What is an As-Is Sale?
An as-is sale means the seller is offering the property in its current condition and will not make any repairs or provide credits for defects discovered during the buyer's inspection. The buyer accepts the property with all known and unknown issues. As-is sales are common in distressed property transactions, foreclosures, probate sales, estate sales, and wholesale deals.
What as-is does and does not mean
Does mean: The seller will not fix anything or negotiate repair credits. The price reflects the current condition.
Does not mean: The buyer cannot get an inspection. In most states, buyers retain the right to inspect the property and can cancel the contract during the inspection period or option period if they discover issues they are not willing to accept. As-is does not waive the buyer's right to due diligence.
Seller disclosure in as-is sales
Even in an as-is sale, sellers in most states are still required to disclose known material defects. Selling as-is does not remove the obligation to disclose a known foundation problem, roof leak, or other significant issue. It simply means the seller will not fix it.
Pricing as-is properties
As-is properties should be priced to reflect the cost of needed repairs plus a margin for the buyer's risk and effort. The standard approach: ARV minus repair costs minus buyer's profit margin minus assignment fee (if wholesaling) = purchase price.
For wholesalers
Virtually all wholesale deals are as-is transactions. The seller signs a contract at a discounted price, and the buyer accepts the property's condition. Your marketing package should include a thorough assessment of the property's condition and estimated repair costs so buyers can make informed decisions.