Should you sell your house as-is?

The process of selling your home can be daunting, stressful, time-consuming, and everything in between. Selling a house as-is may result in a smoother and faster home sale, but homeowners who choose to sell without improving the home’s condition (and thus its value) may lose money.

While many buyers may expect a turnkey home, you may be able without making repairs and without losing interest, depending on the market conditions (whether it's a seller's or buyers market). After all, things like a great location, lot size, and floor plan can be major selling points even if your home lacks curb appeal.  

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

Selling your house as is doesn’t necessarily mean the house is in poor condition. Selling as is is when the current homeowner and a prospective buyer agree that there will be no repairs made to the house before the sale - what the buyer sees is what they get. You may also encounter homes being sold as-is during a short sale.

There are a lot of reasons people choose to sell a house without repairing it. Many sellers don't want to spend upfront time and money on expensive repairs before listing their home, while others want to avoid potential delays from negotiating repairs with their buyer.

Some homeowners sell in as-is condition because they don't want to live in construction zone while they deal with buying a new house at the same time.

Can you sell your home as is?

There are no laws against selling your house as-is, but you may have a harder time finding interested buyers. It's also important to know that most mortgage lenders won't extend a loan to someone for a home that has health and safety, or structural issues, like foundation problems. If your house has any code violations and you don't fix them, you might end up limiting yourself to cash buyers, which can be harder to come by. 

In a seller's market, where there are more buyers than there are houses, then you may be able to get away with selling your house without making extensive repairs. Your real estate agent can also market your home as an excellent opportunity for home buyers looking for a fixer-upper. But if demand for houses is low, then prospective buyers will be less willing to purchase a house as is.

Who buys houses as-is?

Some companies that buy houses for cash (like We Buy Ugly Houses), specialize in purchasing properties in as-is or even subpar condition. They will typically make the needed repairs and resell on the open market or to investors.

5 tips for selling a house as-is

If you decide to sell your house in the condition as-is, here are some steps to take to make the best of it:

1. Get a pre-inspection

Homeowners can actually get pre-inspection prior to listing their home. The inspector will let you know of any issues with the house so there are no surprises when potential buyers order their own home inspection. Being aware of what needs work can help you be an informed seller, in the best position to negotiate. 

2. Be honest with your buyer

It's best to be transparent with potential buyers when selling as-is — there's no use in hiding defects or flaws that could jeopardize the sale later on. Many states (like Texas) require homeowners to be completely honest about the property condition and any known issues. 

Providing any information early on may also help you sell your home faster, since buyers will know exactly what they're getting into when purchasing your house instead of assuming the worst. 

3. Clean up 

If you’re not making repairs, you should at least make sure to declutter and clean the home. You can also mow the lawn to increase curb appeal.

→ Learn more about preparing your house for sale

4. Set a fair asking price

When deciding on a list price, make sure you look at other homes for sale in your area and factor in the necessary repairs for your home. After all, competitively-priced homes tend to sell quickly, while overpriced properties usually spend more time on the market. It's also helpful to decide ahead of time the minimum sale price you're willing to accept so that you can speed up the negotiation process.

5. Consider listing with Orchard

When you sell your house with Orchard, you'll have the option to make upgrades to your house so you can maximize your profit with Concierge. Our experienced agents will also let you know what minor repairs you can skip and still land your house in desirable condition and increase its market value. Get started with a free home valuation — our estimates are 30% more accurate than the rest.