When John inherited his late aunt’s house, he thought it would be straightforward to sell it and move on. However, as he walked through the creaky, outdated home, the reality of bringing the property up to market standards hit him. The roof was 20 years old, the kitchen hadn’t been updated since the 1970s, and several areas needed repair. After receiving quotes for the necessary renovations, John found himself overwhelmed. “I don’t have the time or the money to fix all of this,” he thought. That’s when his real estate agent suggested selling the house ‘as-is,’ meaning he wouldn’t have to make any repairs before listing it. But how much would he lose selling it that way? And was it worth the convenience?
For homeowners like John, s how much do you lose selling a house as is as-is can be tempting, especially when facing a long list of repairs or when time and money are tight. However, selling a home as-is typically means accepting a lower price than you would receive if the home were move-in ready. In this article, we’ll explore what it means to sell a house as-is, how much you might lose in the process, and the factors that influence how much you can expect to get when selling a property without making repairs.
What Does Selling a House As-Is Mean?
Selling a house as-is means that the seller is only willing to make repairs or improvements after losing. Essentially, the buyer agrees to purchase the home in its current condition and warts. This type of sale is common for homes that need significant repairs or updates, and it appeals to buyers looking for a fixer-upper or a discounted property.
In an as-is sale, the seller must still disclose any known issues with the property, such as roof damage, foundation problems, or mould. However, the seller won’t negotiate on repairs or credits after a home inspection, a common practice in a standard home sale.
How Much Do You Lose When Selling As-Is?
Most homeowners ask, “How much money will I lose by selling my house?” The answer depends on various factors, including the local real estate market, the home’s condition, and the type of buyer interested in the property.
2.1. The Typical Discount for an As-Is Sale
Homes sold as-is generally sell for less than similar homes in move-in-ready condition. According to a 2022 report by Zillow, homes sold as-is typically sell for 15% to 20% less than comparable fully updated homes. (Source: Zillow As-Is Sales Report, 2022)
For example, if the average price for a move-in-ready home in your area is $300,000, you might expect to sell your home for between $240,000 and $255,000 when selling as-is. That’s a potential loss of $45,000 to $60,000 from what you might have made if you’d invested in repairs and updates.
2.2. Condition of the Home
The home’s condition plays a significant role in determining how much you might lose when selling as-is. Homes that need only cosmetic updates, such as new paint or updated fixtures, may sell for close to market value. On the other hand, homes with significant structural or mechanical issues—like a leaky roof, a failing HVAC system, or outdated electrical wiring—may sell for far less.
HomeAdvisor says the average cost to repair a roof is between $5,000 and $10,000 while updating electrical systems can cost upwards of $15,000. Buyers will likely factor those costs into their offers if they choose not to make these repairs, leading to a lower sale price. (Source: HomeAdvisor Home Repair Costs, 2023)
2.3. Buyer Type
The type of buyer you attract when selling as-is will also impact how much you lose. Typically, there are three types of buyers interested how much do you lose selling a house as is
- Investors or flippers: These buyers are looking for properties they can purchase at a discount, renovate, and sell for a profit. They’re often likelier to make lowball offers to maximize their profit margins.
- Cash buyers: Many buyers who purchase as-is homes are paying in cash. According to ATTOM Data Solutions, 36% of all as-is home sales 2022 were to cash buyers. Cash buyers tend to offer lower prices because they aren’t relying on a mortgage, which gives them more leverage in negotiations. (Source: ATTOM Data Solutions Cash Sales Report, 2022)
- DIY buyers will take on a fixer-upper and make the repairs themselves. They may be more willing to offer a higher price than investors but will still expect a discount compared to move-in-ready homes.
Why Do Sellers Choose to Sell As-Is?
Despite the potential for losing money, many sellers opt to sell as-is because of the advantages it offers, particularly when time, convenience, and financial resources are limited. Here are some common reasons sellers choose this route:
3.1. Avoiding Expensive Repairs
One of the main reasons sellers choose to sell as-is is to avoid the cost and hassle of making repairs. For homeowners facing expensive fixes—such as foundation issues, plumbing problems, or extensive water damage—selling as-is can be a way to offload the property without sinking thousands of dollars into repairs.
A National Association of Realtors (NAR) report found that 73% of home sellers who sold their property as-is did so to avoid the financial burden of significant repairs. (Source: NAR Home Seller Report, 2023)
3.2. Speed of Sale
Homes sold as-is often attract buyers who are looking for a quick purchase. This can significantly appeal to sellers who need to move quickly, whether due to job relocation, financial distress, or an inherited property. According to Redfin, homes sold as-is tend to close 15% faster than those requiring repairs or updates before listing. (Source: Redfin Home Selling Report, 2023)
3.3. Inherited or Distressed Properties
When someone inherits a home, especially if it’s older or has yet to be well-maintained, they may need more time or resources to manage repairs. In these cases, selling the home as-is can be a convenient way to avoid property management responsibilities. Similarly, homeowners facing foreclosure or financial hardship may sell as-is to relieve themselves of the financial burden quickly.
How to Minimize Loss When Selling As-Is
If you decide to sell your house as-is, there are several strategies you can use to minimize how much money you lose in the process.
4.1. Get a Pre-Listing Inspection
While selling as-is means you won’t be making repairs, getting a pre-listing inspection is still a good idea. This can help you identify any significant issues that may turn buyers away. This information lets you price your home appropriately and avoid surprises later.
Additionally, transparency about the home’s condition can build trust with potential buyers, which may help you receive better offers.
4.2. Price It Right
Pricing your home accurately is critical when selling as-is. If you price it too high, buyers may assume you’re unwilling to negotiate or that there are hidden problems. According to Opendoor, homes priced correctly from the start sell faster and closer to the asking price than homes that are overpriced and linger on the market. (Source: Opendoor Pricing Insights, 2023)
Consider working with an experienced real estate agent who understands the as-is market and can help you set a competitive price.
4.3. Highlight the Positives
Even if your home needs repairs, it likely has some selling points that can appeal to buyers. Whether it’s a large lot, a desirable location, or original architectural details, highlighting these positives in your listing can help attract more interest.
Is Selling As-Is Worth It?
The decision to sell as-is ultimately depends on your unique situation. If your home needs significant repairs that you can’t afford to make or needs to be sold quickly, how much do you lose selling a house as is can be a practical solution, even if it means accepting a lower price.
The convenience of selling his inherited home as-is outweighed the potential loss for John. By working with an agent experienced in as-is sales, he could quickly find a cash buyer and avoid the stress and cost of repairs. While he accepted a lower offer than he might have received if the home had been updated, he could move on without the burden of managing a property that required extensive work.
Conclusion:
Selling a house as-is doesn’t necessarily mean you’ll take a huge financial hit, but it does mean adjusting your expectations for the final sale price. On average, sellers can expect to lose 15% to 20% compared to a move-in-ready home. Still, you can minimize the financial impact with the right strategy—such as pricing your home correctly and being upfront about its condition. For many homeowners, the convenience and speed of selling outweigh the potential loss, making it a viable option in certain circumstances.
