You can sell a house as-is without paying for an inspection. No federal or state law requires a seller to hire an inspector before listing, and as-is is a legally recognized way to transfer real estate in every state. What as-is does not do is erase your duty to disclose defects you already know about, override federal lead-paint rules, or guarantee the buyer’s lender will fund the loan without repairs. Those are the pieces most sellers trip over.
No Law Requires You to Pay for an Inspection
U.S. real estate law has never required a homeowner to fund a professional inspection before putting a property on the market. The traditional framework is buyer beware: the burden of evaluating the home’s physical condition sits with the person buying it. You can list based entirely on your own knowledge of the house.
Mortgage lenders generally require an appraisal to confirm market value, but an appraisal is not an inspection. The appraiser estimates what the home is worth; an inspector catalogs what is wrong with it. Buyers typically pay for their own inspection, which averages around $343 nationally and varies by location and size. Skipping a seller-funded inspection is a legitimate way to cut your upfront costs, and lenders do not penalize you for it.
As-Is Does Not Stop the Buyer From Inspecting
This is the single most misunderstood part of an as-is sale. Listing your home as-is tells buyers you will not fix things. It does not prevent them from looking. Most purchase contracts include an inspection contingency giving the buyer a window to hire their own inspector, review the results, and decide whether to move forward. If the findings are bad enough, the buyer can walk away and recover their earnest money deposit, even though the home was listed as-is.
Where as-is language matters is in the negotiation that follows. In a standard sale, a buyer who finds a cracked foundation or an aging roof might ask you to repair it or drop the price. In an as-is sale, you have already signaled you will not do that. The buyer’s choices narrow to accepting the condition, renegotiating the price, or canceling during the contingency period. Some buyers waive the inspection contingency to make their offers more competitive, but that is the buyer’s decision, separate from the as-is label itself.
You Still Have to Disclose What You Know
Selling as-is does not excuse you from telling the buyer what you know. A majority of states require sellers to complete a standardized disclosure form identifying known defects that would not be obvious during a casual walkthrough. These include problems like recurring water intrusion in a basement, past termite damage, a failing septic system, or structural issues you dealt with during your ownership. The form varies by state. The concept is universal: if you know about a problem, you have to say so.
The penalties for hiding known defects can be severe. Courts consistently hold that as-is language protects sellers only against defects they genuinely did not know about. Painting over water stains to conceal a leaking roof, covering foundation cracks with fresh drywall, or lying on the disclosure form exposes you to fraud claims after the sale closes. Remedies for buyers range from rescission of the entire sale to compensatory damages. Statutes of limitation vary by state, but buyers typically have several years from the date they discover the concealed defect to file suit.
Fill the disclosure form out carefully. Vague answers like “unknown” on every line invite suspicion, and a court that later concludes you did know about a problem will treat the blanket “unknown” as evidence against you.
Lead-Based Paint Is a Federal Requirement
One federal disclosure requirement applies regardless of your state’s rules or anything written into the purchase agreement. If your home was built before 1978, you must give the buyer an EPA-approved lead hazard information pamphlet and disclose any known lead-based paint or lead hazards before the buyer is bound by the contract. You must also share any lead inspection reports you have on file and give the buyer at least 10 days to conduct their own lead inspection if they choose to.
The consequences for skipping this step are serious. Civil penalties for a knowing violation reach $21,699 per violation under the current inflation-adjusted schedule, and the buyer can sue for three times their actual damages caused by the non-disclosure.1Office of the Law Revision Counsel. 42 USC 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property An as-is clause does not override these rules.
When the Buyer’s Loan Forces Repairs Anyway
Here is where many as-is sellers hit a wall they did not see coming. If the buyer is financing with an FHA or VA loan, the property must meet minimum property standards before the lender will fund the mortgage. The appraiser doubles as a safety inspector in these transactions, and certain defects must be corrected before closing regardless of the as-is clause in the contract.
FHA appraisers flag issues that affect safety, security, and structural soundness. Common problems that require repair before an FHA loan can close include:
- Peeling paint in pre-1978 homes, which must be stabilized or removed due to lead risk
- Missing handrails on any staircase with three or more steps
- Roof deficiencies — the roof must have at least two years of remaining useful life
- Exposed wiring or faulty electrical, which must be corrected before closing
- Water damage or standing water in basements and crawl spaces, which must be dry and ventilated
- Non-functioning plumbing or heating; all major systems must work
VA loans carry similar requirements. The property must have safe drinking water, functioning sewage disposal, adequate heating, and a weathertight roof, and mechanical systems must be safe and operational.2Basic MPR Checklist – For Training Purposes Only. Basic MPR Checklist
You have a few options when a government-backed loan triggers repair requirements. You can agree to fix just the items the lender flagged, negotiate a seller credit at closing so the buyer handles the work, or hold out for a different buyer paying cash or using a conventional loan that does not impose these standards. Some lenders allow an escrow holdback where funds are set aside at closing to cover specific repairs completed within 60 days, though this is not available for major structural work like foundations or full roof replacements.
What As-Is Pricing Usually Looks Like
Homes sold as-is almost always sell for less than comparable move-in-ready properties, and the discount tracks the severity of the problems. Cosmetic issues like dated finishes or worn carpet might reduce the price by 5% to 10%. Moderate repairs such as an aging HVAC system or partial roof work tend to push the discount into the 10% to 20% range. Major structural or system failures can reduce the sale price by 20% to 30% below what the home would command in good condition.
Cash offer companies and investor buyers tend to offer even less, typically paying 70% to 85% of the home’s estimated after-repair value. That math translates to a discount of 15% to 30% off current market value before they spend anything on renovations. A seller credit at closing is a middle ground some sellers prefer: rather than hiring contractors and managing repairs, you reduce the price or contribute a fixed dollar amount toward the buyer’s closing costs, leaving the buyer to handle the work after they take ownership.
Paperwork That Protects You
Getting the documents right is what separates a smooth as-is sale from a lawsuit two years later. The core items:
- The state-specific seller disclosure form, filled out thoroughly
- An as-is addendum to the purchase agreement, clearly drafted and signed by both parties, stating the buyer accepts the property in its current condition with all faults
- A lead-based paint disclosure for any home built before 1978, including the EPA pamphlet and any existing lead inspection reports1Office of the Law Revision Counsel. 42 USC 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property
- Repair and maintenance records — receipts and documentation for major work done during your ownership
Repair records are not legally required in most states, but they build a clear record of what you knew and when. Gathering utility bills and service records for the furnace, water heater, and septic system helps the same way. If a dispute arises after closing, that paper trail is your best defense.