disclose about your home’s condition.
Cons
- You’ll have to pay commission fees for your agent and possibly the buyer’s agent, up to about 6% of the home’s sale price.
- Some homes that need work may not qualify for financing, which could limit the number of potential buyers.
- Depending on the extent of the repairs needed, buyers may use your home’s condition to negotiate a lower sale price.
Selling your home on the market can be the best way to get the highest price. While you can list it for sale by owner (FSBO), working with a realtor typically nets you more.
A good realtor can also help determine whether repairs are necessary and identify the best home improvements for resale.
If you choose to list your home on the market, here are the main steps you’ll take:
1. Prepare your home
You’ll typically want to start preparing your home for sale before listing it, and this can take several months. This includes determining which repairs you’ll make (if any), as well as top-to-bottom cleaning and decluttering.
Now is also the time to get a pre-inspection report, especially if you’re not planning any home improvements. You’ll uncover any hidden issues and have a clear idea of what you need to disclose to potential buyers.
2. Choose an agent
Look for an agent with ample experience selling homes like yours. Some brokerages even offer home prep programs that pay for home improvements upfront and recover their costs from the proceeds at closing. This is a significant bonus for sellers who can’t afford to make repairs but want to sell for the highest price.
Also, because homes that need work tend to sell for less, you can save money by working with an agent who has a lower commission rate. The average commission rate for a listing agent is 2.82% of the sale price, or about $11,280 for a $400,000 home sale. However, some companies can match you with low-commission agents, who charge as little as 1.5%. That cuts the fee nearly in half to $6,000.
3. Decide whether you’ll make any upgrades
Review the pre-inspection report and consult with your agent to determine what repairs are critical. You’ll likely want to tackle the dealbreakers we discussed earlier, such as roof or foundation problems and issues with the home’s major systems — especially if they might complicate buyer financing.
“Cosmetic issues like old kitchens, dated bathrooms, worn flooring, or ugly wallpaper are usually things buyers can live with if the price reflects the condition,” says Hale.
4. Set a reasonable and realistic price
To determine a realistic sale price, your agent will look at comps for homes like yours that have been updated as well as those that need repairs. They may also estimate the costs of needed improvements and upgrades, and recommend a reduction or credit to appeal to buyers.
“Homes needing repairs must be priced accordingly,” says Diaz. “Overpricing a fixer usually leads to longer days on market and deeper price cuts later.”
5. List and market your home
Your agent can help you stage your home and arrange for professional photos for your listing. Be honest about the work your home needs and include terms like “fixer-upper” and “investor opportunity” to attract the right buyers. Also, highlight the home’s potential in the property description.
6. Review and negotiate offers
As you begin receiving offers, compare the price, timeline, and any contingencies to find the best deal. For instance, some buyers may ask for an extended inspection period or credits to help cover repair costs.
Your agent can help you determine the best offer. They’ll also negotiate on your behalf if you want to try for a better sale price.
7. Accept an offer and close
Once you’ve found the right offer, your agent will help you prepare the paperwork. In addition to the typical documents, such as the purchase contract, mortgage and tax records, and insurance statements, you’ll also want to bring the pre-inspection report and any repair cost estimates to closing.
When all the papers have been signed, you’ll hand over the keys and collect your check.
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Option 3: Take a hybrid approach
You don’t have to choose between getting offers from cash buyers and putting your house on the market. Sometimes, taking a hybrid approach can be your best option. After all, cash buyers look for opportunities on the MLS, so you’re likely to attract some anyway.
For a more strategic approach, you can start by getting no-obligation offers from cash investors. Then, list your home and test the market using your best cash offer as a baseline. Set a deadline with your real estate agent to beat your net best offer, including all fees and closing costs.
If you don’t find a traditional buyer offering a better deal, you can always fall back on your best cash offer.
An offers marketplace like Clever Offers can save you significant time finding reputable buyers and seeing what they'll offer for your house. You can also test the market with a no-obligation 7-day MLS listing — allowing you to see what a wider range of buyers might pay, without the commitment of a lengthy listing agreement. Answer five simple questions to start comparing offers.
FAQs about selling a house that needs work
Will I lose money if I sell my house as is?
Yes, you’re unlikely to get the full market value of your home if you sell it as is, though how much you’ll lose will vary. Cash buyers are more likely to purchase a home needing repairs, and they typically pay about 70% of the house’s after-repair value. You could get more from a traditional buyer, especially if your house is in a desirable neighborhood.
Should I list my house or sell it to a flipper?
Consider listing if repairs are minor or if the potential return is high. However, if you’re looking for a faster turnaround, selling to an investor directly can expedite the sales process while offering a lower but guaranteed return.
How can I determine my home's as-is value?
Consult with a real estate agent knowledgeable of the fixer–upper market in your area to run an analysis of what similar homes are selling for. They should be able to give you an indication of your home value both in its current condition and after making repairs.
Is it better to fix up my house or sell it as is?
If you can afford some modest repairs, fixing up your house may allow you to aim for a higher sales price. However, it's best to get estimates from contractors before undergoing major renovations. Selling as is is probably best when time and resources for repairs are limited or the market favors sellers.
