Selling a House ‘As Is’ in Tennessee

Are you curious about selling a house “as is” in Tennessee? Whether you’ve got a fixer-upper or recently inherited a relative’s home, sometimes the goal is to skip repairs, get a fair offer, and move on.

“The number one reason most people try to sell their home “as is” a lack of funds to do repairs. A lot of people don’t have the money — they’ve got equity in their home, but they have no way of accessing it,” says Eddie Crosslin, an agent with Crye-Leike Real Estate Services.

Crosslin works with his wife, Melinda Crosslin, at Crye-Leike. Melinda is a top-selling agent in Tennesee who completes 18% more sales than the average agent in the state.

“And they’re short on cash, you might say. Or don’t know how, they may not know contractors, or they’re scared or leery of hiring someone and losing money,” Eddie says.

However, selling a house “as is” usually means accepting a lower offer, and it doesn’t always prevent buyers from trying to negotiate savings. Let’s take a closer look at how to sell a house in Tennessee, your options for getting an offer, and what to expect from the process.

Fast facts about selling a house ‘as is’ in Tennessee

Median sales price in Tennessee $371,900 (November 2023)
Average days on market (DOM) for Tennessee 48
Disclosures “The Residential Property Disclosure Act in Tennessee Code Annotated § 66-5-201 to 210 requires most sellers of residential real estate to complete a disclosure statement.”
MLS has a field to mark a listing “as is”? Yes
Is a real estate attorney required? Tennessee attorneys are not considered essential for closing in Tennessee
Real estate transfer taxes? 0.37%

What is ‘as is’ condition in real Tennessee?

“As is” is a type of home sale where it’s understood that no improvements will be made to the property. When selling a house, “as is,” the seller is choosing not to entertain buyer requests to complete repairs or provide a credit for fixes.

An as-is sale may also indicate that the functionality and longevity of certain home components, such as a stove on its last legs or an older roof, is not guaranteed.

When selling a house “as is,” the general condition of the property should already be accounted for in the home’s purchase price to the best of the seller’s knowledge.

“Keep in mind, a year ago, the market was so hot everyone sold as-is because buyers were willing to take the properties—any buyer was happy to get one of the contracts. With our market currently, the buyers are a little choosier, [because] they can be, and they’re still paying top dollar, but they’re not going to pay 20-30 thousand over the asking price,” Eddie adds.

Which types of homes are sold ‘as is’?

Homes sold “as is” often need work or are cosmetically outdated. It’s not a label you’ll likely put on a listing in pristine, move-in-ready condition.

“As is” sales often attract investors searching for their next flip or buyers seeking a bargain, perhaps on a home in a great location with lots of potential.

What problems do you have to disclose in Tennessee?

Selling a house “as is” in Tennessee doesn’t mean sweeping known problems about the house under the rug.

A good time to fill out the Tennessee Property Condition Disclosure is before listing your home or requesting an offer so that you know it’s taken care of.

According to the document, anyone transferring title to residential real property must provide information about the condition of the property.

The form will walk you through documenting what you know about environmental hazards, features shared in common with adjoining land owners, structural modifications or other alterations or repairs.

You’ll also be prompted to fill out information about

  • Interior Walls
  • Roof
  • Ceilings
  • Basement
  • Floors
  • Foundation
  • Windows
  • Insulation
  • Plumbing
  • Central Heating
  • Sewer / Septic Heat Pump
  • Electrical System
  • Central Air
  • Exterior Walls

No matter what method you choose to sell your home, you must make these disclosures to the best of your ability. However, Tennessee does allow certain exceptions for sellers who haven’t lived in the home within the three years before closing.

“We have a Tennessee residential property condition disclosure. And if they have lived in the property then they are required to disclose any defects that the property might have. And if they don’t, they could end up in a lawsuit for not disclosing the things that there could be, potentially, proven that they’re aware of,” says Melinda Crossman.

Crossman adds that investors who have never lived in the property have some leeway regarding disclosures.

“If an investor has never lived in the property, they don’t have to complete a full disclosure. They can state that they have not lived in the property. There’s a box that they check that they haven’t lived in the property. So, it’s kind of a “Get out of jail” card for the investors that are selling,” she adds.

