Selling a House As-Is in California

Which types of homes are sold as-is?

Homes sold as-is often need some work or are cosmetically outdated. It’s not a label you’re likely to put on a listing in pristine, move-in-ready condition.

As-is sales often attract investors searching for their next flip or buyers seeking a bargain, perhaps on a home in a great location with lots of potential.

Hernandez reports California homes selling in distressed, as-is condition have been typically loved and well-worn by one family for many decades. These homes are usually built in the 1970s or later and owned by older baby boomers.

“They’ve not necessarily grown out of the home,” says Hernandez, who has 16 years of experience in the market, “but, they don’t have the resources to keep up with it.” The result is years of deferred maintenance.

What problems do you have to disclose in California?

Selling a house as-is in California doesn’t mean sweeping known problems about the house under the rug.

A good time to fill out the California Association of Realtors Real Estate Transfer Disclosure Statement is prior to listing your home or requesting an offer so that you know it’s taken care of.

According to the document, the disclosure of the condition of the property is “in compliance with Section 1102 of the civil code.” The seller also certifies by the close of escrow the property will be in compliance with the State Fire Marshal’s standards for operable smoke detectors and the Health & Safety Codes requiring water heaters to be strapped in place.

The form will walk you through documenting what you know about the features of the home, from the TV antenna to the number of remote controls for the garage door and the quick-release mechanisms on bedroom windows.

You’ll also be prompted to fill out information about malfunctioning electrical systems, plumbing systems, or other structural components. The form specifically asks the seller to disclose the presence of the following:

• Hazardous materials such as asbestos
• Features shared with neighbors, such as common driveways
• Encroachments/easements
• Rooms or construction completed without a permit or non-compliant with building codes
• Flooding or drainage problems
• Compacted or other fill
• Settling issues such as slippage or sliding
• Damage from fire, floods, earthquake or landslide
• Zoning violations or nonconforming uses
• Neighborhood noise problems
• Deed restrictions
• Homeowner’s association authority over the property
• Any lawsuits by or against the seller that may affect the property

California sellers must also complete an additional disclosure form, the Natural Hazard Disclosure Statement, which shows whether the home is in zones predisposed to earthquakes, flooding, fire, or wildland risks.

The Golden State also requires sellers to let a buyer know that information about the location of registered sex offenders is available from local law enforcement agencies and on the state-operated website.

California’s disclosure rules are complex. So, the California Association of Realtors created a comprehensive sales disclosure chart. No matter what method you choose to sell your home, it’s required to make these disclosures to the best of your ability.

Hernandez says all sellers must complete the Natural Hazards Disclosure and Transfer Disclosure Statement.

However, California does allow some exceptions from additional buyer requests for disclosure about certain items. Sellers are exempt from responding to some disclosures if they haven’t lived in the home and/or if they are “transfers by a fiduciary in the administration of a decedent’s estate, a guardianship, conservatorship, or trust except where the trustee is a former owner of the property.”

Review your options to sell as-is in California

The main options to sell a house as-is include:

List as-is with the help of a real estate agent

A great real estate agent will provide assistance throughout the process of listing and selling a home as-is. An agent gives simple presentation tips to improve marketing, helps to set an appropriate price that reflects the home’s condition, and works to find a buyer willing and eager to buy your home in its current state.

Because he has extensive experience dealing with non-traditional properties, Hernandez works with the owners to maximize the home’s assets — and potential profit — with minimum effort and investment.

“We’re not showing it as a distressed home,” Hernandez says. “We’re marketing a previously loved property that needs a little bit more TLC from the next homeowner.”

After the home is decluttered and emptied, Hernandez usually provides a punch list of suggested small improvements that make the home appear less dated or worn.

For example, he commonly brightens the interior by taking down dramatic, big 1970s/1980s-era valances and window coverings. If the structure seems sound, a coat of paint and new carpet can help freshen up the space.

Not only do those relatively inexpensive updates attract buyers, but they also improve the property’s chances of being eligible for financing.

Sell directly to a cash buyer

Someone needing to sell their home as-is can also work directly with a property investor or house-buying company in lieu of listing on the open market, where it may be difficult to get an offer from a limited buyer pool.

We Buy Houses operations buy as-is at a discounted rate and generally seek out homes in need of significant repairs. These companies can help sellers cash out quickly, and many will cover a seller’s closing costs.

The level of integrity and customer service you experience can vary, even within an established house-buying company that strives to maintain consistent business standards. This is because many We Buy Houses companies are franchises and often use independent investors or local wholesaling outfits. Your experience greatly depends on the character of the person or group making the offer.

If you are considering a cash offer, vet the company thoroughly. Check reviews, read testimonials, and research its presence and performance in the market. And, of course, read the buying agreement carefully before signing.

