Selling a House As Is in North Carolina

Your complete guide to selling a house AS IS in North Carolina. Discover what’s required from a seller and the steps to take for a smooth sale. Plus learn how much money you can expect to make selling your house as-is!

Table of contents

1. Selling a house as is in North Carolina
2. What does it mean to sell a house ‘as is’ in North Carolina
3. Why would you sell a house as is?
4. Signs of distressed property North Carolina
5. 10 steps to selling a house as is in North Carolina
6. How much do real estate investors pay for an as is house North Carolina?
7. Should I sell my house as is or fix it up?
8. Mistakes when selling a house that needs repairs North Carolina
9. How much will I lose if I sell my house as is North Carolina?
10. Final thoughts: Selling a house as is in North Carolina

Selling a house as is in North Carolina
How to sell a house that needs repairs North Carolina

Are you feeling overwhelmed with the idea of selling a property that needs repairs? Have you tried to fix it up, but just don’t have the time or money? Selling a house as-is can be a heavy burden for a seller and its often difficult to determine the home’s as-is value leading to uncertainties when evaluating selling options. The good news is that selling a house as-is can be done quickly and painlessly depending on the route you choose.

What does it mean to sell a house ‘as is’ in North Carolina?

Selling your house “as is” entails selling the property without making any repairs or improvements beforehand. In other words, selling in its current condition. While this approach can save significant time and money on fixing up the house, it may also result in a lower selling price for your home.

Tip From the Author
Selling a House As Is

Since 2017, I’ve been fortunate enough to close over 175 transactions with over 100 of these being “as-is” sales. What I’ve found is that more often than not, a seller who owns a house that needs significant repairs (such as roof, HVAC, windows, cabinets, siding, foundation, etc.), profits more from an “as-is” sale than sellers who choose to renovate the home. This isn’t always the case, of course, but it is the majority from my experience.

The reason for this is because of the holding costs a homeowner is responsible for when renovating the home. Not only are materials and labor at record high prices, but an owner is stuck paying utilities, taxes, insurance, and mortgage payments while renovations are being done. By the time these holding costs are added to the commissions and closing fees of a traditional selling method, it is common that the net profit is less than if they were to sell it as is from the beginning.

Note: For houses needing minor repairs (such as paint, carpet, etc.), I would recommend addressing these repairs before selling. The minor repairs often have a higher return on investment than the major repairs which are costly and time consuming.

We’ve been able to help Stacey and countless others sell as is. Hopefully these tips and information can be helpful to you too.

-Jason Hill, Freedom Choice Investments

Why would you sell a house as is?

Owning a home is part of the American dream. But maintaining a home has the potential to be an American nightmare. With home maintenance costs at an all time high, it now costs the average homeowner in America nearly $15,000 a year in hidden costs to maintain their home.

One deferred maintenance project can easily turn into a handful of others without proper planning and budgeting. This can be detrimental when it comes time to sell as the cost to repair all of the deferred maintenance can be overwhelming, leaving you the task of trying to sell a distressed property as is.

Signs of distressed property North Carolina

A distressed property is one that has deferred maintenance or damage to the property either from occupants or mother nature. Selling a distressed property in North Carolina is often the result of:

Deferred maintenance

The most common deferred maintenance items we see are old roofs, HVAC beyond their life expectancy, old faulty windows, and exterior wood rot.

Damage from occupants

Owner occupants can struggle maintaining their home if life events cause a homeowner to prioritize other financial obligations. But the most common occurrence for selling a damaged house is due to neglectful tenants.

Damage from pests and rodents

North Carolina’s warm and humid climate is ideal for wood destroying insects, especially termites. If termites are active and left untreated, they can destroy a homes structure in a matter of five to six years. Mice and rat infestations can also be common if trash is not properly disposed of.

Storm damage

North Carolina is the third most hurricane-prone state in the U.S. and even if you don’t own property at the coast, hurricane winds and rainfall can cause major damage statewide. Many homeowner’s learn the hard way that a typical homeowner’s insurance policy does NOT cover flood damage. This can lead to needing to sell your house as-is in North Carolina due to the insurmountable costs of repairing your home from a storm without insurance.

10 steps to selling a house as is in North Carolina

Selling a house as is often a new experience for a homeowner. We’ve been through the process hundreds of times with our clients so we’ve compiled a comprehensive check list to help you get the most out of your selling experience. Its possible to avoid some or all of these steps, but its important to prepare for every possible circumstance when selling a house as is.

1. Seek a professional opinion

You want to start by getting an understanding of your home’s current value and all potential costs and timelines you may encounter when selling your house as is.

Many buyers can exploit the fact that you’re selling distressed property. To prevent being taken advantage of, it is recommended to perform a comparative market analysis (CMA), which determines the value of your home by examining similar properties (comparables) in your vicinity. While you can enlist the assistance of a real estate agent for this task, you also have the option to perform it independently.

If you have additional funds available, you may opt to invest in a home appraisal. This method provides a more precise assessment of your property’s as-is market value.

Contacting a licensed general contractor to assess the condition of the property and provide an estimate of all repairs will help you get a financial picture of what’s ahead when determining your selling options.

