Selling a house "as is" means you're putting it on the market in its current condition, flaws and all. It's an appealing option for homeowners who want to skip the hassle of fixing up their property. But does convenience come at a cost? And how much do you lose selling a house as is?
What does "selling as is" mean FOR YOU?
When you sell a house as is, you're essentially telling buyers, "What you see is what you get" and it's a great option for those who need to sell property fast.
This can mean:
No repairs or improvements: You're not investing time or money to fix issues like leaky roofs, outdated kitchens, or peeling paint.
Disclosing known issues: You're still legally required to disclose major problems in NY, like structural damage, mold or even legal battles as is in most states.
Appealing to specific buyers: Typically, investors, flippers, or people who don't mind a fixer-upper will be most interested.
How much do you lose selling a house as is?
The amount you lose depends on several factors, including the market, the condition of your home, and how quickly you need to sell property fast.
The truth is that 71% of home sellers in the US complete at least one improvement project before selling their home. Also, 77% say they don't consider buying a house that isn't move-in ready.
So, how much do you lose selling a house as is?
On average:
Homes sold as is typically sell for 10% to 40% less than comparable homes in good condition. Seeing as some remodeling projects can increase the resale value from 150% to 198%, let's see an example.
According to recent data, these are the main home remodeling projects with the highest ROI. So let's do some simple math (we will not bore you!)
Project 1 - Garage door replacement (193.9% cost retention): $10,000
Project 2 - Entry door replacement (188.1% cost retention): $15,000
Project 3 - Stone Veneer (153.2% cost retention): $20,000
The value retained for each project:
19,390+28,215+30,640 = $78,245
The total cost of remodeling:
10,000+15,000+20,000=$45,000
How much do you lose selling a house as is?
The short answer is 42.4%!
So, if you sell the house as is, you lose 42.4% of the potential resale value that these remodeling projects could have added.
What are some other drawbacks of selling the home as is?
Fewer offers: Since as-is homes often attract a smaller pool of buyers, you might not get the bidding wars that drive up prices.
Negotiation power: Buyers might push for further price reductions once they discover the full extent of the repairs needed.
Despite these losses, selling as is can still make sense for certain homeowners. Let's explore the pros to help you decide if it's the right choice for you.
See also: Cheap and luxury home renovations to increase its value
Pros of selling a house as is
Save time
If you're in a hurry to sell—say, due to relocation, financial strain, or inheritance—selling as is can be a quick solution. You avoid the weeks (or months) it takes to complete repairs.
Avoid repair costs
Major repairs can cost tens of thousands of dollars. Selling as is lets you sidestep those expenses and put the burden on the buyer instead.
Reduce stress
Managing contractors, timelines, and unexpected repair surprises can and will be exhausting for most. Selling as is eliminates that hassle entirely.
Attract cash buyers
Many as-is sales appeal to cash buyers like investors or house-flipping companies. These buyers often close deals faster and with fewer contingencies
Flexibility
Selling as is can attract certain buyers who appreciate the opportunity to customize the home to their liking. This is especially true in areas where homes are in high demand and buyers are willing to put in extra work for a property in a good location. For some people, these benefits outweigh the financial hit. If you're prioritizing convenience over profit, this route can make a lot of sense.
Tips to minimize losses when selling as is
If you've decided to sell as is, here are a few strategies to reduce financial losses:
Be upfront
Disclose everything about the home's condition. Transparency builds trust.
Price it right
Don't overprice the home. Work with an appraiser or do a market analysis to set a realistic price. There are many real estate comps that impact the price.
Highlight the positives
Emphasize what's great about your home, like location, lot size, or unique features. Make sure buyers can visualize the potential.
Disclose honestly
Being upfront about known issues builds trust with buyers and can prevent last-minute deal fallout.
Consider selling a house without a realtor or this other option
If you're confident in handling the sale yourself, skipping a realtor can save you 5% to 6% in commissions. However, this requires time and knowledge to manage the process effectively. There's another option as well, which includes using an all-in-one platform like locqube where you can manage most things yourself and ask for a real estate agent when/if you decide you need one.
Market to the right audience
Focus on buyers who actively seek as-is properties, such as investors or first-time buyers looking for a deal.
Clean it up
Even if you're not making repairs, a clean, clutter-free home will attract more buyers. Even lighting can impact the home sale.
Invest in an inspection
While you're selling "as is," offering a pre-listing inspection report which ranges around $300-$400 can reassure buyers that there are no hidden surprises. This can make your home more appealing and help justify your asking price. And (more importantly) it can help you avoid losing a deal or getting sued if you fail to disclose a serious home defect.
When selling your home as is makes sense
Selling as is might be the best option if:
You need to sell property fast due to financial or personal reasons.
The cost of repairs outweighs the potential increase in sale price (repeat after me: not all repairs bring as much value as you think!)
You're targeting investors or flippers who specialize in fixer-uppers.
Bottom line
So, how much do you lose selling a house as is? It’s often a trade-off between time and money. While you might lose from 10% to 40% of your home’s value, you gain convenience, speed, and peace of mind.
For homeowners who can’t afford repairs or simply want as little stress as possible selling as is can be the way to go.
In the end, every situation is unique. Think about your goals, do the math, and choose the path that makes the most sense for you.