Steps to list as-is with the help of a real estate agent

Find an agent willing to list the home as-is

Your choice of real estate agent always matters, but especially when selling a property as-is. It’s important to find the right match. You’re looking for an agent who doesn’t shy away from listings that need a little TLC and maybe has a strong network of investor connections.

Your agent should also be willing to go the extra mile on marketing. Considering 77% of buyers won’t consider purchasing a home that isn’t move-in ready, an as-is sale likely has a reduced buyer pool from the start.

In looking for an agent to sell a distressed, as-is property, Hernandez recommends seeking a Realtor who has experience with maintenance deferred listings and a well-honed list of auxiliary service providers.

For example, Hernandez recently worked with a client who inherited a home when her mother passed away. The client couldn’t bear to part with her mother’s possessions or the property for three years. By the time she decided to sell, the client was in her 70s and had significant physical limitations.

Hernandez called upon his network of professionals to help the client sort through the home’s contents and decide which items to keep, donate, consign, or sell in an estate sale.

“With an as-is sale, it’s important to work with an agent who understands the market, can maximize the sales price with some small fixes, and has the resources to help clients with what they need done,” explains Hernandez.

Beyond just having an idea of what’s best for the seller’s particular situation, Hernandez says that a great as-is agent should be able to provide examples of properties they’ve successfully sold for other homeowners in a similar situation.

Consider a pre-listing inspection

A pre-listing home inspection is the same as a standard home inspection except that the seller pays for it before listing their home on the market. It may sound like a counterintuitive step for an as-is sale, but getting the inspection results upfront can illuminate any issues that could impact the value of the home and inform an accurate pricing strategy. If a buyer requests further deductions to the price based on their own inspection, you may be able to point to how the estimated cost of certain repairs was already baked into the list price.

Hernandez does not recommend the seller pay for a pre-listing inspection.

“We already know the property is distressed, and the sellers are going to disclose anything they know about,” says Hernandez.

So, there’s no need for the homeowners to further probe the property’s condition. “Buyers can do their own inspection;” says Hernandez, “but, the sellers still aren’t going to fix anything.”

Price to reflect as-is condition

The median sale price for homes in California hit $806,490 in February 2024, a 9.7% increase over the same period last year.

Hernandez says that homes sold as-is in the area typically sell for 20%–30% less than regular listings. Some of the top factors that impact the value of an as-is listing in California are clear signs of deferred maintenance, including:

• Outdated kitchens and baths
• An old or damaged roof
• Foundation problems
• Old wooden windows, usually single pane with chipping paint
• Dilapidated flooring
• Overgrown yard

You can start with a free estimate from HomeLight’s Home Value Estimator (HVE).

Our HVE combs public data, including tax records and assessments, and pulls recent sales records for other properties in your neighborhood. Using a short questionnaire, we also factor in specifics about your home such as the property type and described condition. Input your address, and we’ll provide you with a preliminary home value estimate in under two minutes.

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Do ever-so-light preparations

Even for as-is home listings in California, Hernandez typically recommends sellers complete the following:

• Declutter and/or vacate: Empty the house of all possessions, so you can see the condition of every square inch of the space and make simple, inexpensive improvements.
• Clean: Removing dust, spider webs, and dirt not only improves appearance but also helps get things ready for work to be done by the seller or buyer.
• Paint: If the house is structurally sound, a fresh coat of paint makes a great impression on buyers and their lenders.
• Carpet: Rip out stinky, stained old carpet. If possible, replace with new cost-effective floor coverings, which can make the house not only more attractive but habitable.
• Landscape: Buyers can’t appreciate the architecture of your house if they can’t see it or get to the door. Trim overgrown plants, mow the yard, and invest in some seasonal color, either planted in the ground or displayed in a few well-placed pots.
• Address simple things that involve the senses: While most buyers begin their property search online, their in-person experience can seal the deal or break it. So, any cost-effective improvements to heighten the way the property looks, smells, or feels are a good investment.

“You’re going to be moving anyway, so first declutter and clean,” notes Hernandez. If the property doesn’t need a big overhaul, Hernandez says his top three priorities are landscaping, painting, and carpeting.

“I want to make sure we’re getting a return on investment,” Hernandez says. “Can I get $1.25 or more for every $1 I put in?”

Besides generating the biggest bang for the buck, Hernandez says, “If the home is not in bad shape structurally and the sellers invest in minimal yard work, new paint, and carpet, then buyers can get financing and live in the home while they fix it up.”

Photograph to show potential

Your home listing warrants professional photography no matter what type of condition the property is in. A professional photographer will take steps to shoot each room from the best angle, ensure optimal interior and natural lighting, and edit for the ideal brightness and exposure.

