Sell Your House As-is: What You Need to Know

Do you want a quick sale on your property but are worried it might not be 'sale' ready? 

Wanting to sell your house as-is sounds like a good option until you start considering several factors. Would it be better to make some updates? What about the outdated fittings and cracked windows? Can I get a good price for the home "as is?"

Luckily, selling your house as-is simplifies can be a good option vs. making repairs and updates to compete with other homes and prices in the area. In this blog, we break down everything you need to know about selling your home right now so you can get the best deal and make the right call. 

What Does It Mean to Sell a Property "As-is?"

To sell your home "as-is" means to list a property without undertaking necessary repairs and upgrades that would otherwise be required or expected before listing a property. The tradeoff is that the sale price can be lower to reflect the estimated costs of these updates. Selling "as-is" means there are no guarantees that everything is in working order, and the buyer will know they are purchasing a property in this condition.  

In addition, state legislation may require some defects (commonly more serious or potential health hazards) to be in writing. 

Should I Sell My House As-is? 

While selling your property is a personal choice, here are some pros and cons of selling your property in its existing condition so you can make a more informed decision.  

Pros Of Selling a House As-is 

There are several positives to selling your house as-is, and it may depend on your circumstance.

Some of the positive reasons to go this route include:  

• Faster settlement and overall timing: Selling your house in its current conditions provides immediate benefits such as more rapid access to funds and the ability to make decisions about your next move much quicker. It also means you can take advantage of a hot market faster without worrying about it changing while preparing for the lengthy sale process. 

• Fewer costs on upgrades: One clear benefit is the savings you will make from not conducting repairs (which can quickly add up).

• Less administration and organization: Preparing a house for sale is challenging as you manage contractors, source quotes, and even grab the odd paintbrush yourself to get things done. Selling as-is frees you from many laborious and time-consuming tasks associated with preparing a house for sale. 

• Inherited properties don't become a burden: Sometimes, inherited properties can become a curse rather than a blessing. By selling the property without making updates, you can access fast cash without wasting time and effort on an inherited property that may require costly upgrades. 

Next, we'll look at some downsides when considering if it's best to "sell my house as-is, Twin Cities."

Cons of Selling Your Home As-is  

Selling your house also comes with some drawbacks which can impact your decision. 

Some of these include: 

• Lower selling price: The additional costs for repairs and upgrades will be factored into the overall selling price, and you will have to list your property for a lower price than what it could have otherwise sought. 

• Buyers want move-in-ready properties: Today's buyers commonly search for places they can either move into immediately or rent out as an investment property instead of buying an asset that may require extensive value-add to make it viable. 

These are just a couple of reasons why many homeowners take time and money to fix up their homes before selling! 

Will I lose Money Selling The Property As-is? 

There's no easy formula to determine how much you'd make or lose selling your house as-is. 

Standard figures indicate that as-is properties are sold at 75-95% of the would-be price had the property been upgraded. However, once you factor in savings on repairs, plus the market condition, you might not be losing as much as you thought and could even come out on top.  

Take Bill, for example, who is selling his house in Minnesota, which would go for $300,000. However, it requires updates, so we'll take off 15% to make the sale price $255,000.

The property requires the following work: 

• Severe foundational repair = $15,000

• Roof replacement $5,000

• Window replacement (400$ per window) x 10 = $4,000

• HVAC replacement = $6,000

That's already $30,000 in repair costs. This does not include additional payments for contractors and subcontracts, taxes upon the sale of the property, cleaning fees, staging costs, and more. Plus, higher-end updates such as kitchen remodeling can cost upwards of $40,000. 

In addition, it's not uncommon for homeowners to take out loans to prepare their property for sale. So once you've included interest, you may not be selling that much under, if under at all! However, saving the costs of potential repairs could still put the same amount of money in your pocket after the sale, even when selling at a lower cost for an "as-is" property. 

How To Sell A Property As-is 

Selling a house as-is generally follows the standard sale process with some deviations. If you're considering selling your property as-is, use the following steps to help with the process. 

1. Get advice on how much your home is worth. Visit a local real estate agent to get your house priced. 

2. Do a home inspection. Book a home inspection to ensure you're covered concerning issues and help discover any additional problems you may not be aware of.

3. Disclose defects. Following state guidelines, it's best to be upfront about any defects, such as mold, that could cause health concerns. 

4. Get estimates for potential repairs. Even if you're planning to sell without making updates, having accurate cost forecasting will give you greater bargaining power.

5. Set your price. Now that you've determined a value plus any remaining costs, it's time to set a price and always tag your listening as-is. 

That might seem like a lot of work to sell a home you need to move on from quickly. Is there a better way?

Why Not Simplify the Process With Homefield Homebuyers?

At Homefield Homebuyers, "we buy houses cash, Minneapolis," and close in as little as a week. There is no need to hire a realtor, photographer, or staging professional or spend time and money getting your house ready to sell. 

Whether your house has deferred maintenance, unfinished projects, or is full of things you no longer need, as a cash buyer, we're here to help you move to the next stage in your life as quickly and efficiently as possible. 

Sell Your House As-is With a Cash Offer from Homefield Homebuyers

Whether saving on costly upgrades or needing fast access to cash, selling a house as-is can make a lot of sense in many situations. It doesn't always result in a loss and is an excellent way to exit a property worry-free!

If you're ready to learn more about the "as-is" process with our cash buyers or would like to consider an offer, reach out to the Homefield Homebuyers team today.