Review your options to sell ‘as is’ in Tennessee

The main options to sell a house ‘as is’ include:

List ‘as is’ with the help of a real Tennessee agent

A Tennessee agent can assist in listing and selling a home “as is.” An agent gives simple presentation tips to improve marketing, helps to set an appropriate price that reflects the home’s condition, and works to find a buyer willing and eager to buy your home in its current Tennessee.

Sell directly to a cash buyer

Someone needing to sell their home “as is” can also work directly with a property investor or house-buying company rather than list, where it may be difficult to get an offer from a limited buyer pool.

We Buy Houses operations buy “as is” at a discounted rate and generally seek out homes needing significant repairs. These companies can help sellers cash out quickly, and many will cover a seller’s closing costs.

Steps to list ‘as is’ with the help of a Tennessee real estate agent

Find an agent willing to list the home ‘as is’

Your choice of real estate agent always matters, but especially when selling a property “as is.” It’s important to find the right match. You’re looking for an agent who doesn’t shy away from listings that need a little TLC and maybe has a strong network of investor connections.

Your agent should also be willing to go the extra mile on marketing. Considering 80% of Americans say they would prefer to buy a move-in ready home, an “as is” sale likely has a reduced buyer pool from the start.

Consider a pre-listing inspection

A pre-listing home inspection is the same as a standard one, except the seller pays for it before listing their home. It may sound like a counterintuitive step for an as-is sale, but getting the inspection results upfront can illuminate any issues that could impact the home’s value and inform an accurate pricing strategy.

If a buyer requests further deductions to the price based on their inspection, you may be able to point to how the estimated cost of certain repairs was already baked into the list price.

“They’re gonna find out exactly what’s wrong with the property and be able to address those items without a surprise down the road,” says Eddie Crosslin.

Crosslin adds that if a seller does a pre-listing inspection and ends up performing any necessary repairs, it can be a great selling point.

Melinda Crosslin cautions that a pre-listing inspection can be a double-edged sword for sellers.

“if they’re selling as-is, they may not want to know everything. If they don’t disclose, it could potentially make them liable if they find [something wrong] out and then don’t disclose. So, we don’t usually suggest that they do [a pre-listing inspection],” she says

Price to reflect ‘as is’ condition

The median sale price for homes in Tennessee hit $371,900 in October 2023, a 4% increase over the year prior.

Eddie Crosslin suggests pricing the property at a price similar to other homes in the market will help it sell faster, rather than trying to get top dollar for the home.

“Don’t list too high. List it with comparable sales that have sold and closed, and you’ll get a higher offer. Even in our market today, we can still get multiple offers if it’s listed at the right price,” he says.

Melinda Crosslin notes that price will have an impact on how long the home takes to sell.

“It also will affect the days on market. We can look at comparables for as-is sales in the area and price it according to what other properties have sold for,” she says.

You can start with a free estimate from HomeLight’s Home Value Estimator (HVE).

Our HVE combs public data, including tax records and assessments, and pulls recent sales records for other properties in your neighborhood. Using a short questionnaire, we also factor in specifics about your home, such as the property type and described condition. Input your address, and we’ll give you a preliminary home value estimate in under two minutes.

What's Your Tennessee Home Worth Today?

Tell us about your property and get a preliminary value estimate on your Tennessee home in as little as two minutes.

Do ever-so-light preparations

Even for as-is home listings in Tennessee, it’s recommended that sellers make basic improvements to the home.

Melinda Crosslin suggests ensuring the home’s major appliances are in working order, above all else.

“I would say, make sure that the major systems are working in order to be able to sell to end-user buyers, Federal Housing Administration and Department of Veteran’s Affairs loan buyers. Because they can definitely overlook cosmetic issues and those kinds of imperfections. But if the major systems are operable, they’re okay with it. It’ll attract more buyers,” she says.

Photograph to show potential

Your home listing warrants professional photography no matter what condition the property is in. A professional photographer will take steps to shoot each room from the best angle, ensure optimal interior and natural lighting, and edit for the ideal brightness and exposure.

A high-quality camera with a wide-angle lens is also essential to showcasing entire rooms rather than half or three-quarters of what’s there. For these reasons and more, professionally photographed homes can help earn homeowners up to a 47% higher asking price per square foot compared to houses marketed without professional photos.

