Seeing a home listed “as-is” will excite some buyers and raise a red flag for others. If you’re thinking about selling your home as-is, you may be imagining a quick sale without having to make any repairs. And you may be right, but there’s a lot to consider when you put your home up for sale, and selling as-is has some potential drawbacks, as well as some tempting advantages.
Pros of Selling a Home As-Is
- Sell it fast: One of the biggest reasons for homeowners to list their homes as-is is to save time. Homes listed as-is are typically priced below market value, and as a result, they tend to sell quickly. If you’re in a hurry to sell, there’s a good chance that selling as-is will save you some time.
- Avoid repairs: If you’re selling a fixer-upper, you may not have the time or inclination to make the necessary repairs. You may also not want to deal with the stress, or you may not be able to afford the repairs. In any case, many homes are listed as-is because the owner would rather leave any repairs that may be needed to the next owner.
- Attract eager buyers: Not every buyer is willing to invest in a home that needs work, but listing your house for sale as-is will catch the eye of certain buyers. That includes those who are looking to fix up the property and flip it for a profit, as well as those who simply enjoy a DIY project, or who don’t mind doing some work if it means spending less on a home.
- Match the market: If you live in a city where real estate prices are on the rise, then listing your home as-is can be a great way to attract buyers (especially first-time homeowners) who may not be able to afford the market value of the average house in your neighborhood.
Cons of Selling a Home As-Is
- Lower sale price: One significant drawback of selling your home as-is is that you won’t get as much for it as you would if you made the necessary repairs. Even if your home doesn’t need major renovations, the simple fact that it has “as-is” as part of the listing means that it will likely sell for less.
- Limited buyers: While some buyers are attracted to homes that need work, others will be immediately turned off. Some buyers may assume that, because your house is listed as-is, it must have hidden flaws. Others simply want a move-in ready home that doesn’t need any work.
- Full disclosure: While listing a home as-is does free you from certain responsibilities when it comes to making repairs, it does not free you from the obligation to list your home accurately. You still need to disclose any defects, flaws or repairs that need to be made; and potential buyers may still have the home inspected to confirm its value before committing to buy.
- Haggling: If you’re listing your home as-is, you’d better be prepared to negotiate. A lot of buyers will see that listing as permission to submit a lowball offer, and many will negotiate harder because they sense that you are eager to sell. Take that into account when listing your house, and don’t be surprised if you get some offers that are well below your asking price.