Selling a House As Is in the US? Get Top Dollar Without Renovations

7 mins read Sep 24, 2024
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Edited By

Carol Coutinho

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Editor
Edited By

Carol Coutinho

Editor, Houzeo
About

Carol C. is a versatile editor, expertly refining real estate content with precision and creativity. When not exploring market trends, she is immersed in the enthralling world of the theatre.

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Selling a house as is means you do not have to worry about inspections, repairs, and all associated negotiations. “As Is” homes typically sell for cash.

Over 30% of all homes in the US sell for cash. West Palm Beach topped this list with 50.4% of cash sales, followed by Miami at 37.6%. Moreover, 82% of millennials prefer “fixer-upper homes”, so there’s no need for any upgrades.

For sellers, this is fantastic news! You save an average of $25,000 otherwise spent on pre-sale improvements.

What Does Selling a House As Is Mean?

Selling a house as is refers to offloading a property in its existing condition without fixing any issues listed in the home inspection report.

When you sell as is, you must disclose every material defect affecting the house’s value in the seller disclosure form. A buyer can withdraw from the deal if you lie on the disclosure.

How to Sell a House As Is?

Follow these 5 steps to ensure a smooth home sale in the Sunshine State:

1. Choose How to Sell Your Home

You have 4 alternatives when selling your house as is:

  1. Sell a House As Is for Cash: Cash home buyers extend offers that are only 30% to 70% of your home’s Fair Market Value (FMV). On the other hand, iBuyers can pay as much as 80% of your home’s FMV. But, they have strict eligibility criteria for the homes they purchase.
  2. Sell Your Home As Is By Owner: Selling your house by owner is a smart DIY option. With a Flat Fee MLS service, you can list your property on the MLS without relying on a Realtor. This helps you avoid the 3% listing agent fee, saving you $12,090 on a $403,000 home!
  3. List on a Cash Buyer Marketplace: Cash buyer marketplaces showcase your home to multiple cash home buyers and home flippers. This increases your chances of selling your distressed property for a higher value.

2. Make Minor Repairs

The more repairs your home needs, the lower its value will be. Consider making small repairs, like fixing squeaky doorknobs or replacing a leaky pipe to boost the property’s value.

3. Conduct a Pre-listing Inspection

Hire a home inspector to identify any defects in your property. Including these issues in your disclosure can prevent disputes with the buyer’s agent. This also helps avoid surprises later on during the sale process.

4. Disclose All of Your Home’s Defects

The seller disclosure form has several questions that focus on the property’s features and defects. If you hide any defect, the buyer may withdraw from the deal. You may also be sued, lose money, and damage your reputation.

The law requires the seller to keep the property in the same condition from the contract date until closing. The buyer can legally withdraw from the sale without any further obligations if they discover a violation.

5. Fill Out the As Is Real Estate Contract

You need to fill out the “AS IS” Residential Contract for Sale and Purchase to sell your house as is. Ensure that you fill out the form accurately, as home shoppers will:

  • Inspect the property.
  • Negotiate repairs or treatments in future amendments, or
  • Terminate the contract.

