Selling Your Home As Is: Pros & Cons

There’s no “right” way to sell a home. There are more profitable ways and faster ways, but the best way to sell your home will come down to how well a selling strategy meets your needs. Those looking to maximize sale proceeds may consider professional staging or working with an expert real estate agent. But if you’re looking to sell your home quickly and with as little effort as possible, selling it “as-is” may be the best option. 

Of course, there are downsides to this approach to match the many perks. Let’s walk through the pros and cons of selling a home as is. 

What Does Selling "As-Is" Really Mean?

It’s not uncommon for buyers to negotiate various points of a sale. Sometimes, this can mean bargaining for a better price, but often it means requesting certain repairs before going through with the purchase. When a home is listed as-is, that tells a buyer that the home is being offered, well, exactly as it is. Peeling paint won’t be getting a fresh coat, nor will a faulty water heater be replaced before move-in –– the home you see is the home you get.

Selling your home as-is can make for a different selling experience for both you and your potential buyers.  

Can You Sell a Home As-Is?

Selling a home as-is is not quite the standard, but it’s also not an uncommon option. And in hotter real estate markets, selling a home as-is might not be much of a sacrifice, either. You don’t need a real estate agent to sell your home as-is, but it can help to have one –– their expansive networks can help identify real estate investors or buyers looking to take on a project rather than a pristine, move-in ready home.    

Legal Implications

As mentioned earlier, an as-is listing basically means what you see is what you get. This does not, however, give you an avenue to obscure major issues with the home. In some states, like Ohio, you’ll be legally required to fill out a Residential Property Disclosure Form. This will uncover any major defects or damage, ensuring transparency around the true condition of the home.¹

Buyer's Expectations

The Residential Property Disclosure Form and its regional equivalents serve a legal purpose, but they also ensure buyers know what they’re getting into before purchasing a home. An as-is sale only works when there’s full transparency. Those opting for an as-is sale should take great care to include all necessary information in the listing, providing detailed photos and remaining open to questions so buyers know exactly what they’re getting.

The Pros and Cons of Selling a Home As-Is

With a better understanding of what it means to sell a home as-is, we can begin unpacking the benefits and potential limitations of an as-is sale.  

Benefits to the Seller

Between selling your home faster to an easier overall selling process, discover the pros of selling your home as is:

• A Faster Sale – Selling a home as-is can be a quicker process for several reasons. For one, it eliminates the need for repairs –– the speed of which can often be dependent on contractor availability and permitting. With these variables out of the equation, you can sell on your own timeline. As-is sales are also generally cash transactions. Without the presence of a lender, this process can be far quicker.²

• Less Preparation to Sell – There’s a lot that goes into selling a home. Improving curb appeal, professional staging, minor (or significant) improvements –– the list goes on and on. When selling a home as-is, you can cut out these time-consuming prep pieces, focusing your energy on taking detailed photos and writing a descriptive, transparent listing that tells potential buyers precisely what they’re looking at. 

• No Negotiation – Negotiation can be a major part of the home selling process. And while there is often negotiating over price, it’s negotiating repairs that can take up the most time. Buyers make their requests to real estate agents, who relay those requests to sellers, who consider the request before reversing the process. When selling a home as-is there’s little to no need for negotiation, removing one more lengthy step from the equation and getting you your sale proceeds faster. 

Potential Drawbacks

Despite the benefits, it’s important to be aware of the potential downsides of selling a home as is:

• A Lower Sale Price – Home buying is a big decision and purchase, so it should come as no surprise that many buyers want their purchase to be move-in ready. This can result in undervalued (or even seemingly unfair) offers, as buyers tend to place a premium on the repairs they’ll have to do –– no matter how minor.  

• Appraisal & Inspection Challenges – Selling a home as-is doesn’t mean that any issues with the home magically go away. In the event that a home inspection unveils the need for significant repairs, you won’t have to fix them, but potential buyers also don’t have to go through with the sale. Further, if an inspection reveals structural damage, lenders may refuse to finance the purchase unless the issue is addressed.  

• Different Buyer Pool – Selling your home as-is will also likely attract a different pool of home buyers. Whereas a move-in ready home may appeal to a family looking to seamlessly transition into a new space, a fixer-upper being sold as-is doesn’t offer the same convenience. Instead, as-is sales can be popular among cash buyers –– thus bypassing appraisals or inspections required by lenders. 

There are clear benefits and limitations to selling your home as-is. But depending on your situation and goals, you may find the pros of this approach to outweigh the cons. 

