Yes, you can sell your house as-is in all 50 states. An as-is sale tells buyers you are offering the property in its current condition and will not make repairs or give credits for problems they discover. What it does not do is erase your duty to be honest about defects you already know about, and it usually costs you something on price and narrows the group of buyers who can get financing.
What As-Is Actually Means
An as-is clause in a purchase contract shifts the risk of the home’s physical condition from you to the buyer. By signing, the buyer agrees they are relying on their own investigation rather than your promises when deciding what the property is worth. You are relieved of most obligations to fix things after closing. The buyer accepts whatever they find.
Courts routinely enforce these clauses, with one critical exception: fraud. If you actively hide a known defect, such as painting over water-damaged drywall or lying on a disclosure form, the as-is clause will not shield you. It protects you from repair demands, not from the consequences of dishonesty.
Disclosures You Still Have to Make
Even in an as-is sale, the law requires you to disclose certain things. These rules exist at both the federal and state level, and the penalties for ignoring them can far exceed the cost of the repairs you were trying to avoid.
Federal Lead-Based Paint Disclosure
If your home was built before 1978, federal law requires you to give every buyer a lead warning statement, any lead inspection reports or risk assessments you have, and the EPA’s lead hazard information pamphlet. You must also give the buyer at least 10 days to conduct their own lead inspection before the contract becomes binding.1Office of the Law Revision Counsel. 42 USC 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property These requirements apply regardless of whether the sale is as-is, and they must be built into the purchase contract itself.2eCFR. 24 CFR Part 35 Subpart A – Disclosure of Known Lead-Based Paint and Lead-Based Paint Hazards Upon Sale or Lease of Residential Property
The penalties are steep. A knowing violation makes you jointly and severally liable to the buyer for three times their actual damages.1Office of the Law Revision Counsel. 42 USC 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property The EPA can also impose civil penalties of up to $49,772 per violation, an amount that adjusts upward for inflation each year.3Federal Register. Civil Monetary Penalty Inflation Adjustment
State Property Condition Disclosures
Most states require sellers to complete a property condition disclosure form listing known problems with the home. Forms vary, but they generally cover structural issues like foundation cracks or roof damage, major systems such as plumbing, electrical, and HVAC, environmental hazards like mold and asbestos, moisture and drainage history, and anything else that would meaningfully affect the property’s value or the safety of occupants. You are typically required to answer honestly and in good faith. You cannot dodge questions by claiming ignorance of problems you clearly knew about.
Failing to complete these disclosures, or completing them dishonestly, can give a buyer grounds to rescind the sale or sue you for the cost of repairs they would not have agreed to absorb. Thorough written disclosures are your best protection in an as-is sale because they create a paper trail showing the buyer knew what they were getting.
Radon
Roughly three dozen states require sellers to disclose known radon levels. The EPA’s action threshold is 4 picocuries per liter; at or above that level, the agency recommends installing a mitigation system.4EPA. Home Buyer’s and Seller’s Guide to Radon If you have test results, sharing them proactively strengthens your record. If a buyer asks for a fresh test, allowing it removes a potential source of post-sale disputes.
When As-Is Won’t Protect You
An as-is clause does not grant blanket immunity from lawsuits. It protects you from demands to fix problems the buyer could have found through their own inspection. It does not protect you from claims of fraud or intentional concealment.
Active concealment means taking steps to hide a defect you know about. Covering mold with fresh drywall is an example. Temporarily routing water away from a leaking basement wall on the day of the buyer’s inspection is another. If a court finds you deliberately concealed a material problem, the as-is clause is essentially void for that issue, and you can be held liable for the buyer’s repair costs, diminished property value, and sometimes additional damages.
Timing matters too. Statutes of limitations vary by state, but for fraud claims the clock often starts running when the buyer discovers the concealment rather than at closing. Your exposure can stretch years past the sale. Honest, thorough disclosures remain the most reliable way to keep these claims from arising at all.
What As-Is Usually Costs You on Price
As-is homes typically sell at a discount compared with similar properties in move-in condition. The size of that discount depends on the local market, how serious the home’s issues are, and how many buyers are competing. In a strong seller’s market the gap can be small. In slower markets, or when the home needs real work, sellers commonly see offers 5% to 15% below what a fully updated comparable would bring. Homes needing major structural or safety repairs can see steeper reductions.
The trade-off is speed and simplicity. Selling as-is avoids the cost and delay of making repairs yourself, which can matter if you are dealing with a relocation, inherited property, or financial hardship. Whether the discount is worth the convenience depends on your situation and the estimated cost of the repairs you would otherwise take on.
