Owning a house that needs major repairs can feel overwhelming — especially in California, where construction costs are among the highest in the nation. Whether it’s a leaking roof, cracked foundation, or outdated electrical system, the question many homeowners face is simple:
👉 Should you fix it or sell it as-is?
In many cases, investing in major repairs before selling isn’t worth the cost or stress. But you do have options — and understanding them can help you make the smartest financial decision.
In this guide, we’ll break down how to sell a house that needs major repairs, the pros and cons of fixing versus selling as-is, and how to get a fair price even if your property isn’t perfect.
(For a complete breakdown, see our 2025 Guide to Selling a House As-Is in California.)
Why Homeowners Choose to Sell Instead of Repair
Major home repairs can quickly spiral into tens of thousands of dollars — and that’s if everything goes smoothly.
Here’s why many California homeowners decide to sell instead:
- Repair costs are too high: According to HomeAdvisor, roof replacements in California average $10,000–$25,000, while foundation repairs can easily exceed $30,000.
- Construction delays: Permitting, inspections, and labor shortages can drag projects out for months.
- Uncertainty: You never know what additional issues will pop up once repairs start.
- Time pressure: Life events like relocation, divorce, or inheritance often require a faster solution.
Instead of sinking money into uncertain renovations, some homeowners choose to sell their house as-is — avoiding repairs altogether.
Step 1: Understand What “Major Repairs” Mean
Not all repair needs are created equal. Buyers and lenders treat some issues as “cosmetic,” while others are considered “major defects.”
Examples of Major Repairs:
- Foundation cracks or settling
- Roof leaks or full replacement needed
- Electrical wiring not up to code
- Plumbing system failures or leaks
- Mold, water, or fire damage
- Termite infestation or structural decay
- HVAC system replacement
These issues can scare away traditional buyers, especially those relying on FHA or VA loans, since these programs require the home to meet minimum property standards.
If your home has one or more of these problems, selling as-is may be your best move.
Step 2: Evaluate Repair Costs
Before deciding how to sell, get a rough idea of what repairs would cost. You can:
- Get multiple contractor estimates (even ballpark numbers help).
- Use tools like Remodeling Magazine’s Cost vs. Value Report to estimate returns.
- Compare your potential renovation budget against your expected sale price.
Tip: The average California homeowner spends about $48,000 on major home repairs — but recoups only 60%–70% of that investment when selling, according to Zillow Research.
In other words, spending $50,000 in upgrades might only add $30,000 to your sale price.
Step 3: Explore Your Selling Options
When selling a house with major repairs needed, you typically have three main options:
Option 1: Fix and List Traditionally
If your home only needs moderate repairs and you can afford to fix it, listing it on the MLS may bring the highest sale price.
However, this route comes with:
- Contractor management and potential delays
- Out-of-pocket expenses for materials and labor
- Extended timelines (3–6+ months)
- Appraisal and inspection risk
Example: A San Diego homeowner spent $40,000 renovating before listing. It took 5 months to sell, and after paying commissions and closing costs, their profit was only $5,000 higher than what a cash buyer had originally offered.
If you can handle the repairs and wait for the right buyer, this method might work — but it’s not ideal for everyone.
Option 2: List the Property As-Is
You can still list your house on the MLS “as-is,” disclosing that no repairs will be made. This attracts investors and flippers who expect to handle renovations themselves.
Pros:
✅ Wider visibility on public sites
✅ Some buyers may offer close to market value
Cons:
❌ You’ll still pay agent commissions (4%–6%)
❌ Appraisals may fall short
❌ Buyers can back out after inspections
Even though you’re not fixing anything, traditional sales can still take 60–120 days to close.
Option 3: Sell Directly to a Cash Buyer
Selling directly to a cash buyer or investor is the fastest and simplest way to sell a house that needs major repairs.
These buyers purchase homes in any condition — fire damage, foundation issues, or even homes stripped to the studs. They skip inspections, appraisals, and financing delays.
Benefits:
✅ No repairs, cleaning, or showings
✅ Close in as little as 7–14 days
✅ No commissions or closing costs
✅ Guaranteed sale — no fall-throughs
Example: A homeowner in Riverside had $80,000 in foundation and plumbing issues. They sold their home to a local investor for $520,000 and closed in 10 days, saving months of stress and over $10,000 in carrying costs.
Step 4: Be Honest in Your Disclosures
In California, you’re legally required to disclose known property defects, even when selling as-is. This includes structural, electrical, or plumbing problems.
Failing to disclose could lead to legal issues later.
For full details, see the California Department of Real Estate’s Seller Disclosure Requirements.
Transparency helps you avoid lawsuits — and builds trust with buyers who already expect the home needs work.
Step 5: Understand What Affects Value
When selling a house with major repairs needed, value depends on three main factors:
- Extent of the damage – Cosmetic issues are minor; foundation or roof damage is major.
- Neighborhood and demand – Homes in desirable areas can still attract investors despite condition.
- Local market trends – In a hot market, even fixer-uppers move fast; in a slow one, they sit.
According to Redfin, distressed homes in California sell for 20%–30% below comparable move-in-ready homes — but can still move quickly with the right strategy.
Step 6: Highlight the Property’s Potential
Even if your home has serious issues, focus on what’s working:
- Location (proximity to jobs, schools, or beaches)
- Lot size or zoning potential
- Strong rental or redevelopment potential
Use words like “investor special,” “fix-and-flip opportunity,” or “high equity potential.”
These attract buyers who see beyond the current condition and focus on future value.
Step 7: Prepare for a Faster Sale
To speed things up, follow these tips:
✅ Have the title clear and documents ready (mortgage statement, deed, utility bills)
✅ Disclose all known issues upfront
✅ Be realistic about pricing — focus on convenience and speed
✅ Work with buyers experienced in as-is purchases
The smoother the process, the faster the closing — often in under 2 weeks.
Should You Repair or Sell As-Is?
Here’s a quick comparison:
| Factor | Fix and List | Sell As-Is |
|---|---|---|
| Cost | $20K–$100K+ | $0 |
| Time | 3–6 months | 7–30 days |
| Risk | Buyer may back out | Guaranteed close |
| Effort | High | Minimal |
| Profit | Higher (if repairs go well) | Lower but faster |
If your home needs major repairs — not just touch-ups — selling as-is is often the smartest financial move.
Final Thoughts
Selling a house that needs major repairs doesn’t have to be stressful or expensive. You don’t need to pour money into costly renovations or gamble on the market.
At Mrs. Property Solutions, we buy homes as-is — no repairs, cleaning, or waiting. Whether your property has fire damage, foundation issues, or extensive wear and tear, we’ll make a fair cash offer and close on your timeline.
📞 Call or text (602) 376-8391 or visit our website to get your no-obligation offer today.