Preparing Your Home for an As-Is Sale

If you find that selling your home as-is is the best way forward, there are some things you can do to smooth out the process. 

Essential Disclosures

There are certain disclosures homeowners are required to make when selling a home, and as-is sales are not exempt from these disclosures.³ Forgetting to prepare these disclosures is one of the biggest mistakes to avoid when selling your home. What these disclosures are will depend on the state the property is in. Typically, however, they refer to negative information, including: 

• Water damage
• Potential environmental dangers
• Nuisances in the neighborhood
• Deaths on the property

As you prepare to sell your home as-is, do your research to make sure your essential disclosure bases are covered. 

Pricing Your Home Correctly

Homes sold as-is can move very quickly –– if the property presents a genuine value to a prospective buyer. For this reason, pricing your home appropriately will make a world of difference. There are a number of tools at your disposal when it comes to generating a fair and accurate price: Zillow’s free “Zestimate” uses an algorithm to give you a ballpark price, and real estate professionals can assemble market analyses using comparative sales.⁴

For a complete list of ways to price your home correctly before an as-is sale, consult our guide on how to determine home value.

Navigating Offers and Closing the Sale

One of the biggest perks of selling your home as-is is that there’s no negotiation over repairs –– and generally less negotiation over price. This can make it much easier to navigate the offers you receive. Still, whether you’re working with a real estate agent or selling your home as-is and by owner, go into the process with a clear understanding of your price floor. Field any offers you receive with this floor in mind and you’ll give yourself the best chance of striking a deal you’re happy with. 

Once you’ve got an offer that aligns with your goals and expectations, you can begin the closing process. This will likely differ from a traditional closing process since as-is home buyers tend to also be cash buyers. Without the involvement of a lender, you can close in as little as a couple of weeks (as opposed to a month or more with a traditional sale.)⁵

Truehold's Sale-Leaseback Option

Fortunately, there are myriad alternatives that offer a similar level of convenience for those looking to tap into their home equity with little work. For one of the most convenient, efficient, transparent, and flexible options, consider Truehold’s sale-leaseback. This option provides another way to quickly sell your home as-is and remain in it as a renter.

What Is a Sale-Leaseback?

A sale-leaseback allows you to sell your home in exchange for your home equity, then continue to live in your home as a renter. Unlike a reverse mortgage, you are not borrowing from your home equity –– meaning there’s nothing to repay. You simply receive your home equity free and clear to be applied however you see fit. 

Why Choose Truehold’s Sale-Leaseback?

In addition to the benefits of a standard sale-leaseback, Truehold’s sale-leaseback brings transparency and around-the-clock support from our team of advisors. We guide you through the journey with care and reassurance, then help you make the most of it by taking care of things like routine household maintenance, taxes, and insurance. You can continue living in your home as a renter for as long as you continue to pay rent, or you move out and on to your next adventure. The choice is yours and yours alone.  

Is Selling As-Is Right for You?

Selling your home as-is can be a great way to access your home equity quickly and with little effort –– but it’s not the only way. Knowing your options and will help you throughout your home-selling process.

Just as if you were selling your home as-is, Truehold’s sale-leaseback paves an avenue to your home equity without the hoops of a traditional sale: no staging, no open houses, and no need for fresh coats of paint. You also get the added benefit of flexibility, remaining in your home for as long as you need while continuing to pay rent. 

If you’re a homeowner taking a closer look at selling your home as-is, consider turning your attention to Truehold’s sale-leaseback. To learn more about Truehold’s sale-leaseback, connect with one of our trusted advisors today.  

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Sources:

1. Homelight. How to Sell a House ‘As-Is’ in Ohio. https://www.homelight.com/blog/selling-a-house-as-is-in-ohio/  ‍
2. Hometown Development Company. As-Is Home Sale vs. Traditional Home Sale: Offer Comparison. https://hometowndev.com/blog/offer-comparison-as-is-home-sale-vs-traditional-retail-sale/‍
3. Investopedia. Buying a Home: 8 Essential Seller Disclosures. https://www.investopedia.com/articles/personal-finance/061214/real-estate-flipping-8-disclosures-you-must-make.asp 
4. Bankrate. How to price your home for a perfect sale. https://www.bankrate.com/real-estate/how-to-price-your-house-for-sale/ 
5. HomeLight. How to Sell a House ‘As Is’ in Ohio. https://www.homelight.com/blog/selling-a-house-as-is-in-ohio/

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