Selling a House As Is: Should You Really Skip Those Repairs?

Selling a house as is can be a faster, more convenient alternative to a traditional listing — especially if you need to move fast or don't want to sink a lot of money into repairs.

And while some sellers regret not making repairs before putting their homes on the market, there's no guarantee that the money you spend fixing up your house will offer a good return on the investment.

If you're considering selling a home as is, there are two options we recommend:

1. Get a real estate agent that specializes in selling as is properties. Clever can connect you with top-rated agents near you and save you thousands on commission. Fill out this form to get started.
2. Get multiple cash offers from investors. Clever Offers will gather multiple quotes from trusted cash home buyers in your area. Simply fill out this form to get started.

The fastest option is to get a cash offer, but it never hurts to get an opinion from a real estate agent on how quickly your home can sell if you list it as is.

We asked more than a dozen realtors for their insights on fixing up your house vs. selling as is. Here's what they had to say.

What does it really mean to sell a house as is?

"Selling a house as is means the property is being sold in its current condition and the seller is not responsible or obligated to make any repairs," says real estate agent and investor Steve Nicastro. 

However, listing a home "as is" doesn’t mean you're completely off the hook from negotiating repair requests from a buyer.

"Even though the home is being sold as is, the buyer is advised to do their due diligence and order any reports which would help them make an informed choice about moving forward on the purchase," advises Sammy Lyon, Realtor and Associate Broker at Dow Capital. "This typically includes a general home inspection, plus any follow-up reports like termite, sewer camera, roof, HVAC, plumbing, electrical, foundation, mold, septic, pool and spa."

While buyers aren't technically supposed to request that the seller make repairs in an as-is contract, inspections leave the door open for negotiation. "Say a buyer discovers serious mold in an inspection, they may ask the seller to fix it or provide a credit to cover mold remediation," adds Nicastro.

In most cases, it's in your best interest to negotiate with the buyer, says Lyon. "If the seller takes a hard line on not making any repairs or giving credit, the transaction is likely to fall out of escrow. And the seller now needs to disclose those issues to the next buyer."

How much do you lose selling a house as is?

If you’re trying to sell an outdated but otherwise livable house in a competitive market, you’re unlikely to lose much money selling as-is.

“In a seller's market with low inventory, you may be able to sell as-is and still get a good offer," says Joy Aumann, realtor and co-founder of La Jolla Life. "Buyers are eager and you’ll likely still come out ahead. I recently had a client sell a home needing a new roof and plumbing repairs for just $30,000 under list price. They were thrilled.”

But if there are more homes than buyers — or your home is in a condition that would make it difficult for sellers to get approved for financing — your only offers may be from investors, who typically offer around 70% of fair market value, although in some cases they can go as high as 85%.

Ultimately, how much you lose selling as-is depends on a mix of factors, such as your home’s condition, the competitiveness of the local market, and the type of buyer you’re selling to.

Pros and cons of selling a house as is

The as is route may be right for you if you’re looking for a quick, hassle-free home sale. However, buyers will typically expect a much lower sale price in exchange for taking on repairs.

Benefits of an as is sale

Here are some of the main benefits and drawbacks of selling a house as is.

Potential for a faster close

An as-is sale is typically faster than trying to get your house ready for listing says Brady Bridges, broker and owner of Reside Real Estate. “You can post your property on the market and get done with it right away if you plan to sell it as it is — saving yourself weeks or even months of waiting for repairs, renovations, and other chores to be finished.”

If you sell to a cash buyer or real estate investor, then you could close even faster. These buyers don't require financing approval and are experienced in quick sales. Some cash investors can close in less than two weeks.

No need to make repairs

Selling as-is means you can avoid time-consuming and costly repairs, since buyers agree to accept the home in its current condition. But buyers can still request repair concessions, especially if a defect is discovered during the inspection that wasn’t previously known.

Let's say a buyer agrees to an as-is purchase, but the inspection uncovers plumbing issues that are going to cost $30,000 to fix — the buyer may ask you to provide a buyer credit for that amount.

