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How Much Do You Lose by Actually Selling a House As-Is?

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How Much Do You Lose by Actually Selling a House As-Is?

The moment has come for you to sell your house; maybe you need the money now, or maybe you have to move for work.

However, you soon discover that it isn’t move-in ready—there are water stains on the ceiling, the paint has faded, and the wallpaper is flaking. You don’t have the extra time or money to do these repairs. Then someone informed you that if you sell as-is, you can avoid all of that.

You could be asking yourself now, how selling a house as-is will effect your finances and how much money you can lose?

Pros of Selling Your Home As-Is:

Time-Saving:
It is probably one of the best benefits for a homeowner to sell house as-is. When selling a house, one would want to make it presentable.

For sure, the presentation of a house would most obviously be repainting and landscaping tasks. When selling a house as-is, the homeowner can entirely skip this step and put the house on sale immediately to get a quicker transaction in the real estate market.

This can be especially beneficial in the current market conditions where speed is essential.

Free from Stress:
It can be a stressful and expensive process to identify the necessary repairs, find contractors, and supervise the work. Selling house as-is eliminates these hassles in the home improvement process in not only an emotional sense but a logistical sense as well, especially in a competitive real estate market.

No Risk or Cost for Renovations and Repairs:
Selling your home as-is is free from many financial risks because of the renovation works. There will be no worrying about a small repair that may lead to big damage, nor worrying if the money put into repairs will be recovered upon selling the house.

Depending on the local real estate market conditions, real estate agents might recommend for a seller to approach this condition.

Cons of Selling Your Home As-Is:

Fewer Offers:
Many potential buyers want a move-in ready home. The more “projecty” your home is, the fewer offers you can expect. This is especially true for most potential buyers who need financing, as many lenders are not willing to fund a loan on a property in poor condition. Some potential buyers, such as real estate investors, could be OK with an as-is sale, but many are not.

Sell Below Market Value:
In an as-is sale, potential buyers will expect to receive a lower final sale price, for they will be the ones burdened with repairs and the dangers that may come with them. It therefore almost always results in a final sale price lower than the market value of comparable homes in better condition. Real estate agents can help set realistic expectations of what one could expect to get in an as-is sale, considering current market conditions.

Factors That Impact Offer Price in As-Is Home Sales:

Type of Buyer:
The type of buyer you are able to attract to your property has a potential impact on offer price in an asis sale. Typical buyers who are looking to stake a residence may get freaked out by the necessary repairs; an investor or house flipper would look at it as an opportunity.

Investors often pay in cash and close quickly, but their offers will always account for the cost of such needed repairs, plus their required profit margin. You can turn to a real estate agent directory to find real estate agents that focus on these sorts of sales.

The condition of your home directly affects the chasm between the market value and the actual final sale price in an asis sale.

Homes needing minor repairs will adjust less in price than those that require a high level of renovation work. Real estate agents can offer the best ideas about how much these elements will impact your sale in the current market conditions.

Property Location:

Location is also critical. If you are in a hot seller’s market, which is currently defining the state of the local real estate market, you might not have to be so concerned about chopping the value when selling as-is, as that high demand could bring the offers in closer to market value even without the repairs. Local real estate trends will come in big here to weigh how much you stand to lose.

Market Conditions:

Such things as whether it is a buyer’s or seller’s market condition in the local real estate market will further impact what you will finally sell your property for in an as-is sale. If you are selling a house in a seller’s market—when there are many potential buyers looking to purchase homes—using the asis sale condition will attract many offers on your property.

Truth and transparency are of great importance when selling a house as-is. Being simply straightforward regarding the problems you are aware of can ensure that you never run into any legal trouble along the process.

A pre-listing inspection will once again be valuable in identifying things you might not know of, such that you can decide whether or not to disclose them before listing. A real estate agent will guide you accordingly to meet all legal requirements.

Real Estate Agent:

As we’ve covered, a real estate agent can help you through the selling process even if you are selling house as-is. They might even ask you to do some minor repairs to help push the final sale price up, or they may even help you stage your home.

Still, there are costs to consider, like real estate agent commissions and closing fees. So it’s crucial that the selection of a real estate agent directory staffs come with premier, seasoned real estate agents who know the ins and outs of asis sales in the current market conditions.

Cash Buyers:

One of the easiest ways to sell a house as-is is through cash buyers, such as real estate investors or home flippers. These potential buyers are used to purchasing properties in any condition and are able to close quickly, very often without inspections or financing contingencies.

Companies such as Rocket Homes Real Estate offer platforms for you to connect with leading cash buyers interested in as-is sale properties.

So, How Much Will it Cost to Sell a House As-Is?

Selling a house as-is will typically involve fewer upfront costs since you’re bypassing the repair and renovation stages. You may still incur closing costs and other expenses, including transfer taxes and property taxes.

While you might sell for less than the house’s potential market value, you save on repair costs and reduce the time to sell house. All said and done, trends in the local real estate scenario, coupled with the advice of real estate agents in the business, will go a long way in helping you come to a conclusion on the most efficient way out of your situation.

Conclusion: Is Selling “As-Is” Worth It?

The amount you may lose while selling house as-is determines the condition of your house, the market, and the category of potential buyers you may land.

Yes, you might leave some money on the table if you sell house as-is, but the convenience and time saved can outweigh the financial loss. In the end, selling house as-is will best depend on your financial situation, time pressures, and your tolerance for dealing with a rehabilitation.

Consultation with real estate agents really experienced in asis sales can give you the answer.

We help homeowners sell off their houses super fast and in as-is condition at a good cash offer. With our local buyer networks understanding your local real estate market and coming with competitive prices, you are able to sell house doubtlessly without repairs, inspections, or long negotiations. Get started today by completing our form.

Besides, for anybody interested in having more real estate investment, our company separate legal entity ensures your transaction is done with all the professionalism and legality binding to it. Not to forget, our app store service mark, which ensures you get the best of tools and services within the real estate land.

Whether you are checking out Rocket Homes Real Estate or looking for personalized real estate personal finance options within real estate, we have your back.

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Rick Premji
About The Author

Rick Premji

Rick has been a financial advisor since 2014 and has been in Real Estate since 2012. He got into real estate in order to help others and have financial independence for his family.


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