Your Tennessee agent will almost always arrange for professional photos as part of the listing process.

Highlight the surrounding area

A home’s location will be important to buyers seeking out a home with potential. Mention in your as-is listing if your home is close to any of the following:

  • Downtown areas
  • Major employers
  • Parks and green spaces
  • Sports venues and entertainment districts
  • Waterfront views or access (ocean or a lake)
  • Highly rated schools
  • Access to outdoor activities
  • Public transportation

Include ‘as is’ in the listing

Unless you explicitly mention that your house is being sold “as is,” buyers will have no idea of your intentions with the listing. Other common descriptors mentioned in as-is listings in Tennessee include priced to sell, fixer-upper, handyman special, or a “call for investors.”

To balance the focus on as-is condition, work with your agent to craft a property description that highlights the best features of the home,

Understand buyers may still negotiate

Listing “as is” provides no guarantee that buyers won’t try to negotiate savings on their purchase, even on an asking price you felt was already reduced to reflect the home’s condition. One of your best defenses is an agent who takes a hard stance to prevent a deal from going south for the seller.

Be aware of minimum property standards for certain loans

When you place your home on the market, it’s hard to predict if your top offer will come from a cash buyer or a buyer pre-qualified for a home loan.

But if you end up working with a financed buyer, be aware that different mortgage types (such as conventional or government-backed FHA, USDA, or VA loans) have different minimum property standards. These are standards related to the overall condition of a property which will play a role in the willingness and/or ability of a lender to finance a buyer’s loan.

Before properties can be financed, their value and condition are typically examined by a Tennessee-licensed, independent appraiser contracted by the buyer’s mortgage company.

If you’re unsure whether your home will meet appraisal requirements, you can start by looking at the FHA minimum property standards. If your house complies with FHA, then it complies with most other lenders’ requirements.

Prioritize a cash offer if you receive one

On occasion, conventional lenders may even finance a fixer-upper property sold “as is,” it’s not impossible to finance a fixer-upper with an FHA loan. However, if you’re selling a house “as is” — especially one that needs heftier repairs — you may want to consider accepting a cash offer if you receive one. Cash eliminates the lender-ordered appraisal and the time it takes to close on the buyer’s loan, creating a faster and clearer path to settlement.

Pros of listing a home ‘as is’: 

  • Save time and money on prep work
  • Possibility of reducing negotiations from the inspection
  • Solution for out-of-Tennessee owners and inherited homes

Cons of listing a home ‘as is’:

  • Limited buyer pool
  • Expect lower offers
  • Negotiations and repairs aren’t always off the table

 

Steps to sell directly to a cash buyer

Now that we’ve covered the general process of listing a home “as is,” let’s discuss the alternative of working with an investor. While the process varies from business to business, the steps to selling your home to a house-buying company typically go something like this:

  1. Decision: A homeowner decides a traditional listing isn’t for them. Perhaps their house needs a lot of work, or they do not want to host any showings or open houses. They’re concerned about finding a buyer willing to purchase their home “as is” in its current location in Tennessee.
  2. Contact: A seller contacts a company that buys homes in their area and provides basic information about their home.
  3. Preliminary offer: At this stage, some house-buying companies will provide a preliminary offer subject to change after a house assessment.
  4. Assessment: The company schedules a walkthrough of the property to evaluate its condition, usually within 24 to 48 hours.
  5. Firm offer: The company makes a firm offer (usually within 24 hours, sometimes on-site after the walkthrough) which you can accept or decline. Most of these companies will not negotiate on price, so the offer is a take-it-or-leave-it scenario.
  6. Closing: If you accept the offer, you and the company will each sign the contract, and closing will begin. Some companies offer a large deposit or moving cost assistance; a few may even pay for the home upfront.
  7. Payment: The seller receives payment quickly, typically within seven days to a few weeks. This can vary by company, and sellers who work with a house-buying company often enjoy flexibility in selecting a move-out date that works for them.

If you aren’t sure where to get a cash offer, consider Simple Sale, a solution from HomeLight. With Simple Sale, you tell us a bit about your home, such as whether it’s a single-family or condo and how much work it needs. From there, we’ll offer you a full cash offer to buy your home in as little as a week.

Skip repairs

No need to call the roof inspector or drain your savings to replace the HVAC. HomeLight will provide an offer for homes in almost any condition.

