A seller can say “as-is.”

The listing can say “as-is.”

The buyer can even understand that the seller does not want to make repairs.

And then the appraiser shows up.

I recently represented buyers purchasing a vacant home where the seller had already moved out of state. The home had been priced to sell in its current condition, and it was very clear that the seller did not want to take on additional repairs.

Fair enough.

Then the appraisal came back.

The appraiser called out gaps around decorative rock near the garage that left exposed points, and required the condition to be corrected before the buyer’s loan could move forward.

It was not a major renovation.

It was not something the seller had planned to repair.

But it still needed to be addressed.

Suddenly, “as-is” had an asterisk.

That is something I think every seller of a vacant home should understand before putting the property on the market.

What Does “As-Is” Actually Mean?

When a seller says a home is being sold as-is, what they generally mean is:

“I am pricing and offering the property in its current condition, and I do not plan to make repairs or improvements for the buyer.”

That can be a perfectly reasonable selling strategy.

Especially with a vacant home.

Maybe the seller has already moved out of state.

Maybe the property was inherited.

Maybe it was a rental.

Maybe the seller simply does not want to spend money renovating a home they are no longer living in.

There is nothing inherently wrong with selling a house as-is.

But as-is does not necessarily mean that the condition of the property becomes irrelevant.

The Buyer Can Still Inspect the Property

An as-is sale does not automatically mean the buyer walks through the house once, signs something, and accepts every problem without asking questions.

Buyers may still conduct inspections.

They may discover things they did not know about before making the offer.

Depending on the contract and circumstances, they may still raise concerns, ask questions, or make requests.

The seller may decide not to make repairs.

The buyer may decide the condition is acceptable.

Or the parties may negotiate.

That is part of the transaction.

Then There Is the Appraisal

This is where sellers are sometimes surprised.

A buyer may be completely willing to purchase the property as-is.

But if that buyer is obtaining a loan, the lender may have requirements for the property.

An appraiser is not simply determining value.

Depending on the loan program and the condition observed, the appraisal may identify items that need to be addressed before the lender will fund the loan.

That is exactly what happened with the vacant home I mentioned earlier.

The seller had already moved.

The home was priced with its condition in mind.

The seller did not intend to make repairs.

But the appraiser saw the exposed gaps around the decorative rock near the garage as a condition that needed to be corrected.

The seller could not simply point to the words “as-is” in the listing and make the lender ignore it.

“The Buyer Is Fine With It” May Not Be Enough

This is an important distinction.

The buyer may say:

“I don’t care. I’ll fix it after closing.”

And that sounds reasonable.

But the buyer does not control every requirement of the loan.

If the lender requires a condition to be corrected before funding, the issue may need to be resolved before the transaction can close.

That does not mean every defect will result in a required repair.

It depends on the property, the condition, the appraisal, the loan program, and the lender.

But sellers should know that selling as-is does not guarantee that nobody will require anything before closing.

Some Problems Are Cosmetic. Others Affect the Transaction.

This is where strategy matters.

There is a big difference between:

dated countertops

and

an appraisal condition

There is a difference between:

old carpet

and

a safety issue

There is a difference between:

a kitchen from 1998

and

something that prevents the buyer’s loan from funding

Buyers may be perfectly willing to accept cosmetic issues.

In fact, some buyers would rather choose their own flooring, paint colors, or countertops after closing.

But certain property conditions may create a completely different problem.

That is why I do not think an as-is strategy should simply mean:

“We are not touching anything.”

It should mean:

“We understand the property, we understand the likely buyer, and we are intentionally deciding what we are and are not going to address.”

When Selling As-Is Makes Sense

There are plenty of situations where selling a vacant home as-is may be the right decision.

For example:

• the seller has already moved away

• the property needs significant updating

• the owner does not want to manage contractors

• the seller wants a simpler sale

• the cost of improvements may not be recovered

• the home is priced appropriately for its condition

• the likely buyer is comfortable taking on work

Sometimes the smartest thing a seller can do is nothing major.

Clean it.

Maintain it.

Price it correctly.

Disclose what is known.

And let the next owner decide what they want to change.

But “As-Is” Should Not Mean “Ignore the House”

This is especially important with vacant properties.

A seller may have left the house months ago.

Conditions can change.

A small problem can become a larger one.

Something that was not a financing concern when the seller moved out may become one later.

Vacant homes still need attention.

Even when the plan is to sell them as-is.

Should You Make Repairs Before Listing an As-Is Home?

Maybe.

And I know that sounds like I am avoiding the question.

But this is where good strategy matters.

I would ask:

• Could this condition affect financing?

• Is it a health or safety concern?

• Will buyers assume the problem is worse than it actually is?

• Is the repair relatively inexpensive?

• Could fixing it open the property to more buyers?

• Will the seller likely recover the cost?

• Will leaving it alone create complications during escrow?

Sometimes a small repair makes the entire transaction easier.

Sometimes spending $20,000 on improvements would be a terrible idea.

The answer depends on the house.

What About FHA, VA, Conventional, and Cash Buyers?

Different buyers may have different financing and property-condition requirements.

A cash buyer may have more flexibility regarding the condition they are willing to accept.

A financed buyer may have lender and appraisal requirements that come into play.

That does not mean sellers should avoid financed buyers.

It means the seller should understand that the condition of the property can influence which buyers are the best fit and how smoothly the transaction moves toward closing.

Price Matters Too

If a seller wants to sell as-is, the price needs to make sense for the condition.

Buyers compare homes.

If one house needs work and another similarly priced home is move-in ready, the buyer is going to notice.

The seller does not necessarily need to fix the first house.

But the asking price should reflect what the buyer is taking on.

This is one reason I like evaluating the property before the seller starts spending money.

Sometimes the best plan is to make selected improvements.

Sometimes it is to sell exactly as it sits.

And sometimes the answer falls somewhere in between.

My Advice Before Listing a Vacant Home As-Is

Do not assume that putting “as-is” in the listing solves every property-condition issue.

Before going on the market, take a realistic look at the house.

Identify obvious safety concerns.

Think about likely financing.

Consider what an appraiser may notice.

Understand what buyers will see.

And decide intentionally which issues you are willing to address.

The goal is not to make the house perfect.

The goal is to avoid being surprised halfway through escrow.

Because the worst time to learn that something needs to be repaired is when the buyer’s loan is waiting for it.

Selling a Vacant Home As-Is in Greater Sacramento?

I’m Lisa Quaschnick, REALTOR® with eXp Realty of California, and I help homeowners throughout Sacramento, Placer, El Dorado, and Yolo counties prepare, manage, and sell vacant properties.

Sometimes that means making improvements.

Sometimes it means selling as-is.

My job is to help you figure out which approach makes the most sense before you start spending money or making assumptions about what the property needs.

For more information, read:

How to Sell a Vacant Home in Sacramento: A Step-by-Step Guide

and

Should You Fix a Vacant Home Before Selling It?

From vacant to sold, you’ll have someone local helping you every step of the way.