As-Is Home Sale: What to Know to Attract Buyers

Consider a pre-listing inspection, but don’t overlook the risk

One way to get a jump on any unexpected deal breakers is to hire a home inspector before putting your house on the market. A pre-listing inspection, which costs an average of $341, reveals issues that you could easily resolve. This insight helps price your home more realistically and justifies a higher price if it’s in good condition. Providing a home inspection report could also make buyers more comfortable with an as-is home sale.

However, there’s always a risk that a home inspector could uncover problems that you knew nothing about, which you would then have to disclose.

Buyers may still try to negotiate the cost of repairs into a lower sales price, even with as-is home sales. If the offer is a good one, it might be worth spending a few dollars to fix a dripping faucet or make some other minor repair. If there are health and safety concerns, consider offering a credit at closing if you lack the funds to tackle the repairs yourself.

Financing deal-breakers

Although repairs might not be in your budget, your buyer will most likely need financing, and significant issues could slow down that process. Most lenders require that a house meets minimum property requirements to ensure it is safe to live in.

Minor defects like cracked windows or worn carpeting might not impede loan approval, but a faulty roof and other major problems could disqualify your home from government-backed FHA or VA loans. To widen the buyer pool, address serious issues before listing your house. These might include issues with the heating system, the roof and attic, or structural damage.

Alden says FHA or VA loans present more hurdles to get over. She calls the lender if the buyer is looking into them and inquires, “What are their rules and regulations so then we can make an educated decision if this could be a good fit or not?”

Steps to boosts your home’s price

While usually priced lower than updated houses whose owners are willing to make repairs, homes selling as is have greater value to buyers who will live there rather than investors who will make renovations and either flip or rent the property.

The worse shape your house is in, the bigger the discount you can expect to give. Alden says homes that need work could sell for 5% to 10% less than move-in ready homes. Depending on the severity of the damage, the price drop could be as high as 50%.

But with inventory remaining low and interest rates still high, as-is home sellers might still get an acceptable price if houses in their community are in high demand and short supply.

Although you may give up some value in exchange for a faster sale without the hassle of home improvements, here’s how a little effort can make all the difference in getting the best price.

Make your house shine

“Clean, clean, clean. People love a super clean house,” says Alden. If you’ve got the time, all it takes is a little elbow grease to make your house sparkle. Don’t forget to clean light fixtures and wipe down woodwork.

If you’re too busy or scrubbing floors isn’t your scene, hire a cleaning service at a national average cost of $40 to $50 per hour or $160 to $200 for a three-bedroom, 2,000-square-foot home. Deep cleaning or move-out cleaning adds another $175 to the total.

Alden also suggests painting the front door and giving your walls a fresh coat of paint like a neutral gray.

Curb appeal tips to add value

A terrific first impression increases value and attracts buyers even when selling your home as is. Buyers will pay 7% more for a house with great curb appeal than one with a neglected exterior, according to a recent HomeLight Top Agents Insights report. Agents surveyed suggest these budget-friendly projects to enhance curb appeal and add value:

• Basic yard care including mowing and fertilizing the lawn plus weed control costs about $340 and adds $2,173 to home value or ROI of 539%.
• Spread fresh mulch at approximately $275 for 3 cubic yards to increase your home’s worth by $1,749 with ROI of 536%.
• Install a new garage door costing about $1,200 for an additional $2,797 in value or ROI of 133%.

Get rid of the clutter

Decluttering is also important for a successful as-is home sale and will cost just a little time if you do it yourself. “Pack away anything that’s personal. Less is more,” says Alden. “You don’t want people focusing on your family photos. You want them to focus on the house,” she adds.

As an extra bonus, you’ll get a head start for moving day by throwing away or donating items you don’t need and packing up cherished possessions.

Let a top agent be your guide

Even if you’re opting for an as-is home sale, you’ll benefit from working with a top agent who knows the area and can factor in your property’s condition and current market trends to maximize profit.

HomeLight can put you in touch with real estate agents experienced in selling homes as is to create a competitive pricing and marketing strategy. They’ll also identify small repairs or cosmetic improvements to boost your price and speed up your as-is home sale.

Connect with a Top Agent

It takes just two minutes to match clients with the best real estate agents, who will contact you and guide you through the process. To connect with an agent, simply tell us a little bit about your property and how soon you’re looking to sell.

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Sell to cash buyers with Simple Sale

If you don’t have the financial resources to rectify major issues, selling to investors and cash buyers could be the best approach. Lenders may not approve mortgages for homes needing significant repairs. Buyers with money in the bank eliminate the need for financing or appraisals, thus decreasing closing time to just one to two weeks.

Cash buyers, such as house-buying companies, flippers, and investors, are more willing to overlook serious defects such as a leaking roof or foundation cracks. “They think they are going to get a better deal,” says Alden. A lower price will offset the cost of repairs and renovations before they can rent or resell the property.

If you want to sell your fixer-upper quickly without spending money on repairs or stressing out about showings, then connect with cash buyers via HomeLight’s Simple Sale platform.

Just answer a few simple questions about your home, its condition, and your selling timeline. You’ll get a competitive cash offer with no financing contingencies, hidden fees, or agent commissions. With Simple Sale, you’ll be able to sell your home in as little as 10 days without the inconvenience and expense of putting your home on the market.

Don’t give your home away when selling as is

Whether you’re undertaking an as-is home sale because of financial reasons or time constraints, knowing why buyers will make an offer for a house in its current condition and what items are important can help maximize your property’s value and lead to a faster sale. Just because you’re selling as is doesn’t mean you’ll have to give away your home in a fire sale. Whether working with a top agent or getting a cash offer, you can make an as-is home sale work for you.

Header Image Source: (Matthew Addington / Death to Stock)