Sell when it’s convenient

Want to get out right away? Or need a little more time to pack? Either way, we’re flexible. Pick a move date that works for your schedule within 30 days of closing.

Close with certainty

Cash buyers don’t need a lender’s involvement to purchase a home, meaning they can move nimbly and quickly compared to someone who needs financing. With Simple Sale, you can close in as little as 10 days, compared to the 30-60 days or longer it typically takes to close with a financed buyer.

Curious to know more about the Simple Sale experience? Hear it firsthand from one of our valued clients in the video below.

Additional We Buy Houses companies in Tennessee

Below we’ve compiled a list of some of the leading companies that purchase homes “as is” for cash in Tennessee and information about each.

TN HomeBuyers

TN HomeBuyers, established in 2002, offers to buy houses directly from homeowners looking to sell their property quickly. TN HomeBuyers has served thousands of customers in Middle Tennessee. The company specializes in buying various types of residential real estate, including single-family houses, condos, townhouses, and multifamily houses.

Locations: All over middle Tennessee.

Closing costs: Sellers pay no closing costs; TN HomeBuyers structures an offer so there are no out-of-pocket expenses.

New Horizon Home Buyers

New Horizon Home Buyers is a family-owned home-buying company that touts itself on trust, excellent customer service, and fair prices. They donate 5% of their profits to local organizations supporting individuals experiencing homelessness.

Locations: All over the United States, including Tennessee.

Closing costs: Sellers pay no closing costs; New Horizon Home Buyers structure an offer so there are no out-of-pocket expenses.

Integrity House Buyers

Integrity House Buyers, based in Clarksville, caters to homeowners seeking solutions for various situations, including foreclosure or burdensome properties. They buy houses directly, paying cash and closing quickly without fees or commissions.

Locations: All throughout Middle Tennessee.

Closing costs: Sellers pay no closing costs; Integrity House Buyers structures an offer so there are no out-of-pocket expenses.

Pros of selling ‘as is’ to an investor:

  • Save money on home preparations.
  • Sell fast — receive an offer in as little as a few days, and close as quickly as one to two weeks later.
  • Skip repairs. Most house-buying companies purchase properties in “as is” condition, even those that need major repairs.
  • No staging. No repeated showings. No open houses.
  • Arrange for a flexible move-out date.

Cons of selling ‘as is’ to an investor:

  • Offers are likely to be much lower. Investors and house-buying groups typically pay around 70% of what they estimate to be the home’s after-repair value.
  • Sellers will have little room to negotiate. Most cash buyer offers are going to be “take it or leave it.”
  • Although many home-buying companies are legitimate, some are not. It’s always a good idea to be vigilant about possible scams.

How much will you make from an as-is home sale?

There is no simple equation for calculating how much you’ll net from an “as is” sale. If you list on the market with an agent, you’ll need to account for the cost of agent commissions (around 5.8% on average) and other closing cost, such as title fees and taxes, but are likely to field higher offers from buyers and see more competition for the home.

“In our area in particular there’s a lot of people calling, ‘I want to buy your house. I’ll give you an offer’. It’s generally better for the seller to go ahead and list with a realtor in our area and pay the commission. They still are going to get more money and more than likely, multiple offers,” says Eddie Crosslin.

Different types of investors and house-buying companies also offer varying amounts for homes, largely dependent on their exit strategy. While fix ‘n’ flip investors usually pay around 70% of the home’s after-repair value, buy-and-hold investors who plan to rent out your property may be able to pay more.

In addition, investors are often willing to cover a seller’s closing costs which can add up to around 1%-3% of the sale price. HomeLight’s net proceeds calculator can help run through some possible selling scenarios and estimating your take-home pay.

Ready to sell your house in Tennessee?

While every home sale is different, you should now be familiar with the general process of selling a house “as is” in Tennessee.

Whether you choose to list “as is” with a Tennessee agent or work with a direct home buyer, a home doesn’t have to be in perfect condition to sell — so long as you provide disclosures as necessary, set the right price, and know what to expect going in.

Whenever you’re ready to take the next step, HomeLight would happily assist with your real estate needs. Connect with a top agent near you or get started with a cash offer from Simple Sale.

Header Image Source: (Ian MacDonald / Unsplash)