40% of home sellers dread repair costs. That’s why selling a house as is to cash buyers is a common choice across America. But here’s the catch: you get a single lowball offer slashing your home’s value by 30% to 70%! No wonder 85% of sellers fear getting lowball offers.
However, you need not settle! With the best cash buyer marketplaces near you, you can get multiple offers from national and local cash buyers instantly! This bidding war may boost your home sale value in the Land of Opportunity.
Key Takeaways
- Compare cash buyers, FSBO websites, and cash buyer marketplaces to maximize your home’s value when selling as is.
- Make strategic repairs like fixing visible water stains, electrical issues, and weather-related damage to boost appeal.
- Get a pre-inspection to identify common defects like structural damage, pest infestations, HVAC issues, and foundation problems.
- Disclose all known material defects like structural flaws, environmental hazards, and water damage honestly as required by your state.
- Complete the “AS IS” residential contract accurately and remember that buyers can typically withdraw during the inspection period (usually 7-15 days depending on your state).
What Does Selling a House As Is Mean?
Selling a house as is in means offloading your property in its current state without fixing any defects. Buyers purchase the house, and you aren’t liable for repairs. In contrast, you have to make the repairs listed in the home inspection report in a traditional sale.
Most states require sellers to disclose all known material defects that affect the property’s value. This includes issues like water damage, structural defects, major system failures, and environmental hazards. Buyers can cancel the contract or even sue you if you fail to disclose these defects.
How to Sell a House As Is?
Selling your home as-is doesn’t have to be a headache. These 5 steps can help you sail to a fast, hassle-free sale:
1. Choose How to Sell Your Home
You have 3 alternatives when selling your house as is:
- Sell to a Cash Buyer: You can save on repair costs with cash home buyers, but expect offers only up to 30% to 70% of your home’s Fair Market Value. Meanwhile, iBuyers can offer up to 80%, but have strict eligibility criteria for the homes they purchase.
- Sell Your Home As Is By Owner: With the best FSBO websites, you can skip the 3% listing agent fee. Also, your home gets listed on the MLS for maximum exposure. But you have to handle all the negotiations and marketing yourself.
- List on a Cash Buyer Marketplace: This is the best way to sell a house as is. You get multiple cash offers and quick closing timelines from national and local cash home buyers. This can help you get top dollar when you sell your house as is for cash.
Selling a home as is by owner is like a DIY project. You have to market the property, host showings, and handle negotiations on your own. However, the easiest way to sell FSBO is to through a flat fee licensed broker assistance that can help you save thousands on commissions.
2. Make Strategic Minor Repairs
Properties that require fewer repairs sell for more. So, when selling a house that needs repairs, consider fixing squeaky hinges and leaky pipes to boost its appeal. It’s like fixing a wobbly table leg before dinner guests arrive – simple repairs that prevent bigger concerns from arising.
These small investments show care without major renovation costs. Repair items buyers notice during initial walkthroughs:
- Visible water stains
- Outdated fixtures and hardware
- Overgrown landscaping
- Worn or damaged flooring
- Peeling exterior paint
3. Get a Pre-listing Home Inspection
Hire a home inspector to identify any defects in your property. They’ll usually check for:
- Roof condition and structural integrity
- Pest damage and infestations
- HVAC system functionality
- Local building code compliance
- Foundation and drainage issues
Remember to include any defects found in your disclosure to prevent disputes with the buyer’s agent.
4. Disclose All Defects
Seller disclosure requirements vary by state, but most require sellers to outline the property’s features and defects. Common disclosure requirements across America include:
- Structural Flaws: Cracks in walls or ceilings, uneven floors, shifting, or other instabilities that compromise your home’s integrity.
- Environmental Hazards: Presence of harmful materials like asbestos, lead-based paint, radon gas, or underground storage tanks.
- Water Intrusion and Mold: History of water leaks in plumbing or the roof, drainage problems, flooding, or confirmed mold growth.
- Title Issues: Problems related to the title of the property that could affect home ownership, undisclosed liens, or competing claims.
Most states require sellers to maintain the property in the same condition from contract signing until closing. Buyers can withdraw without penalty for undisclosed defects, so check your state’s specific requirements.
5. Fill Out the As Is Real Estate Contract
You need to complete an “AS IS” residential purchase agreement to sell your house as is in. Contract forms vary by state, so ensure you use the correct version for your location and fill it out accurately, as home buyers will:
- Inspect the property thoroughly.
- Accept the property as-is, or request a concession.
- Terminate the contract.
👉 Selling Your Home As Is? List here to get top dollar!
Sell a Home As Is Near You
How Much Do I Lose Selling My Home As Is?
Around 30% to 50% of your home’s Fair Market Value, if you choose to sell as is to cash home buyers. The percentage varies depending on the condition of your home.
But if your home is in relatively good condition, list it on the MLS for max exposure and multiple offers. With a Flat Fee MLS listing service, your home will be on the MLS for just $249, and you save on the 3% listing agent fee. That’s enough to furnish your new home top-to-bottom!
» Houzeo Reviews: Find out why Houzeo is one of the best real estate platforms.
Pros and Cons of Selling My Home As Is
Selling an as-is home can be a good solution if your home needs significant repairs. However, here are some of the benefits and drawbacks you should consider before you go ahead
✅ Pros
- Zero Repair Costs: Water-damaged kitchen countertops, dripping faucets, or broken roofs aren’t your concern. The flipper or investor buying your house will handle such repairs.
- No Home Inspection Delays: When selling your home in poor condition, you can avoid delays caused by the inspector’s unavailability.
- Quick Home-Selling Timeline: When you skip the repairs, you can list your property for sale immediately. If you find a buyer with a mortgage preapproved for distressed properties, the closing process can be quicker.
❌ Cons
- Lower Sale Price: Companies that buy homes for cash offer only 30% to 70% of the property’s FMV. So, you will be leaving thousands of dollars on the table.
- Negative Buyer Assumptions: Buyers may assume that your property has serious defects, which may not necessarily be true. This assumption may negatively affect the offers your house attracts.
- Mortgage Challenges for Buyers: Mortgage lenders typically do not finance properties with structural or safety issues. Moreover, FHA, VA, and most conventional mortgages don’t finance fixer-uppers.
Can a Home Buyer Back Out of an As Is Contract in the US?
Yes, buyers can typically back out of an as-is contract during the inspection contingency period without penalty or losing their deposit. This period usually lasts 7-10 days across most states, though some states like Michigan have 5-10 day periods and Florida defaults to 15 days.
However, when selling a house as-is, sellers are generally not required to meet Minimum Property Requirements (MPRs) Sellers must still disclose known defects according to state disclosure laws, allowing buyers to make informed decisions even when purchasing as-is properties.
Should I Sell My House As Is?
Yes, selling your distressed house as is can save you money on repair costs and agent commissions, especially if you choose the best Flat Fee MLS services.
Most cash buyers may extend lowball cash offers of around 70% of your home’s FMV. But with cash buyer marketplaces, you may get 100% of your home’s FMV. The fact that you skip the 3% listing agent fee is a bonus.
