Selling a House As Is? Here’s How Much You Could Lose by Katy Byrom

Originally published at Clever Real Estate. Read the full article here! https://listwithclever.com/real-estate-blog/how-much-you-lose-selling-as-is

When it comes to how much you lose selling a house as is, there’s really no easy answer. 

If your home is in decent shape and you live in a desirable area, you might attract multiple buyers willing to pay full asking price (or more) for your home. But if your home requires extensive repairs and you need to sell it ASAP, you might only get half its potential worth.

For many homeowners, listing a home in as-is condition is the more convenient choice, even if it results in a lower profit. You can save time and money up front by avoiding repairs and appealing to buyers who can close quickly for cash. 

However, if market conditions favor buyers or you’re competing with homes that are fresh and up-to-date, an as-is sale can work against you. This is especially true since buyers will still be able to request inspections and negotiate the price.

To gain some clarity on the financial aspects of selling as is, we asked top listing agents and real estate investors from across the country to weigh in.

Costs of selling a house as is

When considering the costs of selling as is, a lot hinges on your home’s location, the specific repairs and updates it needs, the state of the housing market, and the buyers looking to purchase in your neighborhood. Your personal financial situation and the amount of equity you have in your home will also come into play. 

“Fixing up a house does not necessarily have a dollar for dollar return on investment, especially for items like roof, plumbing, etc.,” cautions Sammy Lyon, associate broker at Dow Capital in Los Angeles. “In most cases, my advice is to disclose the known issues, let the new buyer do their own due diligence, and be prepared to give a credit for any major repairs.”

“Sometimes, less is more when it comes to pre-sale home improvements,” agrees Jave Blackburn of WeBuyAnyHouseAsIs. However, the investor cautions that market conditions will also determine whether you make a profit or loss when selling as is. 

“In a seller’s market, as-is sales can be more lucrative due to high demand and low supply,” says Blackburn. “However, in a buyer’s market, making key repairs can significantly increase the home’s appeal and value.”

Originally published at Clever Real Estate. Read the full article here! https://listwithclever.com/real-estate-blog/how-much-you-lose-selling-as-is