When to Use an As-Is Contract in Real Estate
An as-is contract tells buyers you won’t make repairs—yet it only makes sense in certain situations. Here’s when sellers and buyers should (and shouldn’t) use an as-is contract.
📌 When an As-Is Contract Makes Sense
An as-is contract works best when:
- You already priced the home for its condition
As-is makes sense when the listing price reflects repairs the buyer must handle. - You want faster timelines
As-is reduces back-and-forth negotiation, especially on older homes or estate sales. - The seller cannot or will not make repairs
This includes financial limits, schedule constraints, or physical inability. - The home will be sold to an investor or cash buyer
Flippers, landlords, and cash buyers expect as-is purchases. - The property needs updates, not critical repairs
Cosmetic issues are easy for buyers to accept under an as-is deal.
Already learned what “as-is” means? See: Buying or Selling a House As Is
⚠️ When an As-Is Contract Is NOT a Good Idea
- If the home has major safety or habitability issues
These may block FHA/VA financing even if the contract is as-is. - If you expect a top-of-market price
As-is can reduce buyer pool and leverage. - If you are legally obligated to fix certain items
Some states require repairs after inspections or for septic, roof, or HVAC issues. - If hiding issues is your goal
As-is does not reduce disclosure duties. See: Seller’s Duty to Disclose Latent Defects
🔍 When Buyers Should Use an As-Is Contract
- You want the lowest possible price
Sellers may agree to lower pricing in exchange for as-is terms. - You’re paying cash
No lender = fewer repair-related hurdles. - You’re buying a project home
Buyers planning renovations don’t want delays from repairs. - You need speed or certainty
As-is offers signal fewer obstacles between contract and closing.
Related: Seller Concessions Explained
🤝 Strategy: When As-Is Strengthens Your Position
- Hot markets: Buyers compete even if repairs are needed.
- Estate sales: Heirs want fast, clean transactions.
- Rental turnovers: Owners may refuse to rehab before listing.
- Divorce or relocation: Sellers prioritize certainty over repairs.
For more negotiation insight, see: How Buyers Contact FSBO Sellers
🏡 FSBO Sellers: How to Use As-Is Wisely
For FSBO listings, an as-is contract works best when expectations are clear and documented upfront. You can still allow inspections and negotiate credits if necessary.
- Be explicit in the listing description
- Price-in noticeable issues
- Use clean MLS photos: MLS Photo Rules
- Prepare disclosures early to avoid disputes
- Offer credits instead of repairs where financing allows (Seller Concessions)
FSBO guide: DIY Home Selling Playbook
🔑 Bottom Line
Use an as-is contract when you want speed, simplicity, or a clean shift of repair responsibility — but avoid it when major defects, legal requirements, or financing issues are involved. As-is is a strategy, not a shortcut.