Thinking about selling your house as-is? Despite the fact that your house may need extensive repairs and is long overdue for a cosmetic update, it’s not out of the question to sell your house as-is. Home buyers, like CoreMark Homes, are happy to purchase your home as-is and for a fair price. As the seller, it’s important to understand what the process entails before you move forward. Thus, we put together this ultimate guide for sellers looking to avoid preparing their home for the market, saying no to repairs and selling for cash. Do you feel like baking cookies every time a potential buyers stops in to view your home? We didn't think so.

Choosing to Sell Your House Off Market

If you’re considering selling your house as-is, it means you’re choosing an alternative to the conventional methods people use to sell a house. This might be for any number of reasons. Often we find, given a sellers current circumstances, the repairs and updates required to get the house ready for the market aren’t worth the time and effort. Here are a few of the situations in which homeowners may choose to sell their house as-is:

• The home was transferred to them through probate as part of an inheritance.
• They need to move suddenly for a job relocation, family or health issue, or financial reason.
• The house is a rental property and the seller is looking to free up liquidity.
• The owner isn't keen on paying hefty agent commissions or committing time to find a prospective buyer.

Deciding to sell a house as is involves a trade-off. In exchange for a fast, simple, and convenient transaction, the seller typically accepts a lower price than they might receive listing the property on the MLS (multiple listing service). Fortunately, selling the home as-is bypasses any need to make repairs or orchestrate major renovation projects and skips the conventional steps involved in a market real estate transaction. Let's take a look at what you'll want to know about how to sell a house as is and whether it’s the best move for you.

What does it mean to sell a house as-is?

The conventional method to sell a home is through a real estate agent that uses the MLS (multiple listing service) to list the home for sale. The main advantage of using a real estate agent to list your property on the MLS is the fact that you’ll expose the property to a huge number of potential buyers. This is a viable option for homeowners who are not in a rush and who have the time and resources to wait for the right buyer. Listing a home for sale with an agent may require your home to be in “tip-top” condition to gain traction with buyers. Perhaps you’re pressed for time and need to get out of the home quickly. Or, maybe the house needs expensive repairs that you don't have the bandwidth or resources to complete. When you sell your house as-is, you’re forgoing the use of a real estate agent and choosing not to list your house on the MLS. This is also known as an off-market transaction. An as-is sale means you’re selling your home without repairing it, staging it, or updating the aesthetic value of the home.

Most common reasons to sell a home as-is

As mentioned above, there are many reasons homeowners may want to sell their home as-is. Typically, these boil down to a combination of life circumstances, a lack of interest, time, resources and/or little to no appetite for home renovations. Specifically, these life reasons may compel a homeowner to sell their home as is:

• Death of a family member
• Divorce
• Bankruptcy
• Foreclosure

Other reasons to sell a home as-is may be due to:

• Privacy | homeowner doesn’t want multiple buyers coming into their home
• Desire for simplicity | no managing real estate agents & organizing contractors
• Neighborhood may not be gentrifying as expected

As a home is often one of the biggest investments in a person’s life, uncertainty of the future may be another driving factor in wanting to sell quickly. Historically, a recession or economic downturn might create a significant impetus to sell property. Currently, the economy is taking a massive hit due to coronavirus.

Will a pandemic affect selling your house as is?

With coronavirus impacting the U.S. and world economy, financial experts warn that we could experience a housing crash similar to that of 2008. Could COVID-19 drive home prices into the ground? While home prices and sales of homes may see a dip, new laws and housing regulations may help prevent another housing crash. Nevertheless, it’s important to stay abreast of how current events affect your finances, especially if you have plans to tap into the equity in your home.

Selling a house in need of repair

If you’re considering selling a house as-is, the house is likely not be in peak condition. Perhaps the home needs extensive repairs or looks like its caught in a time capsule from the 1970's. As a busy homeowner, this is never a fun place to be. An efficient repair strategy is to focus on addressing big-ticket items such as plumbing, electrical components and roofing. Pay special attention to safety and structural issues as these types of problems may prevent buyers from being able to access financing. Another consideration is to sell your home to a cash buyer or investor and skip the remodeling altogether. At CoreMark Homes, our Market Experts can visit your property and make a same day cash offer to buy your house direct. For more information about what we do, and how we do it, check out How it Works.

Should you sell your house as-is or renovate?

If you’re faced with the decision to sell your house as-is or go the renovation route, the biggest obstacle is figuring out whether the repairs are worth the investment. Major updates such as a new roof or having to deal with foundational issues are costly and may take months to fix. On the other hand, if your house only requires cosmetic repairs such as replacing a kitchen sink or installing new cabinets, you may want to address those issues and then list it for sale. If the home is in decent condition, consider listing it on MLS with the help of a real estate agent. This is a great way to get top dollar for your property. Keep in mind, that the sales price of a home sold on the market is nowhere near what you pocket from the sale. For more information on Net Proceeds from a traditional home sale, check out "How to Calculate Net Proceeds From a Home Sale".

Pros and cons of selling a house as-is

As with any big life decision, there are advantages and disadvantages for every choice. Here’s some helpful information to consider when deciding how to sell your house.

Pros of selling a house as is:

• Save money: You won’t have to fork over a lump sum of cash to make expensive repairs. You also won’t pay agent fees, transaction costs, and holding expenses.
• Save time: You won’t have to spend time and effort coordinating with contractors and getting repairs done, which may take months. You also bypass the time taken by showings, cleaning and open houses required in the traditional listing process.
• Avoid stress: Putting your house on the market means you need to wait for a buyer to view your house and make an offer. Often offers will include concessions from the seller that open the door to a complex negotiation process filled with uncertainty.

