How Much You Lose Selling a House As Is

Here’s the honest answer: it depends. Selling a house in “as is” condition doesn’t necessarily mean you’ll take a huge financial hit.

In fact, some situations work out just fine, while others might involve some loss. The key is understanding what you’re working with.

For instance, if you’re selling in a hot real estate market, the demand might outweigh the condition of your property.

Buyers might still be interested, even if your house has a few rough edges. In this case, you may not lose much, if anything at all! The price gap between regular home sales and properties sold as-is may not even be too wide.

On the flip side, if the local housing market is slower or your property needs serious repairs, you may need to adjust your final sale price expectations.

It’s all about the market conditions and the buyer pool you’re working with. You could walk away with less money or, surprisingly, you could find yourself profiting.

Now, let’s talk numbers. On average, selling a house in bad condition “as is” might mean losing anywhere between 15% and 20% off the potential market value of your home.

But hold on! This percentage is largely dependent on the condition of your property and the buyer’s willingness to take on repairs.

If the home needs significant work, think of new roofing, plumbing, or foundation fixes, you’re more likely to hit that higher end of the range.

On the other hand, if your home is just a little outdated but structurally sound, the loss might be far less than expected.

The good news? There are ways to minimize that loss and even make a quick sale without losing too much, such as by targeting cash buyers looking for houses in need of repair.

Now, let’s go over how you can sell your house “as is” while saving as much money as possible.

Selling to a Real Estate Investor

Investors are a common option for sellers looking to sell “as is.” But here’s the thing: not all investors are created equal.

Before accepting an offer on one of your largest assets, educate yourself on how to sell your house to an investor. Below is information on the pitfalls to avoid.

Look for True Investors for a Legitimate As-Is Sale 

Not all companies that offer cash house buying services are really cash house buyers. Many of them are real estate wholesalers. They advertise the same easy process of home selling as investors, but in fact, they act as middlemen.

Wholesalers enter a purchase contract with you as if they were a buyer. But then they sell that contract to a real investor, so that it’s the investor who buys your house instead of them.

The catch? They make you an offer, keeping in mind their assignment fee — the fee that the investor pays them for finding the investment opportunity.

This means that if you sold your house directly to the investor, you’d be able to sell your house for more. If you want to minimize losses, avoid wholesalers and go directly to real estate investors.

Know iBuyers’ Fees

iBuyers are online platforms that advertise buying your house fast and via the internet.

Upon your online request, they give you a quick offer without even visiting your house in person. But here’s the kicker: this offer is preliminary.

If you accept the offer, they’ll send someone to inspect your house in person. The inspector will surely find enough problems with your home’s condition that they will use to adjust the initial offer, which will likely be much lower.

If you read reviews about some of these companies, you’ll find complaints about decreasing an offer by a substantial amount disproportionate to the required repairs.

And don’t forget, unlike most local ‘we buy houses’ companies, they also charge fees similar to realtor commissions on top of their already discounted offer.

If you’re considering iBuyers, make sure you know the hidden costs involved.

Look for Ethical Investors

Not all investors are trying to shortchange you. Some genuinely want to help you get a fair deal.

To find ethical investors, do your research. Don’t be afraid to ask questions and screen them carefully online.

You can also request multiple cash offers at once from the screened and vetted investors on HouseCashin.

This will allow you to compare offers and make sure you’re getting the best deal. Request your cash offers now.

Selling With a Real Estate Agent

If you choose to go the traditional route and list your house with a local real estate agent, there are also ways to save money.

First, try to negotiate a lower commission rate. Also, choose an agent who specializes in as-is properties.

Study the cost of selling a house with a realtor and closing costs for home sellers, which can chip away at your profit.

Like any other vendor, real estate agents may also be unethical or simply unprofessional.

You don’t want your house to sit on the market for too long because your agent has put their marketing on the back burner. After all, their other clients’ homes promise them a higher commission.

The longer your house sits on the market, the longer you are paying the utility bills, property taxes, and HOA fees.

Do your research on the realtor’s background. Read reviews left by their clients. Ask them for the stats about their work, such as how long their properties sit on the market on average.

Listing a House For Sale By Owner

If you have some real estate experience, selling your house as is by yourself to a non-investor buyer could be an option to minimize losses.

But be warned, going FSBO comes with its risks. Without an agent’s help, you’ll have to handle finding out what your home is worth, marketing, negotiations, and contracts yourself.

And if you’re not familiar with the selling process, you could end up losing more in the long run, especially when dealing with FSBO closing costs.

Here is a tip I can give you when going the FSBO route. While selling “as is” generally means skipping major repairs, there’s something to be said about taking care of small home improvements.

Minor repairs, like patching up holes, fixing leaky faucets, replacing broken fixtures, or painting walls, can sometimes boost your home’s appeal without costing too much.

Potential buyers tend to make offers based on emotions (except for real estate investors — their approach is strictly math-centered). The better impression your home makes, the better offer you can get.

Small cosmetic flaws that are easy to fix can actually create a worse impression than one major and expensive problem they accompany.