Staten Island, NY · Member since 2013 · 125 posts · 60 votes
A lot of homeowners hear "as is" and think it means no inspection, no negotiation, and no surprises. In my experience that's usually not how it plays out, so here's what I tell people.
As is means the seller isn't agreeing to make repairs. It doesn't stop the buyer from inspecting, and many buyers still will.
Buyers price in what they find. If the inspection turns up a roof or sewer line issue, expect the offer or a renegotiation to reflect it.
It doesn't erase disclosure rules. What a seller has to disclose depends on the state, so check yours before you list.
Financing matters. Some loan types have property condition standards, so a house with major issues may only work for cash or renovation loan buyers, which narrows the pool.
Price it like it's as is. Comparing your number to renovated sales down the street is the fastest way to sit on the market.
For the investors and agents here, what's the biggest misunderstanding you see from sellers who want to sell as is?
From the buyer's side, the biggest misunderstanding is that 'as is' protects the price. It doesn't. It just moves the repair cost into my math. When I buy as-is in Memphis, I start at what the house is worth fixed up — my ARVs run $180K to $265K — then subtract the full rehab, holding costs, and my margin. If a roof or sewer line shows up, that number comes straight off the offer. Sellers also think as-is means a fast, clean close at their number. I close fast and I don't put earnest money down, but the price still has to leave the rent covering the payment at the 1% rule. As is describes the condition, not the value.
The biggest misunderstanding I see is sellers treating "as is" as a pricing strategy instead of a condition disclosure. They price against renovated comps, thinking as-is justifies the same number with no repairs — and then the house sits. "As is" tells the buyer you won't fix things; it doesn't tell them to pay a fixed-up price anyway. The second one is assuming as-is means no negotiation. Buyers absolutely still negotiate — they just do it through the inspection, asking for a credit or a price reduction instead of repairs, and many sellers are caught off guard by that. And to your financing point: as-is with major issues quietly turns your listing into a cash-or-renovation-loan property, which is a much smaller buyer pool. Price for the condition, disclose everything, and let the market do the rest.