A high-quality camera with a wide-angle lens is also essential to showcasing entire rooms rather than half or three-quarters of what’s there. For these reasons and more, professionally photographed homes can sell up to 32% faster than houses marketed without professional photos.

Your real estate agent will almost always arrange for professional photos as part of the listing process.

Highlight the surrounding area

A home’s location will be important to buyers seeking out a home with potential. Mention in your as-is listing if your home is close to any of the following:

Include as-is in the listing

Unless you explicitly mention that your house is being sold as-is, buyers will have no idea of your intentions with the listing. Other common descriptors mentioned in as-is listings in California include: priced to sell, total fixer, in desperate need of repairs, bring your handyman or contractor, cash only, trust sale, and even, seller will not consider doing any repairs.

To balance the focus on as-is condition, work with your agent to craft a property description that highlights the best features of the home.

That description might include historic architectural details such as finials, stained glass, transoms, or pocket doors, as well as kitschy components such as terrazzo floors, mirrored bars, retro color schemes, Formica countertops, or a sunken living room.

Understand buyers may still negotiate

Listing as-is provides no guarantee that buyers won’t try to negotiate savings on their purchase, even on an asking price you felt was already reduced to reflect the home’s condition. One of the best defenses you can have is an agent who takes a hard stance to prevent a deal from going south for the seller.

“Particularly if the buyer is coming in with cash at the highest price point,” Hernandez says, “I need to protect my seller with regard to terms.”

Often, that means advocating for the removal of inspection contingencies. “In California, when buyers agree to waive the inspection contingency, they cannot back out of the deal no matter whether they later find an issue with the property or in regard to something such as the homeowner’s association,” Hernandez says.

Be aware of minimum property standards for certain loans

When you place your home on the market, it’s hard to predict if your top offer will come from a cash buyer or a buyer pre-qualified for a home loan.

But if you do end up working with a financed buyer, be aware that different mortgage types (such as conventional loans or government-backed FHA, USDA, or VA loans) have different minimum property standards. These are standards related to the overall condition of a property, which will play a role in the willingness and/or ability of a lender to finance a buyer’s loan.

Before properties can be financed, their value and condition are typically examined by a state-licensed, independent appraiser contracted by the buyer’s mortgage company.

If you’re unsure whether your home will meet appraisal requirements, you can start by taking a look at the FHA minimum property standards. If your house complies with FHA, then it complies with most other lenders’ requirements.

Prioritize a cash offer if you receive one

On occasion, conventional lenders may even finance a fixer-upper property sold as-is, and it’s not impossible to finance a fixer-upper with an FHA loan. However, if you’re selling a house as-is — especially one that needs heftier repairs — you may want to consider accepting a cash offer if you receive one. Cash eliminates the lender-ordered appraisal as well as the time it takes to close on the buyer’s loan, creating a faster and clearer path to settlement.

“The biggest advantage of a cash sale is going to be the quick close,” Hernandez says.

With a cash sale, the sellers usually have their funds within 10 days of closing. If financing is involved, the turnaround is typically 30 days.

So, if they have the choice between a lower cash offer or a higher financed bid, Hernandez asks his clients: What’s the cost of getting financing for the 20-day difference? What does that mean to you in terms of time, interest, and equity?

Pros of listing a home as-is: 

• Save time and money on prep work
• Possibility of reducing negotiations from the inspection
• Solution for out-of-state owners and inherited homes

Cons of listing a home as-is:

• Limited buyer pool
• Expect lower offers
• Negotiations and repairs aren’t always off the table

Steps to sell directly to a cash buyer

Now that we’ve covered the general process of listing a home as-is, let’s discuss the alternative of working with an investor. While the process varies from business to business, the steps to selling your home to a house-buying company typically go something like this:

1. Decision: A homeowner decides a traditional listing isn’t for them. Perhaps their house needs a lot of work, or they do not want to host any showings or open houses. They’re concerned about finding a buyer willing to purchase their home as-is in its current state.
2. Contact: A seller contacts a company that buys homes in their area and provides some basic information about their home.
3. Preliminary offer: At this stage, some housebuying companies will provide a preliminary offer that is subject to change after a house assessment.
4. Assessment: The company schedules a walkthrough of the property to evaluate its condition, usually within 24 to 48 hours.
5. Firm offer: The company makes a firm offer (typically within 24 hours, sometimes on-site after the walkthrough), which you can accept or decline. Most of these companies will not negotiate on price, so the offer is a take-it-or-leave-it scenario.
6. Closing: If you accept the offer, you and the company will each sign the contract, and closing will begin. Some companies offer a large deposit or moving cost assistance, and a few may even pay for the home upfront.
7. Payment: The seller receives payment quickly, typically within seven days to a few weeks. This can vary by company, and sellers who work with a house-buying company often enjoy flexibility in selecting a move-out date that works for them.

