Should You Sell Your Home As Is What Sellers Need to Know
Over the last twenty years I have helped countless homeowners consider whether selling a home as is makes sense for their situation. Many are surprised to learn that as is does not mean the same thing in every transaction and it rarely works out exactly the way they expect. One seller in a recent article shared that he did have regrets about selling as is and his story is a perfect example of why sellers need clarity before choosing this route.
What As Is Really Means
As is is not a legal term it is a contractual term and every contract defines it differently. In general it means the seller makes no guarantees about the condition of the home and does not plan to make repairs. The buyer accepts the property in its current state but the details depend entirely on the language in the agreement. Different sections of the contract like inspections fixtures disclosures attorney review and appraisal requirements all influence how as is works in practice. This is why it is critical to work with a realtor or attorney who understands how those sections interact.
Why Many Sellers Choose As Is
Inherited homes and estate sales are common as is situations especially when the seller never lived in the property or lives far away. Sometimes sellers choose as is for personal convenience or financial limitations. Other times the cost of renovations will not offer a positive return because of location or the extent of damage. Strong seller markets can also encourage as is sales since sellers feel they have leverage.
A Real Seller Story
One seller inherited his parents home a large older property in Kentucky that had not been updated in fifteen years. He chose to sell as is believing buyers would value the land more than the house. He listed at six hundred fifty thousand dollars received an offer of six hundred thousand and negotiated to six hundred twenty five thousand. He assumed selling as is would mean a smooth easy sale but soon faced a long list of buyer questions and concerns ranging from septic lines to oil tanks to future gas line installation. Then right before closing the buyers demanded asbestos inspections and hinted at major price reductions. When he reviewed the contract he realized they had agreed to buy the home without repairs. After some tense days the buyers backed down and the closing finally happened. While the seller felt relieved he admitted he did regret selling as is because it did not save him as much hassle as he expected and he accepted a lower price to avoid managing repairs.
Top Advantages of Selling As Is
Convenience
You avoid managing contractors quotes repairs and scheduling. The buyer handles the work after closing.
Faster Closing Timeline
Without repairs delaying the process the timeline can move quickly especially with cash buyers.
Potentially Lower Liability
In situations where the seller never lived in the home like inherited or foreclosure properties liability can be reduced because the seller has limited knowledge of the condition.
No Upfront Costs
The buyer takes on the burden of repairs materials and labor after closing.
Less Negotiation Over Repairs
In many as is contracts the buyer can inspect but if they proceed they cannot request repairs or credits.
Major Disadvantages of Selling As Is
Smaller Buyer Pool
Buyers often lose interest when they see as is on the listing even when the home is in good shape. They worry about hidden problems and assume high repair costs.
Lower Offers
Sellers usually receive lower offers because buyers mentally inflate repair costs and adjust their numbers based on uncertainty inconvenience and financing limitations.
As Is Is Not Always As Is
There are three major situations where as is does not hold up. First when the buyer uses financing the appraiser may flag issues that must be repaired before the lender approves the loan. Government backed loans like FHA VA and USDA have even stricter inspection standards. Second some cities require local pre sale inspections and certain repairs before transfer which can override as is terms. Third homeowners associations may require compliance with rules and repairs before a sale even if the buyer agrees to as is.
Longer Time on Market
Because fewer buyers pursue as-is homes the property may sit longer. As days on market increase carrying costs like mortgage payments taxes insurance utilities and maintenance add up and can reduce your final net. This is especially damaging because the first 14 days on the market are when buyer attention and leverage are at their highest.
Seller Disclosures Still Required
As is does not remove your legal responsibility to disclose known defects. Disclosure laws vary by state so work with your realtor or attorney to make sure you complete the required forms accurately.
How to Price an As Is Home
Pricing is part of your marketing strategy. The more buyers you attract the better your result. Online price estimators are not reliable tools for this. A comparative market analysis from a local realtor will consider the home condition required repairs market trends and buyer expectations. They can help you find the sweet spot between attracting strong interest and reflecting the true condition of the home.
Key Takeaways
- As is is a contractual definition and varies by agreement.
- It offers convenience but often leads to lower offers and a smaller buyer pool.
- Lenders cities and HOAs can require repairs even in as is sales.
- Disclosures are still required and liability still exists for known issues.
- A realtor can help determine if as is is the right strategy and how to price effectively.
