Selling a house as-is means the seller won't make repairs. It doesn't mean the seller can hide problems, and it doesn't mean the buyer can't inspect. Sellers choose as-is for good reasons: no money for repairs, an estate, a move, or just no energy left. Here's how I set up an as-is listing so it sells clean and doesn't fall apart in inspection week.
The short answer
List at a price that reflects the condition, disclose what the seller knows, and tell buyers up front that the seller won't do repairs. Buyers still get their inspection period and can still walk under the contract. A pre-listing inspection helps a lot: buyers see the issues before they offer, so there are fewer surprises and fewer renegotiations.
Step by step
- Have the money talk. Compare "fix and list" with "sell as-is." Get rough repair bids. Some fixes pay back. Many don't. Let the seller pick.
- Disclose honestly. The Colorado Seller's Property Disclosure still applies. As-is doesn't erase known defects. If the seller knows the furnace is failing, it goes on the form.
- Consider a pre-listing inspection. It shows buyers the real condition and builds trust. See pre-listing inspection.
- Price for condition. Use comps in similar condition, not the remodeled flip down the street. See how to price a listing.
- Say it in the listing. "Sold as-is. Seller will make no repairs. Inspections welcome." Clear words cut down wasted showings.
- Expect investors and owner-occupants. As-is homes attract both. Financed buyers may need the home to meet lender standards. FHA and VA have condition rules.
- Handle the inspection objection calmly. Buyers can still object or ask for a price change. The seller can say no to repairs. A credit or a price change sometimes saves the deal. See inspection objection.
- Compare to a cash sale. If the home won't pass any lender inspection, a cash route may be cleaner. See cash offer vs listing.
Fix first or as-is? A quick guide
| Situation | Usually better |
|---|---|
| Cosmetic only (paint, carpet) | Fix. Cheap and visible. |
| Major system near end of life | Often as-is, priced right, or offer a credit |
| Safety issue lenders flag | Fix or sell to cash buyers |
| Seller has no cash or time | As-is |
| Estate or out-of-state seller | As-is with pre-listing inspection |
How to explain it to your client
"Selling as-is means you won't fix anything, and we'll say that up front. It doesn't mean we hide anything. You still fill out the disclosure, and buyers still get to inspect. My suggestion: we do our own inspection first, so buyers see everything before they offer. Then we price it for its condition. You'll get fewer lowball surprises in inspection week."
Watch-outs
- As-is isn't a disclosure shield. Known defects must be disclosed.
- Lender condition rules. Some financed buyers can't close on homes with safety or habitability issues.
- Don't overprice. As-is homes priced like updated homes sit, then sell for less.
- Buyers can still terminate. The inspection right remains unless the buyer gives it up.
- Not legal advice. Ask your managing broker how your office handles as-is language.
Further reading
- The as-is sales process in Denver on kennarealestate.com
- Fix it first or sell it as-is on kennarealestate.com
This is training for real estate agents. It isn't legal advice. Check with your managing broker.
Questions
Can a buyer still inspect an as-is home?
Yes. As-is means the seller won't repair. The buyer's inspection rights under the contract still apply.
Does as-is mean the seller doesn't disclose?
No. Known defects still go on the disclosure.
Will as-is lower the price?
Usually, because buyers factor in repair costs. Pricing for condition gets it sold.
Can FHA buyers buy as-is homes?
Sometimes. The home still has to meet FHA property standards. The appraiser decides.
Should the seller still clean and declutter?
Yes. Clean and empty shows better and costs little.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.