Even when listing a home as is, it may be worth doing some minor repairs that make a difference to buyers. “Focus on minor yet impactful improvements like painting or fixing obvious defects," says Jave Blackburn, CEO of WeBuyAnyHouseAsIs. "Investing in major renovations often doesn’t yield proportional returns.”

Less hassle over inspections

A survey of recent American home sellers shows that 26% regret making too many concessions to buyers, which are often the result of issues that arise during the home inspection. However, inspections tend to be less of a hassle in as-is sales, since buyers already expect a lower sale price in exchange for taking on the risk and costs of repairs. 

Some buyers of as-is properties may waive the inspection altogether. Buyers who do request an inspection will often only use it to renegotiate the terms of the sale if a major issue is discovered that will significantly increase their potential repair costs in the future.

While an as-is sale doesn’t guarantee that a buyer won't ask for repair concessions, such negotiations are less common. "From the seller's perspective, as-is is the strongest option in your favor when it comes to the contract types," says Steve Nicastro.

Risks of selling as is

Selling a home as is has its downsides.

Lower profit on your sale

For many sellers, the biggest negative of selling as is is a lower sale price, since most buyers willing to take on repairs are looking for a bargain.

Depending on market conditions and the repairs needed on your house, you could get a better return on your investment by completing repairs and improving your home’s list price. As Bridges says, “You have the scope to gain an extra 4%-5% resale value just with a few cheap improvements and repairs. While selling your house as it is would be worth at least 15–20% less than the market value.”

However, if you’re selling in a highly competitive market, selling as-is could still get you close to fair market value. In fact, investing in costly repairs may offer a poor return on investment if buyers are willing to pay top dollar regardless of your home’s condition.

Limited buyer pool

As-is properties tend to have a much smaller buyer pool, which is one of the reasons why they also tend to sell for less. Unless you’re in a seller’s market, most buyers are going to favor move-in ready homes that don’t require significant repairs.

By selling as-is, you may find that your only buyers are investors and property flippers who are looking for deals. While investors and cash buyers offer the convenience of a quick sale — and they’re often more willing to buy even severely dilapidated properties — they look to homes at a bargain.

Potential financing delays

If you’re selling your home on the open market, you’re at higher risk of offers falling through because of financing issues. 

“If you need a full remodel or have a ton of deferred maintenance, it may make the most sense to sell the home as-is," explains Suzanne Seini, CEO and Owner of Innovate Realty, "However, if that is the case, buyers may have problems getting financing with their lender so you may only be entertaining cash offers.”

Mortgage lenders typically require a home appraisal before approving a loan. If there are serious issues with the property or it is unlivable, many lenders will refuse the loan.

Financing will be less of an issue if you’re mainly entertaining cash offers, such as from investors who already have their financing lined up. But if you’re hoping to sell to a traditional buyer, you should be prepared for potential delays.

When to consider seling a house as is

Despite the potential for a lower sale price, selling your house as-is may make more sense for you in certain circumstances:

You need to sell quickly

Repairs can take weeks and even months, which may be more time than you have. If you need to sell your house fast due to finances or unexpected circumstances, then an as-is sale may be the best option. If you live in a market with high seller demand, selling as-is may not even lead to much of a decline in sale price.

Buyers who purchase as-is properties are often willing to move quickly on a sale and settle in cash. Many of these buyers are property investors and companies that specialize in helping sellers out of difficult situations. As such, they are less likely to be scared off by urgent timelines or homes in need of significant repairs.

Repair costs exceed the potential return on investment

While renovated kitchens and updated aesthetics can increase your home's appeal, a major reno may not be worth the cost. Data on home improvement costs vs. resale values shows that most home improvements don't offer a full return on the investment.

“If a house needs a costly renovation, such as full roof replacement, which costs between $6,700 and $80,000, or new HVAC, which costs $5,000 to $34,000, it’s better to leave the house at its current stage," suggests Seth Williams, owner of Reference Real Estate.

