How Much Do You Lose Selling a House As Is?

What does it mean to sell a house “as-is”? It means selling the home in its current condition without making any repairs or improvements. When a house is sold as-is, the buyer purchases it as it is, faults and all.

Why would a seller choose this option? There are a few reasons a homeowner may want to sell their house as-is:

They must sell quickly due to job loss, divorce, relocation, or other circumstances. Making repairs could delay the sale.
They don’t have the money to invest in renovations and upgrades before selling.
The needed repairs are so extensive that fixing them is not feasible.
They simply want a faster and easier sale process without the hassle of repairs.

While selling as-is allows you to skip costly and time-consuming repairs, you’ll likely sell your home for less than its maximum value. Buyers will factor the cost of repairs into their offer. Just how much less depends on your local real estate market and the condition of your particular home.

How Much Do You Lose Selling a House As-Is?

Several factors affect how much money you’ll lose by selling your home as-is rather than making repairs:

Number and extent of repairs needed – More repairs mean a lower price. Major structural or system issues have a more significant impact.
Overall condition and age of the home – Poorer condition and older homes merit deeper discounts. Newer homes in good shape can still sell close to total value as-is.
The desirability of location/property – Buyers pay more for desirable areas and property features despite condition issues.
Strength of the local real estate market – Buyers accept more flaws in a hot seller’s market. In a buyer’s market, discounts are deeper.

On average, sellers may receive up to 50% less for a home sold as-is compared to a fixed-up home sold traditionally, depending on its condition.

It’s impossible to pinpoint precisely how much money you’ll lose without input from real estate professionals. They can assess your home and advise you on local market conditions to estimate the discount.

How to Minimize Losses When Selling As-Is

If you need to sell your house as-is, there are things you can do to minimize the financial losses:

Get a Pre-Listing Inspection

A pre-sale professional inspection will identify any urgent repairs the house needs. Even if you don’t plan to fix everything, knowing the scope of issues allows you to:

Accurately disclose problems to buyers upfront
Price the home realistically, factoring in repair costs
Avoid nasty surprises cropping up later that derail a sale

Being transparent about the home’s condition prevents you from overpricing and shows you are an ethical seller. Provide copies of the inspection report to potential buyers.

Price it Right

Work with a trusted real estate agent experienced in your local market to price your home competitively as an as-is listing. Overpricing will deter buyers.

Aim for the lower end of the price range for comparable homes recently sold in your area. Leave room for negotiations so buyers feel they’re getting a good deal after factoring in repair costs.

Consider Selling to an Investor

Real estate investors often purchase homes as-is to flip or rent out. Since they specialize in this, there’s no need to make repairs. However, investors pay below market value.

Weigh the convenience of a quick sale against leaving money on the table. Investors buy fast, but you may get more traditional selling.

If selling to a cash home buyer like Real Moola. We buy homes as-is, allowing sellers to avoid repairs and sell quickly.

Choose the Right Option for You

Selling as-is allows you to skip repairs and sell quicker, but you’ll get less money. To decide the best approach, consider:

Your urgency to sell – Do you need to close quickly?
How much money do you need – Is getting the max price most important?
Your budget for repairs – Can you afford to fix up the house?
Your negotiating comfort level – Are you able to handle negotiations?

If fast sales and a limited budget are priorities, selling to an investor may be your best bet. If time and money allow, selling traditionally with repairs maximizes your profits.

Conclusion

Selling your home as-is means less profit but also less hassle. While you’ll likely lose up to 50% compared to selling a fixed-up house, you also avoid hefty repair bills and delays.

To reduce losses:

Get a professional inspection to identify all issues upfront
Disclose defects to buyers openly and honestly
Price realistically at the low end of comparables
Consider all selling options before choosing what’s best for you

With proper planning and transparent communication, you can minimize the financial impact of an as-is home sale.

Some helpful resources on repairing a house:

Some Commonly Asked Questions

What does selling a house "as-is" mean?

Selling a house as-is means selling it in its current condition without making any repairs or improvements. The buyer purchases the home as-is, including any defects or issues.

Why would a seller want to sell a house as-is?

Common reasons for selling as-is include needing to sell quickly, not having the funds for repairs, requiring extensive repairs, or wanting a simpler sale process.

How much less will I get selling my house as-is?

Discounts can be up to 50% depending on the home’s condition and repairs needed.

Should I get a pre-listing home inspection if selling as-is?

An inspection allows you to identify and disclose issues upfront. This helps you accurately price the home and avoid surprises later in the sale process.

What are my as-is selling options?

You can sell as-is on the open market to a real estate investor who will buy as-is or to a cash home buyer like Real Moola, who purchases as-is.