Preparing a home for sale costs both time and money. From Rogers Park to South Deering, Chicago, IL home sellers spent $14,163 on upgrades and repairs before listing their properties. And an average seller spends 2 weeks to a month making home improvements before listing.
In real estate, selling a house as is means listing it on the market without repairs or much preparation. Even if your home is in excellent condition, buyers typically bargain on the selling price based on the home inspection report. If you don’t want to spend time or money fixing your property, you should sell it as-is.
When you sell your house as is in Chicago, IL, you don’t have to shell out a dime on repairs. Additionally, you could attract cash buyers. You can get cash offers of up to 100% of the property’s fair market value.
🚀 4 Power Tips to Sell a House “As Is”
- Don’t Accept Low Ball Offers: Most buyers of “as is” homes will only offer you 30% to 70% of the market value of your property. Do not settle for such a lowball offer, it’ll cost you thousands.
- Don’t Expect iBuyers to Make Strong Offers: iBuyers have either shut down or have suffered massive losses. Our analysis suggests that iBuyers will offer much less than Fair Market Value (FMV) for your home in 2023 and 2024.
- Don’t Market to Only a Single Buyer: Marketing to just one buyer, like Opendoor or We Buy Houses, means there is little to no competition for your property. No competition means lowball offers.
- List on a Cash Marketplace: Cash marketplaces like Houzeo.com and Sundae are the best options to get multiple cash offers for your property. HomeVestors and We Buy Houses are also good options.
» List “As Is” with Houzeo.com: Get Maximum Cash Offers for Your Chicago, IL Home.
3 different types of cash home buyers will buy your home “as is” in Chicago, IL:
- Cash Marketplaces: Cash marketplaces provide the most exposure for your property, especially if they list your property on the MLS also. You can get up to 100% of the market value of your property. And you can list all types of properties.
- iBuyers: iBuyers provide instant offers using pricing algorithms. In 2023 and 2024, we expect iBuyers to typically offer 70% to 80% of the property’s market value. iBuyers typically also have high service charges and do not buy distressed properties.
- “We Buy Houses for Cash” Companies: These are typically local investors. They usually offer 50% to 70% of the property’s market value. They usually charge no service fee and buy properties in poor condition.
What Does it Mean to Sell a House As Is?
Selling a house “as is” means putting it up for sale in its existing condition without any upgrades or improvements. As an “as-is” home seller you won’t make any repairs. You won’t fix any issues even if they are found in the home inspection report.
Say, an Chicago, IL home inspector finds a defect that would cost $3,000 to fix. In a regular transaction, the seller fixes the issue or adjusts the final sale price by $3,000. But as an as-is home seller, you won’t make any repairs. The buyer has to accept the property as it is.
What Selling As Is Does Not Mean?
Selling as is does not mean you simply list your house, sell it, and walk away with a profit. As a seller, you need to be transparent about the property’s condition. You must disclose every material fact that affects the value of the property in the Illinois seller’s disclosure.
Can You Sell a Home As Is in Chicago, IL?
Yes, you can sell your house in Chicago, IL as is. And it’s easier than you think.
The Chicago, IL Residential Purchase Agreement by default is an “as-is” agreement. This means unless decided otherwise, the buyer accepts the property in its existing condition.
How to Sell a House As Is in Chicago, IL?
Selling a house “as is” in Chicago, IL is pretty similar to a regular home sale. Except, you need not sweat about significant repairs or hiring a Chicago, IL home staging company.
You should be transparent about all the defects present. Also, ensure you price your home correctly. These combined with a good marketing strategy and minor repairs can attract competitive cash offers.
Here are 5 pro tips to ensure you have a smooth as-is home sale in the Windy City:
1. Know Your Home Selling Options
You have the 3 options when it comes to selling your house as-is in Chicago, IL:
- BEST OPTION – List on a Cash Marketplace: Cash marketplaces offer maximum exposure to cash buyers – typically via the MLS. This includes exposure to iBuyers and “We Buy Houses for Cash” companies in Illinois. More competition means a higher sale price for you. You can attract offers as high as 100% of fair market value and you can list all types of properties. Houzeo.com and Sundae are the biggest cash marketplaces.
- Sell a House As Is for Cash in Chicago, IL: Companies that buy houses for cash make all-cash offers within 24 to 48 hours. However, traditional cash home-buying companies make lowball offers. If your house is in good condition, offer it to iBuyers. They make cash offers as high as 80% of the fair market value.
- Sell Your Home As Is By Owner: Selling a house in Chicago by owner is a DIY approach to listing and selling your property. In a by-owner home sale, you manage everything – from listing to closing – on your own. The best FSBO sites helps selling a house without a Realtor and save thousands in commissions. Alternatively, you can also work with an MLS listing service to list your home on the MLS.
Houzeo.com is the only cash marketplace that helps you list on MLS for maximum exposure. The biggest cash buyers, including Opendoor and HomeVestors, have made cash offers on Houzeo properties.
That being said, do not restrict yourself only to the above options. Some millennials have started buying old cheap homes via Instagram post-pandemic. So, actively market your property on social media platforms to attract these millennial home buyers.
- ✍️ Pro Tip: With Houzeo you can share your listing on all major social media platforms. List NOW!
2. Make Minor Repairs, if You Can
Make high return-on-investment repairs to enhance the look of your property. This may include fixing a squeaky doorknob, replacing a leaky washbasin pipe, etc. To further beautify your house for sale, deep clean, declutter, and add a fresh layer of paint.
