Sometimes people want to sell a house as-is without an inspection. In the past several years, we saw a lot of listings come to market selling as-is because things were so hot, they would sell no matter what.
Now, however, things are a bit different. The real estate market is shifting, so skipping the inspection is rarer than it used to be. Still, some houses suited for faster sales don’t include inspections.
Working with an experienced agent is a great way to determine whether you should sell your house without an inspection. It can sell faster, and you won’t have to deal with buyer requests for repairs and other concessions.
However, selling a house as-is without an inspection can also drive away first-time home buyers and other buyers who take a more systematic approach to real estate.
There are certainly pros and cons, so we’re here to help you through it. Here are some of the main advantages and disadvantages of selling a house without an inspection.
The Pros of Selling Without an Inspection
Here are some of the main reasons why people sell their houses as-is.
Bypassing the inspection usually takes you from listing to closing much faster. The inspection can take weeks, depending on your house’s market and how soon the buyer schedules.
Inspections can be frustrating for sellers because the onus is on the buyer. Your offer contract stipulates how long the buyer has to close on the house, and some people are in a bigger hurry than others. Selling your house as-is removes one of the many steps in the selling process.
Of course, you’ll need to price the house appropriately if you want to sell it fast. Buyers will expect a discount versus comparable homes if they can’t get an inspection.
Buyers typically will come back to ask for seller concessions after an inspection. They’ll ask for price reductions to fix the roof, repair the gutters, or some other issue.
Without an inspection, however, there is much less back and forth. It’s great for people who don’t want to renegotiate prices.
Possible Cash Offers
Real estate investors sometimes look for as-is deals because they want a clean, quick transaction. Some people make a niche out of buying houses in disrepair and fixing them up to sell them for a profit.
If your house isn’t in excellent condition, it may be better suited for an as-is sale to attract cash offers from real estate investors. They’ll come into the deal expecting the worst and have the resources to handle any necessary renovations.
Sellers can save money by skipping the inspection because they don’t have to make any repairs during the selling process. An inspection might reveal, for example, that you have a leaking pipe or your furnace is on its last legs. These are typically repairs that cost thousands of dollars.
An as-is sale without an inspection helps sellers avoid paying out-of-pocket before the deal closes, which is excellent for people who are on a budget and don’t want to go into debt to get the house ready for a sale.
Eliminates Flaky Buyers
Believe it or not, a lot of buyers walk after an inspection. Some folks, particularly first-time homebuyers, want the perfect deal to happen. When they get the inspection back, they can walk away unless all their demands are met.
Even if sellers make concessions, sometimes buyers don’t want to manage any repairs. Avoiding the inspection discourages flaky buyers from even putting in offers on your house.
Cons of Selling a House As-Is Without an Inspection
Ok, so we’ve gone over the pros, but there are also some cons. Sellers have been in an excellent position for the last several years. With low-interest rates and slow building rates, buyers scrambled to make their offers more attractive by waiving inspections and appraisals.
Things are different now, so sellers must come to grips with some of the potential cons of selling a house without an inspection. Here are a few.
You won’t get as many offers when selling a house as-is. When you list as-is, you’re eliminating a large group of buyers who rely on inspections to help them plan repairs, upgrades, and renovations.
These people won’t even tour a house that waives the inspection, so you should expect light foot traffic. In many cases, as-is offers come from remote investors who may not even set foot in your house.
That’s fine because you only need one good offer to sell a house. Just don’t be surprised if you don’t get a handful of offers on your home.
Harder in Buyer’s Markets
Selling a house without an inspection is much harder to do in a buyer’s market. It’s easier when your house is one of only a few for sale in your area. People have more choices when there are many houses for sale.
Why would a buyer gamble on your house when they can inspect one down the street? Sellers typically must incentivize potential buyers with price cuts. People will look at your listing if the price is lower than something comparable that allows for an inspection.
Less Buy-In from Buyers
Buyers are usually willing to overlook minor issues with a home because they’re already invested. They put down earnest money, paid for the appraisal, and scheduled the inspection. When the inspection comes back, they’re thousands of dollars into the deal. It’s harder to walk away.
With an as-is sale, however, buyers can put off commitment for much longer. It’s easy to walk away because they haven’t sunk any money into the deal, or at least not as much.
Even listings with inspections receive unserious lowball offers. However, selling a house as-is is like a flashing neon sign for people who love sending low offers in hopes someone desperate will bite.
Sometimes people need to get out of a house quickly, so they list it as-is. Be careful if this is you because people smell blood in the water and will try to capitalize on your pain. You must price the house appropriately to avoid sending the wrong message to the buyer that you’ll sell at any price.
When You Have Some Time Before the Sale
If you’re in a massive hurry to offload the house, then an as-is sale may be your best bet. However, even if you have a few weeks before you need to close, you can increase the value of your house with a nice coat of paint.
In addition, cleaning the carpets and hardwood floors is a great way to spend your time before a sale. Do your best to get rid of any stains, odors, or other minor damage.
If you can transform the home into a place where people see themselves living, you’ll avoid only getting offers from investors looking for a new flip.
As-is homes are usually cheaper than regular listings. Sellers know that they’re not getting typical buyers on an as-is deal with no inspection. Adjust your expectations going into the deal, and you won’t be upset with your final sale price.
Some of the cleanest real estate deals are done as-is without inspections. However, do your best to find an expert realtor who knows how to manage the listing correctly.