Sell a Home As Is Near You

RegionState/CityHow to Sell My House As Is in My Area?
NortheastStatesSelling a House As Is in Connecticut | Selling a House As Is in Massachusetts | Selling a House As Is in New Hampshire | Selling a House As Is in New Jersey | Selling a House As Is in New York | Selling a House As Is in Pennsylvania | Selling a House As Is in Rhode Island | Selling a House As Is in Vermont
NortheastCitiesSelling a House As Is in Plymouth, MA | Selling a House As Is in Princeton, NJ | Selling a House As Is in Pittsburgh, PA | Selling a House As Is in York, PA
MidwestStatesSelling a House As Is in Illinois | Selling a House As Is in Indiana | Selling a House As Is in Iowa | Selling a House As Is in Kansas | Selling a House As Is in Michigan | Selling a House As Is in Minnesota | Selling a House As Is in Missouri | Selling a House As Is in Nebraska | Selling a House As Is in North Dakota | Selling a House As Is in Ohio | Selling a House As Is in South Dakota | Selling a House As Is in Wisconsin
MidwestCitiesSelling a House As Is in Omaha, NE | Selling a House As Is in Ellisville, MO | Selling a House As Is in St. Louis, MO | Selling a House As Is in Appleton, WI | Selling a House As Is in Green Bay, WI | Selling a House As Is in Milwaukee, WI | Selling a House As Is in Lake County, IL | Selling a House As Is in Naperville, IL | Selling a House As Is in Chicago, IL | Selling a House As Is in Schaumburg, IL | Selling a House As Is in Minneapolis, MN
SouthStatesSelling a House As Is in Alabama | Selling a House As Is in Arkansas | Selling a House As Is in Delaware | Selling a House As Is in Florida | Selling a House As Is in Georgia | Selling a House As Is in Kentucky | Selling a House As Is in Louisiana | Selling a House As Is in Maryland | Selling a House As Is in Mississippi | Selling a House As Is in North Carolina | Selling a House As Is in Oklahoma | Selling a House As Is in South Carolina | Selling a House As Is in Tennessee | Selling a House As Is in Texas | Selling a House As Is in Virginia | Selling a House As Is in Washington, D.C. | Selling a House As Is in West Virginia
SouthCitiesSelling a House As Is in Atlanta, GA | Selling a House As Is in Augusta, GA | Selling a House As Is in Lawrenceville, GA | Selling a House As Is in Valdosta, GA | Selling a House As Is in Charlotte, NC | Selling a House As Is in Dallas, TX | Selling a House As Is in McAllen, TX | Selling a House As Is in Irving, TX | Selling a House As Is in Richmond, VA | Selling a House As Is in Fort Worth, TX | Selling a House As Is in Montgomery, TX | Selling a House As Is in San Antonio, TX | Selling a House As Is in Houston, TX | Selling a House As Is in Sarasota, FL | Selling a House As Is in Bartlett, TN | Selling a House As Is in Chattanooga, TN | Selling a House As Is in Orlando, FL | Selling a House As Is in Baltimore, MD | Selling a House As Is in Tulsa, OK | Selling a House As Is in Jacksonville, FL | Selling a House As Is in Port Saint Lucie, FL | Selling a House As Is in St. Petersburg, FL | Selling a House As Is in Katy, TX | Selling a House As is in Longview, TX
WestStatesSelling a House As Is in Alaska | Selling a House As Is in Arizona | Selling a House As Is in California | Selling a House As Is in Colorado | Selling a House As Is in Hawaii | Selling a House As Is in Idaho | Selling a House As Is in Montana | Selling a House As Is in Nevada | Selling a House As Is in New Mexico | Selling a House As Is in Oregon | Selling a House As Is in Utah | Selling a House As Is in Washington | Selling a House As Is in Wyoming
WestCitiesSelling a House As Is in Antioch, CA | Selling a House As is in Bakersfield, CA | Selling a House As Is in Chino, CA | Selling a House As Is in Casitas Springs, CA | Selling a House As Is in Fountain Valley, CA | Selling a House As Is in Concord, CA | Selling a House As Is in Hayward, CA | | Selling a House As Is in Lake Forest, CA | Selling a House As Is in Lakewood, CA | Selling a House As Is in Newport Beach, CA | Selling a House As Is in Oak View, CA | Selling a House As Is in Santa Barbara, CA | Selling a House As Is in Oxnard, CA | Selling a House As Is in Ventura, CA | Selling a House As Is in Denver, CO | Selling a House As Is in Fresno, CA | Selling a House As Is in Citrus Heights, CA | Selling a House As Is in Las Vegas, NV | Selling a House As Is in Los Angeles, CA | Selling a House As Is in Phoenix, AZ | Selling a House As Is in Portland, OR | Selling a House As Is in Sacramento, CA | Selling a House As Is in San Diego, CA | Selling a House As Is in San Francisco, CA | Selling a House As Is in Santa Maria, CA | Selling a House As Is in Olympia, WA | Selling a House As Is in Seattle, WA | Selling a House As Is in Wenatchee, WA | Selling a House As Is in Blaine, WA | Selling a House As Is in Tacoma, WA | Selling a House As Is in Salt Lake City, UT | Selling a House As Is in Riverside, CA

How Much Do I Lose Selling My Home As Is?

If you’re selling your house as is to investors, you could lose around 30% to 50% of your home’s Fair Market Value. The exact amount depends on the condition of your home.

You can sell your property at or slightly below its FMV if it needs minimal repairs. Since fixer-upper homes are more popular than turnkey properties, you may get top dollar for your home on the MLS. If you opt for a Flat Fee MLS listing, you can even save on the 3% listing agent fee.

