Are you feeling overwhelmed by the idea of getting your home ready for the market? Between cleaning, staging, and tackling repairs, preparing a house for sale can be a stressful and time-consuming process. If you’re balancing a busy schedule or simply don’t want the hassle of managing contractors and repair projects, you may have considered selling your house “as is”. But, is selling your house “as is” a good idea?
Selling a house “as is” typically means that you’re offering the property in its current condition, without making any repairs, renovations, or improvements prior to closing. According to Realtor.com, when you sell as is, you are not offering any credits to the buyer for repairs either.
This can save you time and money upfront but may cost you money in the long run. That’s because buyers are often hesitant to offer full market value for a home being sold as is. They may wonder what hidden problems could surface down the line, and that fear can impact their offer price.
So, How Much Do You Lose Selling Your House As Is?
1. You can lose cash.
According to Spyglass Realty, selling a house as is could result in a loss of up to 20% of your home’s market value. For a $300,000 home, losing 20% means taking a $60,000 hit. It’s a sizable loss, and something to consider when weighing the benefits of selling as is versus investing in repairs. However, the exact amount depends on multiple factors like the property’s condition, location, and the state of the real estate market. More on this below.
2. You can lose time.
Additionally, you may lose time if the buyer insists on inspections. While the “as is” designation signals that you won’t be making repairs, some buyers may still request an inspection and attempt to negotiate credits based on their findings. This could delay the sale, which is something to keep in mind if you’re hoping for a fast transaction.
What Can Impact How Much You Lose Selling “As Is”?
Several factors can affect how much you might expect to lose—or retain—when selling “as is”:
1. Condition of the home
The property’s current state is one of the main factors that influence sale price. Homes with primarily cosmetic issues may experience a smaller discount compared to those needing significant repairs, such as roof replacements or electrical upgrades. Buyers will often adjust their offers based on the estimated costs of necessary repairs.
2. Location of the property
A home’s location plays a large role in how buyers view an “as is” sale. In high-demand areas, some buyers are willing to overlook minor issues to secure a property, which can help maintain its value. In less competitive areas, “as is” properties may need to be priced more attractively to generate interest.
3. Current market conditions
In a strong seller’s market, where inventory is low and demand is high, selling “as is” may still result in competitive offers, as buyers have fewer options and may be willing to compromise on condition. In a buyer’s market, however, an “as is” listing may need a larger price reduction to stand out among other properties.
What Can You Gain by Selling Your House As Is?
There are benefits to selling as is, especially for sellers who want to move quickly or avoid the stress of renovations. Here’s what you stand to gain:
1. Nothing out-of-pocket.
You won’t have to pour money into costly repairs or renovations before putting your home on the market.
2. Leave it behind
When selling “as is,” you don’t have to worry about cleaning, repairs, or removing belongings that may not add value to the property. Whether it’s minor items in storage or larger maintenance projects, many buyers of “as is” homes—whether individuals looking for a fixer-upper or investment companies—are prepared to handle these things after purchase. This flexibility means you can walk away from the property without the added burden of tidying or upgrading, saving valuable time and energy.
3. Quicker, smoother closing.
You save valuable time by skipping the process of coordinating with contractors and waiting for projects to be completed. In fact, according to Bankrate, selling your home as is can lead to a smoother and expedited closing.
The Best of Both Worlds: Selling to “We Buy Houses” Companies
For homeowners who want to sell quickly and avoid repair-related stress, reputable “we buy houses” companies provide a convenient option. These companies buy properties in any condition, offering sellers a quick, cash-based transaction that skips over much of the hassle of a traditional sale. A fair offer from a reputable cash buyer can minimize the financial gap seen in typical “as is” sales, and these companies often prioritize a smooth and transparent process for homeowners.
Baltimore Homeowners: Charm City Builders
For those in the Baltimore area, Charm City Builders is a trusted local buyer. We buy homes in Baltimore in their current condition for cash, allowing you to avoid the hassle of repairs while getting a fair offer. Veteran-owned and committed to integrity, Charm City Builders combines the convenience of an “as is” sale with a reputation for reliability, backed by a 4.7-star Google rating. Baltimore homeowners looking for a smooth, straightforward alternative to traditional sales can reach out to Charm City Builders for a consultation to explore their options.
