When selling your house as-is, how much you can sell it for will depend on factors like the home’s current condition, the real estate market, interest rates, comparable properties, and supply and demand.
Although many factors can impact the price, selling as-is comes with some key advantages. For example, you won’t need to make costly repairs or deal with listing and showing your home. And, if you sell to a cash home buyer, you can also avoid realtor fees and commissions.
Because as-is houses tend to have issues that need fixing, they don’t often meet the requirements for certain loans, like VA or FHA loans. Even if a buyer is open to the condition of your home and willing to make necessary repairs, the inability to qualify for these loans can deter many traditional buyers.
However, when you sell your house as-is, you open the door for real estate investors and cash home buyers like us who can make offers and close quickly. If you’re thinking about selling as-is, contact us today to receive a fair, no pressure cash offer.
In this post, we weigh the pros and cons of selling as-is, explain exactly how we calculate cash offers and explore alternatives to help you make the best decision for your situation.
So How Much Do You Really Lose With an As-Is Sale?
As a general rule, if you have the time and money to renovate your home, you can expect to increase its value by approximately 1.5 to 2 times the cost of repairs. For instance, if your home can sell for $200,000 “as-is” and the repairs cost $50,000, you can likely sell the fully remodeled home for around $275,000 to $300,000.
So based on this rule of thumb, if you sell your home as-is, you lose about 50%-100% of what it would cost you to completely renovate your home (in the example above, you would lose about $25K-$50K). Keep this in mind as you weigh if an as-is sale is the right option for you.
How Florida Cash Home Buyers Calculates As-Is Offers
We understand selling a house can be stressful, so we offer a straightforward option: a no-obligation cash offer for your home. Our offer considers the potential value of your house after repairs (ARV) and how much we’ll need to invest in it. And if we don’t think a cash sale is the best route for you, we’ll let you know.
As a general rule, if you have the time and money to renovate your home, you can expect to increase its value by approximately 1.5 to 2 times the cost of repairs. For instance, if your home can sell for $200,000 “as-is” and the repairs cost $50,000, you can likely sell the fully remodeled home for around $275,000 to $300,000. Keep this in mind as you weigh if an as-is sale is the right option for you.
When we put together an offer, we factor in the cost of overhead expenses like commissions and closing costs and ongoing holding costs like taxes, insurance and HOA fees, typically around 10% of the resale value. Additionally, through experience, (and some trial and error), we’ve learned we need a minimum profit of 10% on the ARV. This ensures we can buy, fix, and resell your home while making a reasonable profit.
Here’s an example to help illustrate the process: Your house could be worth $300,000 after repairs (which we refer to as the ARV), but it needs $40,000 in work. We’d use this formula: ($300,000 – 20% of the ARV for overhead costs and profit margin) – $40,000 in repairs = a $200,000 cash offer.
We understand that a cash sale may not be the best option for everyone. However, if it sounds like it might be right for you contact us today to learn more about our process. We promise to be transparent and answer all your questions honestly.
Avoid Additional Fees by Selling to a Cash Home Buyer
Whether you sell as-is or decide to make repairs, if you’re going through a real estate agent, you’ll have to pay associated fees. Depending on the property’s condition and the timeline in which you need to sell, it may make more sense to sell as-is.
| Factors | Selling with a Realtor | Selling to a Home Cash-Buying Company |
|---|---|---|
| Commission | 5% to 6% | None |
| Repairs | Varies | None |
| Staging | 1% to 4% | None |
| Closing Costs | 1% to 3% | None |
Factors That Influence an As-Is Sale Price
Thinking of selling your property as-is? While it offers a faster and more convenient way to close a deal, you can expect the final sale price to reflect the condition and additional work buyers might need to take on.
There are factors that will impact your sale price when selling as-is, such as
- Home condition: The extent of repairs needed, from minor repairs that are merely cosmetic touch-ups to major repairs, such as structural issues, will significantly impact the price. Buyers will factor in the cost of renovations when making their offer, so a house in good condition will naturally fetch a higher asking price than one requiring extensive work.
- Type of buyer: Cash investors are more likely to be comfortable with fixer-uppers, as they often have the resources and expertise to handle repairs themselves. However, they’ll likely offer a lower price compared to a traditional buyer who may be financing the purchase and needs a move-in-ready home.
- Real estate market: The overall health of the housing market plays a significant role. In a seller’s market with high demand and low inventory, even an as-is property might attract multiple offers and a higher sale price. Conversely, a buyer’s market with more options and lower demand could lead to lower offers on as-is properties.
- Property location: The desirability of your neighborhood also impacts the value of your home, even when selling as-is. Homes in sought-after areas with good schools, amenities and low crime rates will likely command a higher price, even if your home needs repairs, compared to properties in less desirable locations.
