The part that surprises people
Condition decides who is even allowed to buy your house.
Most buyers need a mortgage, and most mortgages come with condition requirements. An
appraiser working on a government-backed loan will flag things like a failing roof, no
working heat, exposed wiring, missing handrails or significant water damage, and the
lender can refuse to fund until they are fixed.
The effect is that a house in poor condition quietly loses most of its buyers. You are
left with cash buyers and renovation loans, which is a far smaller pool, and a smaller
pool means less competition and a lower price.
This is why "just list it as-is and see what happens"
often disappoints. It is not that nobody wants the house. It is that the people
who want it cannot get financing on it.