If the home is tenant occupied, you may also want to contact a property manager to determine the process, costs, and timeline of eviction if it becomes necessary to sell.

2. Determine your goals

Your goals will determine what selling option is best for you. Are you looking for speed, convenience, or profitability? Maybe its a mix of all. The good news is there are options available that cater to each of these priorities.

3. Understand your selling options

You have two primary ways to sell a house as-is in North Carolina: sell directly to a cash buyer (investor) or use a real estate agent. Both have their advantages and disadvantages. Choose the method that is going to best fit your goals and timeline.

Sell as is to a cash buyer North Carolina

Sell as is with a realtor North Carolina

4. Obtain a home inspection before marketing

If feasible, it could be beneficial to have a licensed home inspector provide insights on all defects with your house. Depending on the extent of the damage, there may be a few items that you could address at an affordable price that could pay off for you later.

A good example of this could be an HVAC unit that is not producing cold air. Maybe your inspector finds that the AC unit is low on refrigerant. For a few hundred dollars to re-fill the refrigerant, you’ve avoided the risk of a buyer having concerns over an HVAC that is not cooling the house.

5. Address repairs (if necessary)

When selling a house as is in North Carolina, it’s essential to evaluate each repair based on whether the potential increase in value outweighs the associated costs. This evaluation will aid in deciding whether to sell the property in its current condition or to undertake necessary improvements before listing it for sale.

Pro-tip: When selling a house that needs repairs in North Carolina be sure to contact your insurance agent to see what your options are for filing a claim on any roof or water damage that a previous storm may have caused to help you save on out of pocket repair expenses.

6. Disclosures (if using realtor)

If you want to sell your house as-is with a realtor, its important to inform them of all known deficiencies, deferred maintenance items, and needed repairs prior to listing the house. This will give your realtor the information they need to come up with an accurate as-is list price, in turn, resulting in high competition for offers. It will also help avoid repair requests and price reductions from the buyer during due diligence.

To assist with this, all sellers in North Carolina are required to fill out a seller disclosure form to be submitted with the realtor’s public listing to prospective buyers. The Seller Disclosure form is a standard checklist form containing material defects and features of the property. It specifically provides information about the property that may negatively affect the value of the house. 

7. Marketing

If you plan to sell your house as is on your own, you can choose to market the house for sale by owner online. Online marketplaces such as Zillow, Facebook, and Craigslist are all viable options. For a more proactive marketing approach, you can search for local cash home buying companies in your area and reach out to them for a cash offer. Most cash buyers have a relatively straightforward process. You can simply visit their website or contact them by phone to request an offer.

When using a realtor to sell your house as is its important to appeal to the cash home buyers in your market. Start by setting a fair list price. This is one of the most common mistakes we see made when selling a houses as is. Make sure its a realistic price based on both the good and bad features of the home.

Pro-tip: Buyers using financing to purchase a house as is will likely perform inspections and the lender will require an appraisal to be performed. Both of these can trigger repair requests. Appraisal required repairs are non-negotiable. This is the banks way of lending on an asset they approve of.

For this reason, it can be advantageous to have your listing agent notate that cash will be the only term of financing considered in their public listing. And although The NC Realtors Standard Form Offer to Purchase and Contract notes that the property is being sold in its current condition, it is recommended that your realtor states in the MLS that the house will be sold AS-IS.

8. Solicit offers

When reviewing offers its important to consider not only the money being offered, but the additional benefits such as an all cash offer, buyer paid closing costs, no required repairs, non-refundable deposits, no fees, fast timeline, etc.

9. Negotiate

A cash home buyer that has viewed the home prior to submitting an offer should have no reason to negotiate.

However, a buyer procured through the MLS will likely perform an inspection during due diligence. If the seller chose not to disclose all known material defects (by marking ‘no representation’ on the disclosure form), these are bound to be uncovered at this stage. If they are uncovered after the offer was submitted, it is likely that the buyer will adjust or terminate their offer due to the findings.

10. Close

Once inspections are out of the way and offer terms are negotiated and agreed-to, you are clear to close. When selling a house as is to a cash buyer this can be within one to two weeks of initial contract.

How much do real estate investors pay for an as is house North Carolina?

If you plan to sell your house as is to a real estate investor, it is common for investors to pay no more than 70% of the homes fair market value (see 70% rule below). Depending on the seller’s motives, this may be an attractive option in exchange for the convenience and speed that an investor can offer (often closing in as little as seven days).

70% rule for house flippers

The 70% rule is a simple calculation many real estate investors use to determine their purchase price:

After-repair value (ARV) ✕ .70 − Estimated repair costs = Maximum buying price

That maximum buying price will give you an idea of how much an investor is willing to pay for a home that they plan on renovating and reselling. Going above that price could jeopardize a real estate investor’s profits.

Should I sell my house as is or fix it up?

While selling your North Carolina house as-is can be an enticing option due to the convenience it offers, it’s important to weigh the advantages and disadvantages of such a sale. Fixing up the property will result in a higher sales price, but it may not be worth the time and money for some sellers. Is the speed, convenience, and peace of mind of selling your house without making repairs worth the expected sales price? Ultimately, the choice is yours, but here are some pros and cons to help with your decision.