A better bet is to adjust your list price to account for the work needed, suggests Williams. "A property with a dilapidated house attracts home flippers, while a new HVAC won’t bring a greater ROI.”

The house needs a ton of updating

Even if you can afford some improvements to an outdated home, you may be better off skipping them. Significant renovations that are only half-done can actually detract from your home’s appeal.

“If a homeowner is not going to commit to doing an upgrade all the way, or more than 75%, it may not be worth it and seen as shabby to buyer," says Matiah Ty Fischer, Founder of AllHomesLasVegas.com, "An example of this could be in a kitchen upgrade adding a new modern backsplash and appliances, but leaving the cabinets looking old and worn down or having an old worn down countertop.”

Moreover, home improvement data shows that major renovations even to high-impact areas like kitchens only recoup about half the cost in terms of increased home value.

The house isn't livable

Traditional buyers will be unlikely to qualify for a mortgage on a property in poor condition.

"If someone makes an offer on an as-is home with a mortgage contingency, the condition of the property could impede their ability to secure enough financing to cover the purchase and repairs, cautions realtor Sharlys Leszczuk of Windermere West LLC. "Plus, few people will have the means to live elsewhere if major improvements are going to displace them."

If your home suffers from serious structural or safety issues, your only option may be an as-is sale to an investor.

Options for selling a house as is

Homeowners interested in selling a house as is have a few different options: sell to an investor, sell to iBuyer, or list with a realtor.

1. Sell to an investor

Investors range from nationally known "we buy houses" companies to local house flippers. Most can make an offer within 24–48 hours and close in as little as 1–2 weeks. Many investors will also pay closing costs, such as real estate attorney and title fees.

While convenient, selling to an investor comes with significant tradeoffs: A recent survey of real estate investors found that the majority cap their offers at 70% of a home's potential resale value. "This is because we need to take into account the costs of repairs and renovations, as well as our desired profit margin," says Alex Locklear owner of NC Cash Homebuyers.

That said, top cash home buyers may offer you more, especially if your home is in a great location or a competitive real estate market.

Before selling to an investor, we highly recommend getting multiple offers to compare. You can do this on your own, with the help of a realtor, or through a free cash offer network like Clever Offers.

2. Sell to an iBuyer

iBuyers also purchase homes in as-is condition, but they tend to avoid homes that need major repairs or renovations. If you have a home in relatively good condition but still want to avoid the usual listing process, an iBuyer may be worth considering.

Like investors, iBuyers like Opendoor and Offerpad can provide an offer in as little as 24 hours and close in as fast as two weeks. They may not pay as much as you'd earn from a traditional home sale, but they tend to offer significantly more than investors in the areas where they operate.

A final consideration is that while iBuyers won't ask you to make any repairs, they will make deductions for estimated repair costs. They'll also charge you service fees and closing costs. Therefore, your final sale price may be significantly lower than your initial offer from an iBuyer.

3. Partner with a realtor

Listing with a realtor is likely to get you a better price for your home than going solo. A good realtor will know how to market your home to the largest pool of competing buyers, including investors and local bargain hunters.

The tradeoff is that listing with a realtor could take weeks (if not months). And even if you end up selling to an investor, you’ll still have to pay a realtor commission averaging between 2.5–3% of the home sale price — although you can pay less with a low commission realtor.

Even when factoring in commission, sellers who use a realtor tend to make more money and express greater satisfaction with their sale. A survey of more than 650 recent home sellers found that those who used an agent averaged $79,000 more profit and were 43% more likely to be satisfied with their selling price.

How to sell a house as is

Here are some realtor-approved tips for selling a house as is.

Get a realistic estimate of your home value

While renovated properties tend to sell for more than homes sold as is, several factors determine your home's market value — including your location, the number of buyers relative to the inventory of homes for sale, and how your home measures up to other properties on the market.

