Pros and Cons of Selling a Parent’s House As-Is
When your mom or dad moves to assisted living, memory care, or another living situation, getting their house ready to sell can feel like an entire second project. That’s because there is…
All of the stuff,
Deep cleaning, and
Needed repairs.
The kitchen appliances in the never-not-in-style
avocado-green appliances were a terrific idea.
And somewhere in the middle of all of this, someone will probably ask:
Simple Answer
Selling a parent’s house as-is can make sense when the cost, time, and work of preparing it for sale probably won’t be worth the additional value.
Could we just sell the house as-is?
Honestly, Maybe.
Selling as-is can save your family considerable time, money, and work. But it can also affect the buyers you attract and what they're willing to pay.
The important thing is understanding what you're gaining and what you're giving up.
What Does Selling a House As-Is Actually Mean?
Generally, selling a house as-is means the seller is offering the property in its current condition without planning to make repairs or improvements before the sale.
That could mean a house needing significant repairs. It may also be a home full of decades of stuff that have no sentimental or financial value at all. But it could also mean a perfectly livable house with dated finishes, old carpet, deferred maintenance, or simply a family that doesn't want to spend months preparing it.
As-is describes the selling strategy, not necessarily the condition of the house.
Selling as-is does not automatically eliminate applicable seller disclosure obligations.
The Pros of Selling a Parent’s House As-Is
Selling as-is can remove some of the work that comes with preparing a longtime home for the market. For many families, the biggest advantages aren't just financial. They're about saving time, reducing work, and making the transition simpler.
1. You May Be Able to Sell Sooner
Preparing a longtime family home for the traditional market can take weeks or months.
There may be belongings to remove, repairs to schedule, contractors to coordinate, cleaning to arrange, and improvements to complete.
Selling as-is can eliminate some of those steps.
When time matters, doing less can sometimes get your family to the finish line sooner.
2. Your Family Doesn't Have to Pay for Repairs Upfront
A new roof isn't free.
Neither is flooring, paint, landscaping, electrical work, plumbing, or remodeling.
If your parent needs money for assisted living or memory care, putting tens of thousands of dollars back into a house they're leaving may not be particularly appealing.
An as-is strategy can reduce and likely eliminate the amount your family needs to invest before selling.
You don't necessarily need to spend money on the house to sell the house.
3. There Are Fewer Projects to Coordinate
This matters more than it sounds. Inevitably, one repair becomes three estimates.
Three estimates become six phone calls and meeting with the contractors.
Trust me, something will get delayed for weather, broken down truck, or the ever-possible alien artifacts found in the attic.
Eventually, you may have a beautiful house to sell and you think, this is nicer than our own house now…
The finish-line is great… Congratulations.
But until then, You have accidentally acquired a part-time job.
The value of an as-is sale isn't only the money you don't spend. It may also be the work you don't have to manage.
4. It Can Reduce the Burden on the Family
When your mom or dad’s house is no longer the right size for their life and needs as they get older, it’s stressful. You’re already dealing with…
medical decisions,
finances,
paperwork,
belongings,
siblings,
and emotions.
Do you really want to add more to that pile?
Preparing a house for sale adds more than you would believe
Sometimes maximizing every possible dollar is the family's highest priority and other times reducing the amount everyone has to carry matters too.
Convenience has value, even though it doesn't appear on the closing statement.
It’s important to take into account how your mom and dad be feeling
The Cons of Selling a Parent’s House As-Is
Selling as-is can make the process easier, but that convenience can come with tradeoffs.
Doing less before the sale may affect what buyers are willing to pay, how they view the house, and who is interested in buying it.
1. You May Receive a Lower Price
This is the most obvious tradeoff because buyers may discount their offers based on repairs they expect to make, uncertainty about the home's condition, or the work required after closing. I work with a lot of investors looking to buy as-is and sometimes that discount is reasonable.
At the same time, sometimes buyers dramatically overestimate what repairs will cost.
Less preparation can mean accepting a lower sale price.
2. You May Attract a Different Group of Buyers
When you are selling your mom or dad’s house, the way that you sell it and the condition it’s in affects who is interested.
There is never a shortage of buyers that want a move-in-ready home. They don’t have the time, ability, or even desire to make their new home right. Those buyers may be willing to pay more for a house that doesn’t need updating.
At the same time, there are plenty of others are perfectly happy buying something dated. They have the time and the vision to make their home right. Those buyers may want to account for the fact that it needs that work when making an offer.
Then there are the investors that specifically seek properties in as-is condition. There are really two groups of investor buyers:
Fix-and-flip investors want to find houses that need work. These people have teams that they work with to get it done quickly to turn a profit.