Advantages of selling a house as is in North Carolina

There are significant advantages to selling your house as-is in North Carolina. Here are the top three:

1. Save time and energy
   Selling your home as-is bypasses the need for time consuming home improvements and repairs, resulting in a quicker listing timeframe.
2. Relief of financial burden
   Repair and improvement costs can accumulate, particularly for fixer-upper properties. Opting to sell your house as-is can help you save money on out-of-pocket expenses preparing your house for a listing.
3. Simplified negotiations
   When transparency is conveyed from the outset of marketing your house as-is, you can reduce surprises and negotiations with the buyer leading to a smoother path toward closing the sale.
   

Disadvantages of selling a house as is in North Carolina

Although selling a home as-is offers advantages, it also comes with drawbacks. Here are the three main disadvantages you should take into account when selling a house that needs repairs in North Carolina:

1. Lower sales price
   Selling a damaged house with deferred maintenance will result in a lower sales price due to the added expenses a buyer is expecting to incur post closing. You’ll miss out on the “sweat equity” gained from making repairs and upgrades prior to listing your house.
2. Limited buyer pool
   The condition of your home significantly influences the level of interest from potential buyers willing to make an offer. Some buyers, especially first-time homeowners or those lacking extra funds for renovations, may be discouraged by properties listed in “as-is” condition. Many of these buyers prefer to pay a higher sale price for a home that requires minimal or no additional work.
3. Challenges in securing buyer financing
   Certain lenders may withhold mortgage approval for houses in poor condition or with significant defects. Consequently, a property being sold in a deteriorated state can pose challenges for buyers in securing financing, potentially prolonging the time it takes to sell.

Mistakes when selling a house that needs repairs North Carolina

For many homeowners, selling a house that needs repairs is a new experience, and therefore, and unsuccessful venture. Here are four of the most common mistakes we see when sellers are unable to sell their house as-is in North Carolina:

1. Asking too much for a damaged home

While obtaining top dollar is a primary objective when selling a house as is, setting an excessively high asking price can deter potential buyers in the real estate market.

Once you’ve assessed comparable properties and determined the estimated fair market value of your home, ensure your pricing aligns accordingly. In some cases, pricing slightly below market value can facilitate a faster sale.

A good rule of thumb is to subtract expected repair costs from the after repair value (ARV) of your home. This should give you a maximum suggested as-is list price. However, most house flippers are going to want to see an additional 10-20% (of the ARV) deducted from this to leave room for profit margins.

2. Waiting too long to sell a house that needs repairs

If your home is showing signs of deferred maintenance and you do not foresee the likelihood of addressing the repairs yourself, it is beneficial to sell sooner rather than later. It is common for deferred maintenance items to lead to further damage and more problems the longer you wait – many of which cannot be seen to the naked eye.

3. Not vetting your buyer

Selling a house that needs repairs can be complicated due to the financial considerations involved. It can become more complex if dealing with a fraudulent buyer. Be sure to research the credibility of your buyer to determine their financial capacity and experience buying distressed property. Read reviews online, ask to speak with past clients, and ask for proof of funds to help mitigate your risk.

4. Lack of disclosure to buyer

When selling your house as is, it’s crucial to disclose any known defects to potential buyers upfront. Avoid leaving them to discover these issues on their own, as it could jeopardize the sale. Many sellers are concerned that disclosing such problems will deter buyers. However, in most cases, honesty is appreciated by the buyer. While disclosing the necessary repairs is important, be sure to also highlight the property’s strengths as well.

How much will I lose if I sell my house as is North Carolina?

When selling your house as is in North Carolina you are narrowing your buyer pool to mostly real estate investors – or someone who plans to invest money into repairs in order to sell the house at a profit. Most real estate investors pay 30-70% of the homes fair market value, depending on the extent of repairs needed.

The amount you can anticipate for selling your house as-is in North Carolina will be influenced by several factors, including its location, size, and overall condition. A real estate agent can provide insights into the market and assess comparable properties sold in the vicinity, offering a clearer expectation of the price range you should consider.

Final thoughts: Selling a house as is in North Carolina

The process of selling a house that needs repairs is not the same for everyone. The condition of your home, current market conditions, and your personal motives will determine the best selling strategy.

In most cases, however, selling a house as-is in North Carolina is fairly popular and distressed properties are sought after by many real estate investors. If time is of the essence, homeowners should prioritize cash buyers and real estate investors who are able to close quickly.

These findings apply to all cities and towns in North Carolina, including Raleigh, Durham, Fayetteville, Johnston County, Sanford, Burlington, and surrounding areas.

Author: Jason Hill

I am a seasoned real estate agent and investor with nearly a decade of experience buying and selling North Carolina homes in as-is condition. As the founder of Freedom Choice Investments my mission is to deliver simple and hassle free selling solutions to North Carolina homeowners. With the ability to either list your house or buy it as-is we have a unique offering that caters to those looking for ways to sell their house as-is in North Carolina.