Your best bet is to ask a realtor what your home would be worth in its current condition vs. after repairs and upgrades. Many realtors are willing to provide a comparative market analysis for free, and you have no obligation to list.

Specify “as is” in your listing

To ensure you get offers only from serious buyers, you should specify in the listing that the property is being sold “as is.” Most buyers are looking for homes that are move-in ready and won’t consider homes that are going to require significant repairs. Traditional buyers may also have trouble getting funding for an as is home due to insurance or appraisal concerns.

As Leszczuk says, “You likely won't appeal to the 'move-in ready' audience. And, if the lack of improvements could impede someone's ability to take out a mortgage on the home, that could further limit your pool of potential buyers.”

By specifying “as-is” in your listing, you’ll likely limit yourself to investors, cash buyers, and those looking for a fixer upper. But that smaller buyer pool also means you’ll avoid haggling with buyers who are looking for homes in better condition.

Follow your state's disclosure laws

When listing a house for sale — even one being sold 'as is,' — most states require you to fill out a form called a seller disclosure, detailing any known defects with the property.

While you don't need to list every chip in the paint or scuff caused by normal wear and tear, you will need to disclose anything that could affect the home's livability or resale value. That includes issues like water damage, mold, asbestos, leaking roofs, and cracked foundations.

Many seller's disclosure forms also require you to describe the condition of the home’s structural elements, major systems (like the electrical and plumbing), and appliances.

Failing to provide the buyer with a complete seller’s disclosure is risky, even if the buyer agrees to purchase your property as-is. Buyers can back out of a contract if they haven’t been properly informed about the condition of the house, either because the seller’s disclosure wasn’t provided or it was missing important information.

Invest in minor, high-impact improvements

Home improvements can often boost your sale price, but you’ll want to spend your money carefully.

"Repairs that may make sense to do before listing include adding a fresh coat of paint, updating lighting fixtures, and replacing worn-down hardware and faucets,” says Fischer. Such improvements require minimal time and investment, but they could bring in a larger pool of potential buyers.

Before taking on pricier renovations, advises Leszczuk, "get quotes from multiple contractors for the repairs needed. This is not only good for you to decide whether or not to make the improvements yourself, but will also give you a great negotiation tool to counter an offer that comes in below your list price. Your real estate agent should be able to connect you with quality contractors they’ve worked with before.

Avoid expensive cosmetic upgrades

Expensive renovations are unlikely to offer a great return on investment.

“Examples of repairs that sellers should typically avoid making before selling include extensive kitchen or bathroom remodels, adding luxury features, or investing in high-end finishes," says Chris McGuire, investor and founder of Real Estate Exam Ninja. These types of upgrades may not align with the preferences of potential buyers or provide a significant return on investment.”

If you have the budget to make repairs, focus on the most important ones first. As Martin Orefice, CEO of Rent to Own Labs, says, “An outdated, but functional, kitchen is a much lower priority than fixing a leaky roof.”

Watch out for common deal-killers

While buyers won’t expect an as-is home to be in pristine condition, some issues could turn out to be deal breakers.

“Repairs that go unfixed can disqualify buyers with first-time or government loans from purchasing a home because the loan is not insurable under certain conditions," says Elisha Lopez of Ocala Realty World in Florida.

However, these tend to be major issues that make the home unlivable. Examples include leaks, mold, termite infestation, dry rot, plumbing, and air conditioning issues.

Consider offering buyer credits upfront

If you know of a significant issue with your home but don’t want to invest the time and money to fix it, offering a repair concession upfront can be an effective marketing strategy. This strategy could increase your buyer pool to include those who may otherwise not have considered an as-is property, but who feel reassured by the fact that the buyer credit makes any future repairs more affordable.

As an example, Asken notes, “A client of mine bought a property where the seller knew his foundation needed a serious repair. He had gotten a bid for $40,000 for the repair and wrote into the contract that he was going to leave $40,000 from the proceeds of the sale in an escrow account to be paid to the foundation repair company at close, thereby taking the problem out of the negotiation completely.”

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