Can You Sell a House As Is Without Inspection?
Have your buyer waive the inspection contingency, and you’re set
Selling a house in as-is condition means you won’t be responsible for any repairs pre-closing.
Note that you’re selling as-is in your listing, and make sure to disclose any deficiencies to buyers.
Be prepared to accept a lower offer than if you carried out repairs before listing.
Most real estate transactions include a thorough inspection of the property that allows buyers to back out if their local home inspector uncovers damage or another major issue. Inspections can benefit both buyers and sellers, but skipping the inspection can also be beneficial. In this guide, we’ll discuss if you can sell a house as-is without an inspection, why you might want to, and how to do it while still getting top dollar for your home.
What Does It Mean to Sell a House As-Is?
Selling a house as-is just means that you, as the seller, are not willing to carry out any repairs before closing. Instead, the buyer is purchasing the home as it sits. Selling as-is without an inspection means you sell the home in its current conditions without the promise or obligation of making repairs, and the buyer also agrees not to make the sale contingent on the results of an inspection.
Even if you sell as-is, you’re still legally required to disclose any major issues that could affect the safety of the home or the property value, including things like structural damage, flood damage, and environmental issues.
Why Might You Sell a House As-Is Without an Inspection?
Selling a house in as-is condition and having your buyer forgo an inspection comes with two primary benefits.
First, you won’t be responsible for carrying out repairs on the property, which could mean avoiding thousands or even tens of thousands of dollars before closing. If you’ve inherited a home or want to sell a property you’ve been renting without having to put money into it first, selling as-is without an inspection is a good way to insulate yourself from repair costs.
Second, inspections take time, and most real estate purchase agreements provide the buyer with an inspection contingency period of seven to ten days. During this time, they can conduct a property inspection and back out of the deal due to a failed inspection. This can delay the sales process, as can having to carry out the repairs yourself before closing. Selling as-is without any type of home inspection speeds up the process significantly, sometimes taking weeks off of the timeline. This might be ideal if you need to get rid of the property quickly.
How to Sell a House As-Is Without an Inspection
There are a few key steps you can take to sell a house as-is without an inspection, avoid headaches, and get the highest sale price possible.
Know What to Expect In Terms of Buyers and Sale Price
First and foremost, you should be prepared for a different group of interested buyers than if you sold a home the traditional way. Many buyers will see the words “as-is” and assume there are known issues with the house, causing some to pass on the property altogether. You’re more likely to get investors and first-time homebuyers looking for fixer-uppers. These types of buyers may be willing to pay less than others, especially if they believe they’ll have to deal with repairs post-closing, so you should be prepared for lower offers.
Having your buyer forgo an inspection—especially if it’s because there are known problems—may also limit a buyer’s financing options. If you know there are roof leaks, plumbing leaks, or structural issues, you’ll have to disclose those, and most traditional lenders won’t lend against the home. You’ll be cutting out a significant portion of the buyer pool even if the term “as-is” doesn’t scare buyers away. Reducing competition may drive the price lower, too.
Don’t Prohibit an Inspection
While you can absolutely sell a house as-is without an inspection, you don’t have to do so to get the benefits of selling as-is. Make sure your buyer waives the home inspection contingency period, but feel free to let the buyer carry out an inspection while the deal moves forward. They’ll have no recourse to back out because of something in the inspection, but they’ll be more likely to move forward with the offer in the first place if they know they can get a home inspection to prepare for any repairs after closing.
You can even consider paying the cost of a home inspection before listing to speed up the sale once the property is on the market. This could give buyers some peace of mind without delaying the sale, and it could prevent issues if the buyer needs an inspection to get homeowner’s insurance.
Highlight the Positives
When you market your property, make sure the property description notes that it’s an as-is sale but also highlight the positives. Mention things like an open floor plan, new appliances, and a new roof to entice buyers to look more closely.
In most cases, selling a home in as-is condition will lead to a sale price that’s somewhere between 10% and 30% lower than normal. However, it’s often worthwhile to sell at a loss because the alternative would be to pay for the repairs yourself, which could end up costing you more. Even if they didn’t, selling as-is saves you from the time and energy you’d spend coordinating the repairs.
In most cases, no. The purpose of an inspection is to highlight any glaring issues with the property that the buyer might use to negotiate or want to rectify after closing, but there’s no law stating the inspection must pass. A buyer can accept any problems identified during a failed home inspection. The only exception would be lender-required repairs, which could hold up the mortgage.