Imagine you own a $403,000 home in the Sunshine State. If you choose a 3% Realtor, you pay $12,090 to get your house on the MLS. But, if you list with a flat fee service like Houzeo, you only pay $749 and save $11,341!

Service ProviderFeeCommission DueSavings
Traditional Agent3%$12,291$0
Houzeo$399$749*$11,341
* Houzeo’s Bronze Plan costs $399 and has a $350 closing fee.

📢 NAR Settlement Saves Sellers Thousands in Commission

The NAR Settlement went into effect on August 17, 2024. Buyer agent commissions can no longer be offered on the MLS. This means sellers will save thousands! But it also means there’s a lot more compliance and litigation risks.

Here’s what this means for you:

  • Sellers Can Save Thousands in Commissions: You will likely pay much less than the traditional 3% buyer agent commission. That’s because buyer agent commissions will be negotiated twice: Once when buyers engage buyer agents, and again when sellers review offer contracts.
  • Seller Priority #1 Will Be Paperwork (to Mitigate Compliance & Litigation Risks): Buyer agents mitigate all types of risks. From seller disclosures, offer contracts, contingencies, inspections, repair requests, appraisal, and closing – buyer agents keep the paperwork tight. Their state licensing authorities, Realtor associations, and MLS’ audit paperwork compliance. Without buyer agents, sellers will have to learn and adapt. Or risk expensive litigation.
  • Negotiations Can Now Feel Like Haggling: Buyer agent commissions will now be part of offer contracts and buyer agency agreements. Buyers may ask sellers to include commissions in the form of seller concessions. That means home buyers and sellers alike will be negotiating commissions. Sellers will need expert licensed brokers to help them with these negotiations.
  • Buyer Agent Commissions Can Be Offered Offline: Buyer agent fees can still be offered outside of the MLS. They just cannot be advertised on the MLS.

Lara Shane Saved $24,000 With Houzeo, You Can Too!

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» Houzeo Reviews: Find out why Houzeo is one of the best cash buyer marketplaces.

Pros and Cons of Selling My Home As Is

✅ Pros

  • Zero Repair Costs: Water-damaged kitchen countertops, dripping faucets, or broken roofs aren’t your concern. The flipper or investor buying your US house will handle such repairs.
  • No Home Inspection-Related Delays: When selling your home in a poor condition, you can avoid delays caused by inspector 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

  • Below Fair Market Value: Cash home buyers 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 and VA loans and many conventional mortgages do not allow financing for fixer-uppers.

Can a Home Buyer Back Out of an As Is Contract in the US?

Yes, a buyer can back out of an as-is contract during the 15-day inspection period without penalty or losing their deposit. This allows them to withdraw from the deal if the property doesn’t meet their expectations.

However, it’s important to note that when selling a house as is, there’s generally no legal requirement to meet Minimum Property Requirements (MPRs). Sellers must disclose known defects, allowing the buyer to make an informed decision.

If the costs are under-reported, the seller may be responsible for repairs per Section 9 of the Standard Real Estate Contract.

Should I Sell My House As Is?

Yes, selling your distressed house as is can save you time and money, especially in the competitive market.

Investors may extend lowball cash offers of around 70% of your home’s FMV. However, a cash buyer marketplace like Houzeo may get you 100% of your home’s FMV. The fact that you skip the 3% listing agent fee is a bonus.

Frequently Asked Questions

Can I sell my home as is for cash?

Yes, you can sell your house as is for cash. You can list on cash buyer marketplaces like Houzeo and Sundae. You can also sell your home to cash buyers like HomeVestors or We Buy Houses.

How to sell a house as-is by owner?

To sell your home as is by owner in the US, you should:

1. Price your home competitively.
2. List on your local MLS.
3. List your property on the best FSBO sites.
4. Request cash offers for your home.

» How to Sell a House Without a Realtor: Discover ways to increase the offers your home gets when selling by owner in the US.

Should I sell my house as is or fix it up?

It depends on Real estate housing market. Currently, the number of cash sales is increasing in the Sunshine State with West Palm Beach having 50.4% of cash sales, followed by Miami with 37.6%. This indicates a growing trend of selling homes as-is.

Can I cancel an as is real estate contract?

Yes, you can terminate an as is real estate contract if the buyer fails to secure a pre-approved mortgage within the agreed timeframe. Additionally, you can also back out of the sale if the buyer fails to meet contingencies or breaches the contract.

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