Real Estate Investment Returns When Selling As-Is

Selling a property can be one of the biggest financial decisions an investor makes. When it comes to selling as-is, the stakes are even higher. Do you take the quick exit and forgo renovations, or invest in improvements to fetch a higher price? Let’s break this down.

Why Investors Consider Selling As-Is

Time. Money. Convenience.

These are often the reasons. When you sell as-is, you’re telling buyers you won’t make repairs. That can be appealing if you’re managing multiple properties, dealing with an inherited home, or trying to exit a slow-performing investment.

But is it worth it?

How Much Less Does an As-Is Property Sell For?

According to Revive Real Estate, sellers who list their homes as-is typically net 10–20% less than if they made the property move-in ready. So, a $300,000 property might only bring in $240,000–$270,000.

iBuyer confirms this same range, attributing the price gap to repair costs, buyer uncertainty, and the added risk buyers take on.

The Shift in 2025: Discounts Narrowing

A recent Better Homes & Gardens report using Zillow data notes that fixer-upper properties in 2025 sell at an average 7.3% discount—smaller than the typical 10–20% gap seen in previous years. This suggests the market might be tightening, but selling as-is still carries a meaningful trade-off.

When Selling As-Is Makes Sense

1. Hot Market Conditions

If the market is surging and inventory is low, buyers may overlook imperfections. They’re often willing to pay more just to secure a property.

2. Financial Liquidity

Sometimes, holding a property is more costly than selling quickly. Taxes, insurance, utilities—all eat into returns.

3. Distressed or Dated Properties

If the cost of renovations exceeds what you’d recoup, it may not be worth the investment.

4. Out-of-State or Inherited Properties

Distance makes renovations harder. Selling quickly, even at a discount, can be simpler.

For example, those selling a Texas home often weigh these same factors, especially when relocating or managing multiple properties.

How to Evaluate ROI Before Selling As-Is

Here’s a simple framework:

Step 1: Estimate Post-Renovation Value (ARV)

Find comparable properties (comps) in your area. What are updated homes selling for?

Step 2: Deduct Renovation Costs

Factor in materials, labor, permits, and any carrying costs during construction.

Step 3: Consider Market Trends

Data from Attom shows that U.S. home sellers earned a median profit of $112,000 in 2022, with an ROI of 51.4%. This highlights how much you could give up by choosing an as-is sale.

Step 4: Compare Scenarios

• Sell As-Is: Quick sale, but likely at 10–20% below market.
• Renovate Then Sell: Higher price but longer timeline.

Put real numbers on both paths. Which one gives you a better return after all expenses?

The Long-Term Perspective

Real estate doesn’t always deliver massive annualized returns. An Oxford study found that after costs, residential properties yield around 2.3% per year and agricultural properties about 4.5%. With numbers like these, selling at a discount can make a big dent in long-run returns.

Tips to Maximize Value Even If Selling As-Is

1. Declutter – A tidy space photographs better.
2. Disclose Clearly – Transparency builds trust.
3. Stage Lightly – Small touches, like fresh paint, can soften flaws.
4. Price Smartly – Align your price with current market data.
5. Work With Professionals – Agents familiar with as-is sales can guide strategy.

Case Studies: Real-Life Outcomes

Case Study 1: The Investor Exit

Maria owned a three-bedroom rental in Phoenix that needed $40,000 in updates. Comps for renovated homes were $320,000. Her as-is offers came in around $270,000. After crunching the numbers, she chose to sell as-is, pocketing $270,000 immediately rather than sinking cash and time into renovations. Her net return was smaller, but she redirected capital into another deal quickly.

Case Study 2: The Wait-and-Repair Approach

James inherited a property in Atlanta. Instead of taking the $200,000 as-is offer, he invested $35,000 in repairs. Six months later, he sold for $280,000. After expenses, he cleared $45,000 more than he would have with an as-is sale.

Market Data Snapshot

• As-is discount: 10–20% (Revive, iBuyer)
• Fixer-upper discount in 2025: 7.3% (Better Homes & Gardens)
• 2022 median home profit: $112,000 (21% return) (Attom/AP)
• Long-term net returns: 2.3% residential, 4.5% agricultural (Oxford)

Final Thoughts

Selling a property as-is isn’t automatically a bad decision. It’s a trade-off. Fast cash versus potential higher profit. Your decision comes down to market conditions, available capital, and your investment timeline.

Run the numbers. Study the comps. Then decide whether speed or squeezing out every dollar aligns with your goals.