3. Conduct a Pre-listing Inspection
Conduct a pre-listing inspection to save yourself from having to haggle with buyer agents on “unknown issues”. Pre-listing inspections will also help you avoid violating your Chicago, IL seller disclosure laws. Hire a professional Chicago, IL home inspector to determine the unknown defects present in your house.
Once you have the inspection report, make sure to mention the identified issues in the seller disclosures. You can also choose to share the inspection report with prospective home buyers.
4. Fill out the Seller Disclosures as Accurately as Possible
Chicago, IL seller disclosure statement has several sections related to property condition. Each section contains questions based on the property’s defects and features. Answer each question honestly and as comprehensively as possible. For homes built before 1978, you will need to fill out the lead-based paint disclosure.
5. Be Thorough with the Real Estate Contracts
The Chicago, IL Residential Purchase Agreement is by default an “As-Is” agreement. Paragraph 14 mentions the buyer accepts the property “AS IS, WHERE AS” unless you as the seller decide otherwise. This means, that unless you agree to make repairs, the buyer accepts the property in its existing condition.
Remember, just because you are selling a property as is in Chicago, IL, buyers are not precluded from:
- inspecting the property,
- negotiating repairs or treatments in future amendments, or
- terminating the contract during the option period.
» Illinois Real Estate Contract: Everything you need to know.
Why are Houses Sold As Is?
Homeowners under the following situations sell homes as is in Chicago, IL or elsewhere:
- You Cannot Afford to Make Any Repairs: Selling a home in Chicago, IL is expensive. Several costs like Illinois real estate commissions, settlement agent fees, notary fees, etc. are part of home selling fees. Fixing-up expenses combined with home staging would only burden you further.
- You Want to Relocate ASAP: You may want to unload a property and move for a job. An average home seller spends 2 weeks to a month making repairs, which can delay the relocation. In such a scenario, you can save about a month by saying no to repairs and selling as is in Chicago, IL.
- You are in a Financially Difficult Situation: People go through tough times and might need cash urgently. They can sell their homes to cash home-buying companies. They make lowball cash offers (30% to 70% of the fair market value) right away.
- You Want to Avoid the Stress of Selling an Inherited House: An inherited property distributed among multiple inheritors can cause several problems. It may even lead to a lawsuit if all inheritors do not agree to sell. To avoid future tussles, you may sell your inherited property in Chicago, IL as is and book your profits.
How Much Do You Lose Selling a House As Is?
Remember, most home buyers are going to finance their home purchase through a mortgage. If your property is in good condition and can be funded, you will sell it at fair market value or just below it.
But if your property needs significant repairs, and you’re selling “as is”, you will limit your buyer pool to investors only. Investors typically will only pay between 30% to 70% of the property’s fair market value. So be prepared to sell for tens of thousands of dollars less than the fair market value.
» How Much Do You Lose Selling a House As Is: Everything you need to know.
Should I Sell My House As Is in Chicago, IL?
We do not recommend selling your house as is in Chicago, IL because “fixer-upper homes” sell for 45% less than turnkey homes. However, if you have no other option, weigh the pros and cons of selling a home as is in Chicago, IL beforehand.
Pros of Selling a House As Is in Chicago, IL
- No Haggling Over Repairs: Water-damaged kitchen countertops, dripping faucets, or broken roofs – repairs are not your concern. The flipper or investor buying your Chicago, IL house as-is will take care of such repairs.
- No Inspection Contingency: On average, home sellers shell out $14,000 in seller concessions related to home inspection. In an as-is sale, you can pre-set a discount and tell buyers you are unwilling to negotiate further.
- Hit the Market Quickly & Close the Sale Fast: Since you save time in repairs, you can list your property directly for sale. You can close the sale relatively sooner if you find a buyer who has a mortgage preapproved for distressed properties.
» Get Listed in 24 Hours: Houzeo’s Rush Listing will get you on the MLS in one business day.
Cons of Selling a House As Is in Chicago, IL
- You Will Get Less than the Fair Market Value: As stated earlier, you will most likely sell to a cash buyer. Cash home buyers offer only 50% to 70% (or even less) of the fair market value.
- Buyers May Make Negative Assumptions About Your Property: Buyers assume your property has some serious defects, which may not necessarily be true. This negatively affects the offers your house attracts.
- Buyers May Face Challenges in Securing Mortgages: Illinois mortgage lenders typically do not finance properties with structural or safety issues. FHA loans, VA loans, and many conventional mortgages usually do not allow financing for fixer-uppers.
💡 Fact: The FHA 203(k) loan enables home buyers to finance homes that need repair. Buyers are approved to make only specific types of improvements with an FHA 203(k) loan.
The Bottom Line
You can save a few thousand dollars by selling a house as is in Chicago, IL, but we do not recommend it. Because most home sellers have to settle for discounted offers from cash buyers. But, if you have made up your mind about selling your home as is in Chicago, IL, list it on the MLS.
An MLS listing via Houzeo will give your as-is home maximum exposure. Major cash buyers, including Opendoor and Homevestors, have submitted offers on Houzeo properties. Here’s how to get a For Sale By Owner listing on MLS in Illinois with Houzeo.
Eager to Know How Houzeo Works?
We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner websites in the U.S.
What is Houzeo?
An overview of what the platform is all about
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Frequently Asked Questions (FAQs)
Can I sell my house as is Chicago?
Yes, you can sell your house in Chicago as is. You need to fill out the Multi-board residential Real Estate Contract for an as-is home sale in Chicago, IL
How to sell a house as is for cash?
You can opt for companies that buy houses for cash or iBuyers to sell your house as-is for cash.
» Selling a House As Is in Illinois: Learn how as-is home sale works in ILChicago Illinois Selling a House As Is