If you aren’t sure where to get a cash offer, consider Simple Sale, a solution from HomeLight. With Simple Sale, you tell us a bit about your home, such as whether it’s a single-family or condo and how much work it needs. From there, we’ll provide you with a full cash offer to buy your home in as few as 48 hours.

Skip repairs

No need to call the roof inspector or drain your savings to replace the HVAC. HomeLight will provide an offer for homes in almost any condition.

Sell when it’s convenient

Want to get out right away? Or need a little more time to pack? Either way, we’re flexible. Pick a move-out date that works for your schedule within 30 days of closing.

Close with certainty

Cash buyers don’t need a lender’s involvement to purchase a home, meaning they can move nimbly and quickly compared to someone who needs financing. With Simple Sale, you can close in as little as 10 days, compared to the 30–60 days it typically takes to close with a financed buyer.

Curious to know more about the Simple Sale experience? Hear it firsthand from one of our valued clients in the video below.

Additional We Buy Houses companies in California

Below, we’ve compiled a list of some of the leading companies that purchase homes as-is for cash in California and information about each one:

Pros of selling as-is to an investor:

• Save money on home preparations.
• Sell fast — receive an offer in as little as a few days, and close as quickly as one to two weeks later.
• Skip repairs. Most house-buying companies purchase properties in as-is condition, even those that need major repairs.
• No staging. No repeated showings. No open houses.
• Arrange for a flexible move-out date.

Cons of selling as-is to an investor:

• Offers are likely to be much lower. Investors typically pay 70% of what they estimate to be the home’s after-repair value.
• Sellers will have little room to negotiate. Most cash buyer offers are going to be “take it or leave it.”
• Although many home-buying companies are legitimate, some are not. It’s always a good idea to be vigilant about possible scams.

How much will you make from an as-is home sale?

There is no simple equation for calculating how much you’ll net from an as-is sale. If you list on the market with an agent, you’ll need to account for the cost of agent commissions (around 5.8% on average) and other closing costs, such as title fees and taxes, but are likely to field higher offers from buyers and see more competition for the home.

In general, as-is, distressed listings garner 20% to 30% less than updated homes. Most California homes from the 1970s and 1980s don’t have the open-concept floor plan popular today, so buyers expect to invest a lot of time and money in updating.

However, due to the current market’s low inventory, “There are buyers willing to take those homes with just updated paint rather than a complete remodel,” says Hernandez. So, it’s possible to increase the value by 5% by improving those cosmetic items alone.

Different types of investors and house-buying companies also offer varying amounts for homes, largely dependent on their exit strategy. While fix ‘n’ flip investors usually pay around 70% of the home’s after-repair value, buy-and-hold investors who plan to rent out your property may be able to pay more. In addition, investors are often willing to cover a seller’s closing costs, which can add up to around 1%–3% of the sale price. HomeLight’s net proceeds calculator can be helpful for running through some possible selling scenarios and estimating your take-home pay.

Ready to sell your house in California?

While every home sale is different, you should now be familiar with the general process of selling a house as-is in California. Now, you can begin to weigh which method will work best for you.

Hernandez previously worked with an older gentleman who was moving to Arizona. After the client cleaned out his condo, Hernandez explained three key selling tips:

• In its current condition, the home would probably sell for $425,000.
• By investing $2,000 to $4,000 in new carpet and paint for the 1,300-square-foot space, the condo could sell for $450,000.
• With a $75,000 remodel including paint, carpeting, the removal of a wall, and an updated kitchen and bathroom, the property would probably sell for $550,000.

Hernandez offered to front some funds for repayment with no interest at closing, have his project manager oversee the work, and allow the client to choose the contractors. But, despite the fact he could realize an additional $23,000 to $50,000 with a little more time and effort, the client chose to sell the property with no changes.

“And that’s OK because it’s really about the sellers and what they want to accomplish,” says Hernandez. “Do sellers want or need to get out quickly? Do they want their money quickly but also they need to spend more time in the home? Do they want to maximize the sales price? A well-rounded agent offers the seller all the options.”

Whether you choose to list as-is with a real estate agent or work with a direct home buyer, a home doesn’t have to be in perfect condition to sell — so long as you provide disclosures as necessary, set the right price, and know what to expect going in. Whenever you’re ready to take the next step, HomeLight would be happy to assist with your real estate needs. Connect with a top agent near you or get started with a cash offer from Simple Sale.

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