Buy-and-hold investors try to buy a home that may need work or need a quick sale. These groups then hold the property and sell it to others when the value of the home goes up or sometimes they sell it to the fix-and-flippers.
The condition and pricing of an as-is home can therefore change the pool of buyers interested in it.
How you sell the house affects who is likely to want it.
3. Buyers May Price in More Risk Than the Repairs Actually Cost
I’ve had many conversations over the years trying to explain that when you price a house to be sold as-is, you’re giving the people offering on the house a lot of assumptions. What I mean by that is potential buyers estimate their costs to make the home right in whatever way they choose.
One example comes to mind:
A house I helped with in Lakewood needed a driveway. Before deciding to sell the house as-is, we got estimates. The estimate was around $15,000. After the first weekend of showings, we had an offer that was strong, except for it was $35,000 below what the seller’s family wanted. I spoke with the buyer’s agent and asked about the low offer and he explained that pouring a new driveway would cost $30,000. I told him that I had an estimate for $15,000 and I could give him the name and the actual bid. He insisted that the buyer’s already had bids and none came in under $28,000.
We went back and forth and were at an impasse. After a few more weeks on market, there were no other viable offers and I called the original agent and told him that we’d accept their offer that was lower than we expected. Everyone signed and the sale closed.
A few weeks later, the sellers’ family drove by their mom’s old house and saw the driveway being poured by the same company that gave us a bid. They called me agitated that they accepted $35,000 less and the buyer used a company that, assumingely, only charged $15,000.
I explained that this is always a risk of selling as-is because they can come up with virtually any price they determine is needed for a repair. Even though the repair was always ever going to cost less, the buyers also took a risk that it wouldn’t cost much more.
This time it paid off for the buyers, but there have been other times where it worked much more in the seller’s favor.
The risks and uncertainty can affect what buyers are willing to pay.
4. You Could Spend Money on the Wrong Fixes
I think, this is the biggest reason not to automatically choose as-is.
Suppose $8,000 of carefully selected work could reasonably improve your family's eventual outcome by considerably more than $8,000. In this case, and very often, that is money well spent.
The problem arises when buyers start looking at the home and not agreeing with what was fixed. Maybe the buyers see upgraded kitchen appliances great, but the house desperately needed new floors. This turns them off and that $8,000 is money down the drain.
Find out what really should be done from a pro
Ensure that the repairs and upgrades are something that will appeal to your eventual buyer, not to you.
So, Is Selling As-Is Actually Worth It?
The decision usually isn't as simple as comparing what the house could sell for as-is with what it might sell for after repairs.
Preparing the house costs money. It also takes time, may create additional carrying costs, and requires someone to coordinate the work.
On the other hand, selling as-is may mean accepting a lower price or limiting the number of buyers interested in the home.
That's why the better comparison is:
What will your family likely walk away with after considering the cost, time, work, and risk of each option?
A house that might sell for $30,000 more after improvements isn't necessarily putting $30,000 more in your parent's pocket if getting there requires $20,000 in work, two additional months of expenses, and someone managing the entire process.
Likewise, selling as-is simply because it's easier doesn't make sense if a few relatively simple improvements could significantly change the outcome.
The goal isn't to spend the least or sell for the most. It's to figure out which option leaves your family in the best overall position.
Does Selling Your Parent’s House As-Is Make Sense?
Selling As-Is May Make Sense When...
√ The house needs substantial updating or repairs
√ Your family doesn't have money available for improvements
√ Your parent needs access to the home's equity relatively quickly
√ You're managing the house from outside Denver
√ Carrying costs are becoming significant
√ The likely return doesn't justify the work
√ Simplicity and certainty are priorities
Selling As-Is May NOT Make Sense When...
√ A small amount of work could substantially improve marketability
√ Your family has money available for worthwhile improvements
√ Improvements are likely to produce a worthwhile return.
√ Maximizing potential proceeds is the higher priority
√ The work can be handled relatively easily
√ Carrying costs aren't creating pressure
√ Your family has plenty of time before selling
You don’t need every reason for it to be the right decision. Everyone involved should analyze this as an option
Before You Spend Money, Start With the House As It Is
It’s easy to give advice saying
Don't renovate first and ask whether it was worth it afterward.
It should be a one-by-one decision that factors in costs, work, time, and return-on-investment. But selling your mom or dad’s home this way comes with risks. It’s important to start with
Seeing the house in its current condition - outdated decor, mounds of stuff, and not as clean as you’d like.
Consider what similar properties are selling for.
Identify what buyers are likely to care about.
Then determine which improvements, if any, are worth your family's money and effort.
Sometimes the answer is:
Prepare it for the traditional market.
Sometimes:
Do a few important things and leave everything else alone.
And sometimes:
Don't touch it. Sell it as-is.
You don't have to get the house ready before figuring out how you should sell it.