Selling a house as is vs fixing it up is the biggest dilemma homeowners face today.
It is a tough choice.
You look at your property and see potential. But you also see the peeling paint. Furthermore, you see the dated kitchen cabinets. You see the dollar signs stacking up on your repair estimate.
Should you invest thousands of dollars and months of stress to renovate? Or should you simply sell the house as-is to a cash buyer and walk away quickly?
This definitive guide breaks down the math. Ultimately, we will help you decide which path puts more money in your pocket and less stress on your shoulders.
The Core Dilemma: Selling a House As Is vs Fixing It Up
Real estate television shows make renovations look easy.
They make it seem like a coat of paint adds $20,000 to your asking price.
In the real world, it is rarely that simple.
When you are deciding between selling a house as is vs fixing it up, you are weighing two currencies: Time and Money.
What Does “Selling As-Is” Actually Mean?
Selling “as-is” is a legal term.
It means the buyer accepts the home in its current condition.
You make no repairs. You make no improvements.
If the roof leaks, the buyer takes the leaking roof. If the furnace is from 1980, that is the buyer’s problem.
This route is usually favored by homeowners who want speed. They often sell to real estate investors (like us at 2bhomes) who pay cash.
The Reality of “Fixing It Up”
This is the traditional route.
You hire contractors. You paint walls. You stage the home. You list it with a real estate agent on the MLS.
The goal is to attract a retail buyer who wants a “move-in ready” home.
These buyers are picky. They rely on bank loans. This means the house must pass strict inspections.
The Hidden Costs of Renovations (Fact-Checked)
Many sellers overestimate the value of renovations.
They also underestimate the cost.
Let’s look at the real numbers.
If you spend $80,000 on a new kitchen, do you get $80,000 back?
Almost certainly not.
According to the 2024 Cost vs. Value Report, a major midrange kitchen remodel only recoups about 49.5% of its cost.
That means for every $1 you spend, you lose 50 cents.
Here are the costs you need to consider:
- Material Costs: Lumber and appliance prices fluctuate wildly.
- Labor Costs: Good contractors are expensive and hard to find.
- Holding Costs: You must pay the mortgage, taxes, and utilities while renovating.
- The “Unknowns”: Once you open a wall, you might find mold or bad wiring.
When you compare selling a house as is vs fixing it up, you must subtract these costs from your final sale price.
Financial Breakdown: Selling a House As Is vs Fixing It Up
Let’s run a hypothetical scenario based on today’s market averages.
Imagine your house is worth $200,000 in its current condition.
If you fix it up perfectly, the “After Repair Value” (ARV) might be $260,000.
It looks like a $60,000 profit on paper. But is it?
Scenario A: Fixing It Up
You decide to chase that $260,000 price tag.
Here is what your expenses might look like:
- Renovations: $35,000 (Kitchen, paint, flooring).
- Realtor Commissions: $15,600 (6% of the sale price).
- Closing Costs: $5,200 (Estimated 2%).
- Holding Costs: $4,000 (Mortgage/taxes for 4 months of work).
Total Expenses: $59,800.
Net Profit: $260,000 (Sale Price) – $59,800 (Expenses) = $200,200.
You went through four months of construction dust and stress. You dealt with contractors. You risked the market dropping.
And you made an extra $200 compared to the as-is value.
Scenario B: Selling As-Is to a Cash Buyer
Now, let’s look at the other side of selling a house as is vs fixing it up.
You contact a cash buyer like 2bhomes.
We assess the property. We make a fair cash offer based on the market.
Let’s say the offer is $195,000 (Investors typically offer based on ARV minus repairs and risk).
- Renovations: $0.
- Commissions: $0.
- Closing Costs: $0 (We typically cover these).
- Holding Costs: $0 (We can close in as little as 7 days).
Net Profit: $195,000.
In this scenario, “Fixing It Up” netted you slightly more money, technically.
However, you paid for that small gain with months of your life.
Is 4 months of stress worth a few thousand dollars? For most people, the answer is no.
Pros and Cons: Selling a House As Is vs Fixing It Up
To make this decision easier, let’s break it down into a simple comparison.
Pros of Fixing It Up
- Higher Sale Price: A polished home sells for more top-line revenue.
- Wider Audience: Retail buyers on Zillow want pretty homes.
- Satisfaction: It feels good to see the final product.
Cons of Fixing It Up
- Upfront Cash: You need cash in the bank to pay contractors.
- Time-consuming: Renovations always take longer than expected.
- Inspection Risks: Retail buyers will hire inspectors who will find every flaw.
- Financing Fall-Through: A traditional buyer’s loan can be denied at the last minute.
Pros of Selling As-Is
- Speed: You can close in days, not months.
- Convenience: No open houses. No cleaning. No repairs.
- Cash Certainty: Cash offers do not depend on bank approval.
- Zero Upfront Cost: You do not spend a dime on repairs.
Cons of Selling As-Is
- Lower Offer Price: Investors deduct repair costs from their offer.
- Smaller Market: You are targeting investors, not typical families.
Who Should Sell As-Is?
The choice regarding selling a house as is vs fixing it up depends on your situation.
Selling As-Is is likely your best option if:
- You Inherited a House: Probate properties often need updates that you don’t have time for.
- You Are Facing Foreclosure: You need a quick sale to pay off debts.
- You Are Relocating: You got a job in another state and need to move now.
- The House Needs Major Work: Foundation issues or roof damage are too expensive for most owners to fix.
- You Hate Stress: You simply do not want strangers walking through your house during open houses.
If you are in our key markets, the demand for fixer-uppers is high.
Investors in these areas are actively seeking properties to revitalize.
How to Get the Best As-Is Offer
If you decide that the “As-Is” route is for you, you still want a fair price.
Here is how to ensure you get a good deal.
Clean Up the Yard: First impressions matter. Even if you don’t paint the house, mow the lawn.
Clear the Clutter: A messy house looks smaller. Remove trash and bulky furniture.
Be Honest: Disclose major issues upfront. Trust builds a better deal.
Get a Cash Offer from a Reputable Buyer: Look for local investors. Look for companies with reviews.
At 2bhomes, we pride ourselves on transparency.
We walk you through our numbers. We explain exactly how we arrived at our offer.
Making the Final Decision
We hope this breakdown of selling a house as is vs fixing it up has cleared the fog.
It comes down to your priorities. Do you have time, cash, and patience? Then, renovating might squeeze out a slightly higher profit.
Do you value speed, certainty, and peace of mind? Then selling as-is is the clear winner.
Don’t let a property become a burden. If you are tired of wondering what your home is worth, find out today.
Ready for a Fair Cash Offer?
Skip the repairs. Skip the realtor fees. Skip the stress.
Contact 2bhomes today. We buy houses in Cleveland. We will give you a no-obligation cash offer within 24 hours.