- Comparable properties: Recent sales of similar as-is properties in your area provide valuable benchmarks for determining your home’s market value. By analyzing comparable properties (comps), you and your listing agent can get a clearer picture of the price range for similar homes that have recently sold. This helps set realistic expectations for your as-is sale price.
Who Buys Homes As-Is?
Traditional home buyers typically require move-in ready properties for financing, making as-is sales less common.
This is where cash buyers like FCHB come in. We buy houses as-is from homeowners directly for cash, offering a fast and hassle-free solution. We handle all repairs ourselves, so you don’t have to worry about renovations or finding contractors.
Unlike house flippers who aim for a big profit and may give you a lowball offer, we focus on providing you a fair offer and a smooth closing process, helping you make a quick, convenient home sale.
How to Sell Your House As-Is
Selling your property as-is can be a convenient way to offload a home that needs repairs or renovations, especially when they’re beyond what you can afford or want to invest. Here’s a breakdown of the steps involved in the home-selling process of an as-is property:
- Get a pre-listing inspection. This professional assessment identifies any existing issues with your property, from structural problems to electrical deficiencies. Knowing the condition up front allows you to disclose problems accurately and price your home competitively.
- Gather documents and disclose. Compile documents like property titles, surveys and past maintenance records. Since Florida is a “duty to disclose” state, you’re legally obligated to disclose all “material defects” through a seller disclosure form. This includes any major damage, environmental hazards like lead paint or asbestos, potential infestations, HOA fees and anything else that could negatively impact the property’s value or safety.
- List the property or sell directly. You can choose to list your property with a real estate agent who will handle marketing and buyer negotiations. Alternatively, you can reach out to cash home buying companies like FCHB for a fast, all-cash offer.
- Inspection period. Once you find a buyer, they’ll likely request a home inspection period to have the property thoroughly examined. During this time, either party can walk away from the deal if significant unforeseen issues arise.
- Close the sale. After negotiations and a successful inspection, finalize the sale through a closing process managed by a title company. You’ll receive the agreed-upon sale price, and the buyer becomes the new owner.
We typically close in 15 to 30 days, but have closed in as little as 5 days!
The Pros and Cons of Selling As-Is
It’s important to understand the advantages and disadvantages of selling as-is before you decide to go that route.
Pros of Selling As-Is
Some of the main benefits include:
- Deal directly with investors, no open houses, showings, realtors or hassles: Cut out the middleman and avoid the time commitment of showings and open houses.
- Quicker than repairing: Sell your property faster without the delays associated with repairs or renovations.
- No out-of-pocket expenses: Save money on repair costs, home improvements and realtor commissions.
- No negotiations with potential traditional buyers: Receive a straightforward offer from the investor, eliminating the back-and-forth negotiation process.
Cons of Selling As-Is
Some of the main downsides are:
- Potential buyers can back out more easily if they find something is wrong with it: As-is properties allow for more scrutiny, and buyers may walk away if significant issues are discovered during the inspection.
- Lower selling price: Expect a lower selling price compared to a fully repaired and updated property.
- It’s more difficult for potential buyers to secure financing for as-is sales: The type and amount of repairs required can make it challenging for traditional buyers to secure financing through certain lenders, limiting your pool of potential buyers.
- Negative perception from traditional buyers: Some traditional buyers might view as-is properties with suspicion, assuming there are significant hidden problems even when you’ve disclosed known issues.
Should You Fix Up Your House or Sell It As-Is?
There are lots of things to consider when deciding to fix up your house or sell it as-is, such as current market conditions, the cost of repairs vs. your ROI, your financial situation, how quickly you need to sell the house and your home’s condition. You’ll want to weigh those factors when considering which option is best for you.
| Factors | Fixing Up Your House | Selling As-Is |
| Cost | Investment to fix repairs | No investment |
| ROI | Potential to increase home value | Offers may be lower to account for repairs |
| Timeline | Can be lengthy depending on the repairs | Quicker process with money in your hand fast |
| Buyer appeal | Appeals to a wide range of buyers | Limited primarily to investors or cash buyers |
| Effort | Requires effort to get repairs done | No hassle since there’s no need for repairs or renovations |
| Financial risk | Risk of overinvesting in repairs | Risk of accepting a lower sale price |
Sell with Trusted Cash Home Buyers
For a fast, hassle-free sale, selling as-is to a cash buyer like Florida Cash Home Buyers can be the ideal solution. Our easy three–step process gets you a cash offer in as little as 10 minutes with no need for repairs or open houses. We handle the closing process in 15 to 30 days, so you can move on quickly. Contact FCHB today and see how we can simplify selling your home as-is.