Every seasoned realtor knows that “as-is listings” are problematic. More often than not, sellers want to list as-is because they think they can’t afford the necessary renovations and don’t want to deal with the perceived hassles of home improvement.

Agents that work with Curbio understand that we eliminate the challenges of pre-sale home improvements:

  • Sellers don’t have to pay for the work until closing
  • We complete renovations in 3-6 weeks
  • We only make improvements that will result in a better sale price

Nevertheless, convincing homeowners to renovate their homes before you list them can be tough. That’s why we’ve assembled this quick list of the top three reasons why homeowners shouldn’t list as-is.

  • The 70% Rule

    Most as-is listings are purchased by real estate investors aka house flippers. A house flipper’s single objective is to make as much money off of a property as possible. They will typically offer 70% of the estimated After-Repair Value (ARV) so they can make a profit of at least 30% after repairing and selling it.

    They’ll also deduct the estimate price of repairs for the home, reducing the offer amount by even more.

    The result is that the homeowner sells their house for significantly less than its true value.

  • More Days on the Market

    All home buyers begin online. They look at photos of homes online and make fast decisions about which homes they want to learn more about and which to skip. As-is properties show very poorly online, and so most buyers will pass on them immediately. This significantly shrinks the potential audience for the home, and, because as-is listings only attract a small subset of potential buyers already (i.e. flippers or buyers with hefty renovation budgets), they tend to sit on the market for significantly longer than move-in ready houses.

    Each week the listing sits on the market, the perceived value of the home–and the potential for an at-list offer–decreases.

  • Low Ball Offers

    Many sellers list their home “as-is” because it needs a lot of cosmetic work. Even though the home has no significant structural flaws and needs no major repairs, because the sellers can’t afford to make the home feel modern and updated, listing as-is seems like the only option. However, buyers assume that “as-is” houses have major problems, and thus tend to make low-ball offers. Homeowners listing as-is will likely make even less money than they anticipated.