Why Buyers May Struggle to Get a Loan
One of the biggest practical consequences of selling as-is is a smaller buyer pool. Government-backed and conventional mortgages require the property to meet minimum condition standards, and a home with serious defects may not qualify.
FHA Loans
FHA-insured loans require the home to meet safety, security, and soundness standards. Common issues that cause an FHA appraisal to fail include roofs with fewer than two years of remaining life, chipped or peeling lead-based paint in pre-1978 homes, missing stair handrails, foundation cracks or settlement, non-functioning HVAC or electrical systems, and standing water in basements or crawl spaces. If any of these problems exist and you will not fix them, a standard FHA buyer cannot purchase the property.
There is a workaround. Buyers who want a home that does not meet FHA standards can apply for an FHA 203(k) Rehabilitation Loan, which bundles the purchase price and repair costs into a single mortgage, with repair funds held in escrow until the work is done.5HUD.gov. 203(k) Rehabilitation Mortgage Insurance Program Knowing this option exists lets you market to FHA buyers who might otherwise be locked out.
Conventional Loans
Conventional loans backed by Fannie Mae also require the property to be safe, sound, and structurally secure.6Fannie Mae. B2-3-01, General Property Eligibility If an appraiser flags safety or structural issues, the lender will typically require those items to be repaired before approving the loan. A property with unrepaired damage affecting its structural integrity or occupant safety will generally be ineligible for standard conventional financing.7Fannie Mae. B2-3-05, Properties Affected by a Disaster
Cash Buyers
Because of these financing hurdles, as-is properties often attract cash buyers, including investors, flippers, and individuals with liquid funds who do not need mortgage approval. If you receive a cash offer, ask for proof of funds before accepting. A legitimate cash buyer should be able to provide a recent bank statement or a letter from their financial institution confirming they have enough accessible, liquid funds to cover the purchase price. Mutual funds, stocks, and life insurance policies do not count as proof of funds because they are not immediately liquid.
How the Sale Actually Works
The mechanics of an as-is sale follow the same general process as a traditional sale, with some differences in paperwork and buyer expectations.
Preparing Disclosures and Documents
Start by completing your state’s property condition disclosure form, available from your state real estate commission or a licensed agent. Answer every question honestly. If your home was built before 1978, complete the federal lead-based paint disclosure and attach the required warning statement to the purchase contract.2eCFR. 24 CFR Part 35 Subpart A – Disclosure of Known Lead-Based Paint and Lead-Based Paint Hazards Upon Sale or Lease of Residential Property
Gather your property deed to confirm clear title, any existing surveys that define boundaries, and records on the age and condition of major systems like the roof, HVAC, plumbing, and electrical. Having this organized upfront signals transparency and helps keep deals from collapsing during due diligence.
Listing, Offers, and Inspections
Listing the property explicitly as “sold as-is” sets buyer expectations from the start. When you receive an offer, it should include an as-is addendum that formally states the buyer accepts the home in its present condition.
The buyer will typically have an inspection period, often seven to fourteen days, during which they can hire professionals to evaluate the property. In an as-is sale, the buyer keeps the right to walk away based on what the inspection turns up, but they cannot demand that you make repairs or drop the price as a condition of moving forward. The buyer either accepts the findings and proceeds, or cancels the contract and gets their earnest money back under the inspection contingency.
Closing
If the buyer moves forward, the sale goes to closing, where the deed is transferred and funds are exchanged. Depending on your state, closing may be handled by a title company, an escrow agent, or a licensed attorney.
Seller closing costs typically include agent commissions, title insurance, transfer taxes (ranging from zero to roughly 3% of the sale price depending on the state), prorated property taxes, and deed recording fees. Combined, these generally run between 8% and 10% of the sale price when commissions are included. The transaction concludes when the deed is officially recorded with the local government.
Tax Implications
Selling as-is does not change your federal tax obligations, but selling at a lower price can affect your tax picture in two ways.
Capital Gains Exclusion
If you owned and used the home as your primary residence for at least two of the five years before the sale, you can exclude up to $250,000 in profit from taxable income, or $500,000 if you file jointly with a spouse.8Internal Revenue Service. Topic No. 701, Sale of Your Home Because as-is homes sell for less, the lower sale price may keep your gain below the exclusion threshold, meaning you may owe no capital gains tax at all.
Losses Are Not Deductible
If you sell your primary residence for less than you paid, you cannot deduct the loss on your federal return. The IRS treats a personal home sale differently from investment property, and losses on the sale of your personal residence are simply not deductible.9Internal Revenue Service. Losses (Homes, Stocks, Other Property) Worth knowing before you accept a deeply discounted offer, because there is no tax benefit to offset a below-market sale of your home.