You’ve probably seen it in a property description: 

“Sold As-Is.”

But what does that actually mean for buyers and sellers? Is it a red flag—or just real estate reality?

🧾 The Definition: No Repairs, No Promises

Technically, every property is sold as is. However, when a property is marketed as being sold 'As Is" it means the seller is offering the property in its current condition, and is not agreeing to make repairs or offer concessions based on inspections.

But—and this is key—it doesn’t mean the buyer is waiving their right to an inspection.

Think of “as-is” as the seller’s way of saying:
“What you see is what you get. I’m not fixing anything.”

Buyers can and should still inspect the property, and can walk away during the contingency period if they don’t like what they find. 

🧠 Misconceptions About “As-Is”

1. It doesn’t waive disclosure laws.

In Virginia and many other states, sellers, with a few exceptions, must still issue a property disclosure statement. Virginia is known as a 'caveat emptor' (latin for buyer beware) state, which means it is up to the buyer to do their due-diligence. The Virginia property disclosure issued by the seller doesn't really disclose any known material defects. Agents, especially listing agents representing the seller, are held to a higher standard and need to disclose any known, adverse, material, defects with the property. 

2. It doesn’t mean the home is falling apart.

Some “as-is” homes are in excellent shape. Others may need major repairs. Sellers might list “as-is” for reasons like:

• It’s an estate or inherited property

• They’ve moved and don’t want to manage repairs remotely

• They want a fast, no-hassle closing

So while it can signal risk, “as-is” doesn’t always mean disaster—it just means buyers need to do more due diligence

🔍 What Buyers Should Do

1. Always schedule a home inspection.
   Even if the seller won’t fix anything, the inspection gives you a clearer picture of what you’re walking into—and can be a deal breaker if issues are too costly. If you want to make your offer more competitive, do a pre-offer inspection. That way you know what you are getting and don't need to include a home inspection contingency in the offer. 

2. Understand the financing implications.
   Some loans (like FHA or VA) require the property to meet minimum condition standards. If the home needs significant repairs, it may not qualify for certain financing—unless the buyer pays cash or uses a renovation loan.

3. Budget for repairs.
   Factor in the cost of any visible and anticipated repairs into your offer price. A “cheap” condo with a $10,000 HVAC issue may not be such a deal after all.

4. Negotiate strategically.
   Even in “as-is” deals, buyers can sometimes negotiate price reductions after the inspection—even if the seller says upfront they won’t fix anything. It’s just not guaranteed.

🏠 What It Means for Sellers

Listing “as-is” can be a smart move if:

• You don’t have time, funds, or interest in handling repairs

• The property is dated or in poor condition

• You’re managing an estate sale or tenant-occupied property

But it may also limit your buyer pool or trigger lower offers, since some buyers will assume problems (even if there aren’t any).

If the property is in decent shape, it may be worth avoiding the “as-is” label and just declining to make repairs during negotiation instead.

☑️ "As Is" Clause

"As Is" can mean different things to different people so there is a clause in an addendum to give it more specificity. There are five checkboxes to better define a particular aspect of "As Is". The five options are: 

• All clauses pertaining to delivery of Property free and clear of trash and debris and broom clean are deleted. 
• Buyer assumes responsibility for compliance with all laws and regulations regarding smoke detectors.
• All clauses pertaining to termites and wood-destroying insects are deleted.
• All clauses pertaining to Seller’s compliance with all orders or notices of violation of any county or local authority are deleted.
• All requirements for Seller to comply with Property Owners’ or Condominium Owners’ Associations notices of violations related to the physical condition of Property are deleted.

 One or more can be checked. If you are working with an agent that simply writes 'property sold as is' in the contract, you are working with the wrong agent! Lack of clarity in a contract can lead to problems further along in the process. 

📌 Final Thought

“As-is” can be a strategic listing decision—or a warning sign, depending on the context. The key is understanding what it does and doesn’t mean—and never skipping your due diligence.