Think Selling Your Home 'As Is' Means You'll Have No Worries? Think Again
There are significant risks and legal obligations involved in selling a home 'as is' and by yourself, without a real estate agent.


Does this sound familiar?
Our longtime client Dr. "G" dropped by the office with a question: "Beave, I want to sell the home I inherited from my parents years ago as is and by myself, without a real estate agent. Why pay a large commission? I'm educated. How complicated can it be?
"I haven't lived in it since I was in high school, and it has been a rental for over 20 years. Frankly, I have no idea of its condition, and the tenants never complained about a thing, and because we kept the rent low, they took care of all repairs themselves.
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"I read an online story that said putting 'as is' on the sale ads and the contract means that if anything goes wrong with the home, the seller can't be successfully sued for anything.
"Is that true? Or do you think I should have my own real estate agent?"
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Do you know what you are getting into?
When I ran this question by Southern California-based real estate attorney Luke Carlson, he said, "Your client is correct — it is possible to sell a home without having a seller's agent. But should you? Do you know what you are getting yourself into?"
He pointed out, "There are two issues here — selling a home yourself and selling it as is. Both have significant risks if you do not understand and meet your legal obligations."
To that, I would add there are enough moving parts to the sale of a house by the owner (known as an FSBO) to give anyone unfamiliar with the complexity of this transaction motion sickness.
Carlson listed some of the pitfalls of an FSBO:
1. You could overvalue or undervalue the home
Do you know how much homes in your area are actually selling for? Ask too much and the house just sits on the market.
Underpricing may raise suspicions that there's something wrong with the property. Or you could end up selling for far less than the market price.
A real estate agent has the tools to establish a reasonable price for your neighborhood.
2. It can become an emotional roller coaster
Selling the home you grew up in or where you raised your family can evoke a wide range of feelings. Realizing that you are not going back there again can be a deeply emotional experience.
An experienced real estate agent can be that shoulder to lean on at this time.
3. Lack of knowledge: You don't know what you don't know
Without the guidance of a real estate agent, you may not be aware of all the necessary legal documents or how to properly complete them.
The closing process is complex, and it can involve a number of steps that are typically handled by lawyers or legal professionals, depending on the state where you reside.
4. You could waste valuable time dealing with unvetted buyers
When selling privately, folks often lack experience in sniffing out unvetted buyers and can wind up dealing with people who aren't financially qualified to purchase the home.
The result is frustration, disappointment and wasted time when the deal falls through.
Myth: Selling your home as is frees you from all responsibility
Carlson also highlighted a risky assumption some as-is buyers make. "Dennis, one of the most dangerous beliefs floating around is that (some sellers think that) simply writing 'as is' on sales material, contracts — anything connected to the sale — is a get-out-of-jail-free card, and they are immune from being sued. The false message is that the seller can just walk away from any issues the house could have."
The legal requirement is transparency, he noted. "Using the words 'as is' when selling doesn't mean you can sweep problems under the rug. Do so, and don't be surprised if you find yourself in hot water, as there still is a legal obligation to disclose known issues with your property."
If after the sale, a buyer discovers an issue that they feel should have been disclosed, "You may be given a choice," Carlson said. "'Pay to repair the damage, or we go to court.'"
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So what would be considered "known issues"? Carlson pointed out, "This typically means revealing serious problems, such as water damage, structural issues or hazardous conditions like asbestos, lead paint, electrical problems, tendency to flood — the list could go on for pages."
Carlson suggested a seller should invest in a home inspection and give the written findings to the buyer. "This would prove valuable in the event of a claim that you covered something up," he noted.
What does selling your home as is really mean, then?
"Listing your home 'as is' means that it is in its current condition, and you are not making repairs," Carlson explained. "You are disclosing all the defects of which you are aware, and the buyer is accepting the house as it is."
Carlson concluded our interview with this caveat: "Sellers often choose to sell as is when they can't or don't want to invest in repairs. Common situations include inherited properties, estate sales or financial issues. Selling as is typically results in lower offers and fewer interested buyers."
Bonus tip: For anyone whose homeowners association (HOA) is driving them nuts, Carlson's recently published book, Bad HOA: The Homeowner's Guide to Going to War and Reclaiming Your Power, is filled with useful tips. It is currently an Amazon bestseller, and I will be discussing I in an upcoming article.
Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.
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After attending Loyola University School of Law, H. Dennis Beaver joined California's Kern County District Attorney's Office, where he established a Consumer Fraud section. He is in the general practice of law and writes a syndicated newspaper column, "You and the Law." Through his column, he offers readers in need of down-to-earth advice his help free of charge. "I know it sounds corny, but I just love to be able to use my education and experience to help, simply to help. When a reader contacts me, it is a gift."
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