“Should I sell my house as-is?”
We hear that question a lot – and the answer always depends on several factors:
- How much of a profit you need to make
- How quickly you want to sell your home
- Whether you have to sell your home before you can move into the next one
- What kind of repairs or upgrades would be necessary
What Does it Mean to Sell a House As-Is?
When you ask a REALTOR® whether you should sell your house as-is, it means you’re interested in selling the property in its current state. You and the buyer would have the understanding that you wouldn’t repair anything and that the home comes with all its current faults.
However, selling a house as-is doesn’t relieve you of your legal obligation to be honest about its condition. When you sell a home, you are legally required to disclose its defects to prospective buyers. That way, people interested in buying the home will be able to make an informed decision.
What Should I Fix Before I Sell My House?
Before you make any major improvements, you should talk to your real estate agent. Some improvements are unnecessary – and some might actually cost you more than they’re worth. Don’t dive into any projects without asking your agent what buyers want to see. You might think about minor cosmetic improvements, though, like repainting, and minor repairs such as replacing broken window glass, fixing leaky faucets or patching holes in the walls. These improvements may be a good idea even if you do decide to sell your house as-is, because they’re things that make buyers feel better during a visit.
How to Decide What to Fix
When you’re deciding what to fix and what to leave as-is, your REALTOR will give you guidance – but aside from that, you can:
- Weigh the cost of proposed improvements against the home’s value
- Check out other homes for sale to see what type of condition they’re in
- Concentrate on areas that your agent says buyers are looking at
Can You Sell Any Home As-Is?
You can sell any home as-is, but your selling price needs to reflect the home’s condition. For example, if the home you’re selling needs a lot of work, you may want to price it low and expect only house-flippers and building contractors to make offers. Usually, when home-buyers say they want a “fixer-upper,” they don’t mean they want to dive into major repairs and upgrades – they typically mean that they want to make a few cosmetic fixes.
Let’s say the home you’re selling is worth $200,000 when it’s in great condition – but it needs a new roof and new electrical wiring, which could cost up to $25,000 (or more) together. Buyers aren’t going to offer you $175,000 for the house, though; instead, they’ll buy a $200,000 house and avoid the hassle of putting on a new roof and having an electrician come out. You’ll be better off selling the home for a lower price, because frankly, it may not sell if you ask too much.
Pros and Cons of Selling a House As-Is
Like any real estate transaction, there are pros and cons to selling a house as-is. Check out this table to learn more.
|Pros of Selling a House As-Is||Cons of Selling a House As-Is|
|You don’t have to make any further financial investment in the home.||Buyers may put in low-ball offers because they assume your house has serious defects. They may believe you’re desperate to sell.|
|You can avoid the stress and hassle of a long sales process and you just want to get rid of the home.||You may have to work harder to show that your home is worth the price you’re asking.|
|Selling as-is can help you get out of a sticky financial situation, such as when you’re about to default on your mortgage.||You may attract fewer prospective buyers because calling a home “as-is” can look like a red flag.|
|Prospective buyers may view your home negatively before they even tour it. Sometimes listing a home as “as-is” signals that there’s something major wrong with the property – even when it’s fine.|
Can You Sell “Sort-of As-Is”?
Sometimes it makes sense to make a few repairs and invest a little of your own money into the house before you sell it. Your REALTOR can walk you through possible scenarios (every home – and every neighborhood – is different) so you can make the best possible choice for your home. You can also:
- List your home without using “as-is” language and decline to make repairs or upgrades that come with offers
- List your home without using “as-is” language and choose to make some repairs or upgrades
- List your home and give buyers allowances for major repairs, like flooring, and minor upgrades, like painting
Related: Talk to a REALTOR near you now
Are You Selling Your Home As-Is?
If you’re thinking about selling your home as-is, or if you need to sell your house quickly, we can help. Call us at 443-955-1227 to find out how we can get your home in front of all the right buyers. If it’s easier, just fill out the form below and we’ll get back to you.