If you need to sell your home quickly, listing it “as is” might sound like the easiest solution. Without costly repairs or a prolonged negotiation process, you can get an offer without putting time and money into fixing it up.
While this approach can save you time, it comes at a significant cost to your sale price. Most buyers will be wary of a home needing repairs. Those that are interested will expect they can turn your eagerness to sell into an opportunity for a steal of a deal.
But selling your Austin home “as is” doesn't mean you need to settle for a lowball offer. To find out the best ways to fight negative buyers' perceptions and get the most from your sale, talk to a professional real estate agent.
An experienced realtor can advise on how to market your home and can give you a clear idea of how much you can expect in return.
Reach out to get connected with a top-rated agent with expertise selling in the Austin market.
If you're thinking about selling your house “as is,” here's what you need to know about how the process works, its benefits, and drawbacks.
What does selling a house “as is” mean?
Selling your home “as is” means that you are selling the property in its current state — with all its flaws. No repairs will be made before the sale.
Before the sale, the buyer and seller will acknowledge in the purchase agreement that they both understand the condition of the home being sold.
It's important to remember that selling “as is” doesn't let you off the hook from disclosing problems with the house's condition to the buyer. In Texas, you have to submit documents outlining any known defects at closing.
Typical Reasons for Selling a House “As Is” in Austin
People often decide to sell their house “as is” if they're facing a period of financial or personal hardship.
Maybe their employment situation has changed or they can no longer make their mortgage payments. Maybe they are going through a divorce. Sometimes a seller has inherited a distressed property and doesn't want to take on the project of fixing it up.
In all of these cases, the motivation to sell “as is” is to save time and money on major repairs and make a sale fast.
Potential Drawbacks of Selling a House “As Is” in Austin
While selling “as is” can seem like an easy way to wash your hands of a house if you need to sell fast, you will take a hit on your equity in the sale.
Traditional buyers can view an “as is” home negatively, since taking it means also taking on the work and cost of dealing with any defects. Your market of interested buyers may be limited mostly to cash buyers, home flippers, or those looking to get a deal on a fixer upper.
How much do you lose selling a house as is?
It's difficult to say exactly how much you'll lose selling “as is,” but you can expect it to be a significant amount.
For example, let's say your home is worth $372,200 (the median home value in Austin, as of August 2019). Cash buyers regularly offer 30% to 50% less than market value. This means by selling to one of them, you would be leaving $111,660 to $186,100 in value on the table.
Should you consider selling to an Austin cash buyer?
If your home is in poor condition and your top priority is to get a sale done as quickly as possible, a cash buyer can be a good solution. These investors take properties regardless of condition, and will usually put forth an offer in a matter of days.
The tradeoff for this convenience is settling for a price well below market value — up to 50% less.
Another way to sell your house quickly for cash n is a new online service called an iBuyer.
iBuyers are companies that aim to speed up the process of selling your home using technology. Interested sellers can get a preliminary offer in 24-48 hours, and after an onsite inspection, can close a sale in as little as 8 days.
iBuyers charge big fees though, as much as 14% of the sale price. They also have very strict criteria on the types of homes they buy. Most will only buy newer homes in good condition, and in certain locations.
Still it's important to explore all your options. By requesting a free, no-obligation cash offer from an iBuyer you can see if it's right for your situation.
Are there any required disclosures when selling a house “as is” in Austin?
In Texas, sellers are asked to complete a Seller's Disclosure Notice. This form asks the seller questions about the condition of the property. You are required to disclose known defects — meaning, issues that you are aware of at the time of the sale.
You'll have to disclose known defects with areas such as the roof, electrical and plumbing systems, windows, and other structural components, as well as instances of pest damage, radon gas, lead-based paint, and other issues. Sellers must also verify the home has sufficient working smoke detectors installed.
5 Steps for Selling a House “As Is” Quickly in Austin
1. Find a Great Austin Real Estate Agent
Selling a home “as is” is not easy. An experienced real estate agent can help guide you through complexities like disclosure laws, pricing your home, and marketing it to sell in your area.
2. Get a Pre-Listing Inspection
Getting a pre-listing home inspection will help prepare you for questions about your home's condition. It can give you an accurate idea of just what issues your property has, and can help you decide on a list price.
If the inspection turns up any minor flaws, you might decide it's worth fixing them to boost interest and possibly your sale price.
3. Consider Making Some Low-Cost, High-Impact Repairs
Even if you're hoping to avoid making expensive repairs on your home, you could benefit from making some low-cost improvements before it goes to market.
Cosmetic fixes like adding a fresh coat of paint, having the carpets cleaned, or mowing the lawn can go a long way to making a good first impression.
Austin is in a hot climate, so if you're able to put a little more money and time into fixing systems like air conditioning or putting in energy efficient windows, you'll add a significant amount to the home's value.
4. Set a Competitive — But Fair — Price
Setting a fair, realistic price will help sell your home quickly. Remember, there's a reason you're listing it “as is,” so be sure to factor in the cost of repairs to your list price. Buyers won't be interested in a home they view as having flaws and being overpriced.
Speak with an experienced real estate agent for insight into what a competitive, but fair price will be for your house.
5. Have Realistic Expectations
Although you ideally would love to sell your home quickly and get a good price for it, you should keep realistic expectations about the outcome. You'll have a limited pool of potential buyers for an “as is” home, and it may take longer than you expect to get an offer you're happy with.
Next Steps: Find a Top Austin Listing Agent
If you're ready to sell your home, let Clever Real Estate help!
Clever will connect you with an experienced realtor who will help navigate the sales process, know how to market the house to Austin buyers, and make sure you get the best sales price possible.
When you sell with a Clever Partner Agent, you'll work with a top-performing, full-service real estate agent. Best of all, you'll pay a flat listing fee of $3,000 or 1% if your sales price is over $350,000 — saving you thousands on commissions.
Reach out today and get connected with a top-rated agent in Austin!
Top FAQs About Selling a House “As Is”
What does it mean to sell a house "as is?"
When a home is listed “as is,” it is being sold in its current condition. Buyers recognize the seller makes no promises to repair any defects before the sale.
What renovations add the most value to your home?
If you're selling your home “as is,” you're probably trying to avoid major repairs. Unfortunately, the top issues buyers look for in a home relate to its structure and systems and can be costly to repait.
If you can afford to fix any problems with your roof, windows, air conditioning, heating, or plumbing, it'll go a long way in adding value to your home.
If you can't take on major projects, there are still ways to spruce up your home to give it more appeal. Any improvements in the kitchen or bathrooms help, such as deep-cleaning tile and grout, replacing old counters, and adding a fresh coat of neutral paint.
What is the fastest way to sell a house?
If you want to sell your house fast, a cash buyer will make you an offer quickly, but it will be far below your home's market value.
Similarly, you can work with an iBuyer online and get an offer in just days, but iBuyers have a very specific range of homes they consider — and they take a service fee out of the sale price.
The best way to explore your options is to speak with an experienced real estate expert who knows how to sell properties like yours quickly, and can advise the best course of action.
> Reach out to set up a free, no-obligation consultation to interview realtors in your area.