Cons of selling a house as is:

• Lower sales price: You may net slightly less money in the transaction for the convenience.
• Vetting buyers: You may choose to compare offers from a multitude of buyers.
• You are responsible for navigating the terms of a purchase agreement without representation from an experienced agent.

Selling as-is vs selling on the market

When you sell your house on the market, you’re likely signing a contract to work directly and exclusively with a real estate agent. Ideally, the agent has all of the marketing tools and experience to complete the sale of your home in a timely manner. An agent lists the home on MLS, coordinates open houses, and is the point of contact coordinating everything required to close the transaction. When the house sells, the agent takes a commission from the sale, typically 6% of the home’s sale price. Note that many real estate agent agreements have a clause that states they have the “exclusive right to sell.” This means the agent will receive a commission regardless of who finds the buyer. While selling with a real estate agent is a popular way many homeowners sell their property, it’s expensive. In today's market, buyers pay a premium for homes that are fully renovated and move-in ready. For a complete look at all the cost associated with a traditional sale be sure to check out "8 Hidden Cost When Selling Your Home."

Three clever alternatives to selling on market

Sell to a Cash Buyer

When you sell to a cash buyer, you’re selling off market and not listing your house on an MLS. An investor or cash buyer purchases homes so they can renovate and resell the house for a profit. These kinds of buyers may not need to see the house or be concerned with renovations since they plan on making repairs anyway. Because of this, a cash buyer may present a hassle-free way to quickly sell your home. Cash buyers are also a great way to skirt paying hefty closing fees. With a home buyer like CoreMark Homes, you can close in as little as 7-10 days. An added bonus when selling to CoreMark, you can access a cash advance from the sale proceeds up to $10,000 before the close of escrow. This might come in handy to offset the cost of relocating.

Sell to an iBuyer

Within the last few years, iBuyers have become increasingly popular. An iBuyer is basically a real estate company that uses technology to estimate your home’s value so they can make an offer to purchase it from you directly. Just like any of the other options, it’s important you do your homework so you know the potential risks of partnering with an iBuyer when selling a house as is. For a complete look at various iBuyers in the market, be sure to check out "What is an iBuyer."

List the Home For Sale by Owner (FSBO)

While it may seem simple to list your home on your own, there are many challenges with navigating a home sale. Nationally, FSBO listings sell for 16% less then homes listed on the market with an agent. It's important to accurately price your home, show it to potential buyers and utilize the necessary paperwork to complete the sale. FSBO may require more effort then you realize and if anything goes wrong, the full burden is on the seller.

Net Proceeds

Before making a decision on how best to proceed, it's prudent to understand the net proceeds from each type of home sale. A simple way to think of the net proceeds is the amount or profit you’ll receive after you sell your house, minus all expenses that went into the transaction. These include:

• Commissions
• Closing costs
• Repairs and concessions
• Transaction fees
• Holding costs

If you’re trying to decide if you should sell your house as-is, the table below serves as a guide for what to be aware of. The cost estimates here use industry averages.  

	Off Market (As Is)	iBuyer	FSBO	On the MLS
Agent Commissions	None	None	2-3% of sale	5-6% of sale
Closing Costs	None	1-2% of sale	1-2% of sale	1-2% of sale
Repairs	None	iBuyer decides	Seller decides	Seller decides
Other Costs	None	iBuyer fees (6-12% of sale)	Cleanings, holding costs, concessions	Cleanings, staging, holding costs, concessions
Time to Sell	Immediate	Immediate	Average of 90 days	Average of 60 days
Flexible Closing	As little as 10 days	As little as 14 days	Depends on buyer	Depends on buyer
Potential Cash Advance	Yes	Yes	No	No
Sale Price	Below market value	At or below market value	At or below market value	Market value

  For more information, be sure to check out "How to Calculate Net Proceeds from a Home Sale".

Be mindful when selling a house as-is

When selling a house as is, be mindful that there are predatory buyers who may take advantage of sellers in compromising situations. Here are some tips on what to look out for.

Red Flags with iBuyers

When you deal with an iBuyer, the initial offer is made before they actually see your house. As a result, the offer price often changes later in the process. No home buyer can make a 100% reliable offer without having a chance to walk through your property to inspect the interior, exterior, and overall condition of the house. Many retail buyers will back out of their initial offer or attempt to renegotiate prices if certain purchasing criteria aren’t met. In this way, iBuyers can legally reduce their offer to purchase a home after the inspection. Keep in mind, they also have the right to cancel the entire contract. In exchange for convenience, iBuyers often charge higher fees and commissions than other home buyers. These fees can range between 6 - 12% of the purchase price. If you are interested in selling to an iBuyer, be sure to take the time to compare multiple offers before committing to a sale.

Red Flags with Investors

If your house is in need of significant repairs, investors will likely be interested in your house. Generally speaking, investors pay cash for homes, as is. Typical business models vary but most to buy fixer uppers, remodel them, and sell or “flip” them on the market. Others renovate and rent out the property. Similar to iBuyers, many investors will present a “vanity offer” without seeing the property. This vanity offer is higher than what other buyers offer and intended to peak your interest. Once the inspection takes place, the investor may decide to lower the offer price. If you need to sell your home fast, this can set your timetable back and put you in a difficult position.

In Closing

If you're still on the fence about the best path forward, be sure to check out more information on how we arrive at a cash offer "What is Considered a Fair Offer?" . Also, for more information on what we do and how we do it check out "How it Works." If you prefer to avoid the expense of listing your property, we would love to purchase your home today “as-is”. Find out how much you can save on closing costs and other home-selling expenses with a no-obligation cash offer..