Question: I don’t want to do any work to my home when I sell it, should I offer it “as-is”?
Answer: Selling a property “as-is” in Northern Virginia carries a practical purpose and a contractual definition that may differ and/or carry unintended consequences.
Implied Definition
When sellers market a property as-is, they’re usually implying that they do not want the hassle of making repairs; sometimes they also want to convey that they won’t negotiate credits for repairs either. That does not automatically mean the buyer cannot inspect the property. The parties might agree to a pre-offer inspection or an inspection contingency that allows the buyer to void the contract.
As-is doesn’t necessarily mean that a property has problems, but sellers should understand that most buyers assume an as-is property has issues and will approach it accordingly.
Technical/Contractual Definition
In Northern Virginia’s Contingencies/Clauses Addendum you’ll find a section for selling “as-is” with the following selectable options:
- Seller will not clean or remove debris. The standard is for the property to be free of trash/debris and broom clean.
- The seller is not responsible for addressing any wood destroying insect/termite issues. The standard agreement requires the seller to pay for any damage from wood destroying insects.
- The seller is not required to fix any Homeowners/Condo Association violations related to the physical condition of the property.
- The buyer assumes responsibility for compliance with applicable smoke-detector laws and regulations.
- The seller is not responsible for compliance with notices of violation from local authorities.
Many properties are marketed as-is, but it’s less common for the as-is clause(s) in the contract to be used. Calling a property “as-is” in the marketing does not make it so, only the contract does that.
Understand Your Choice
I often talk to homeowners who ask to sell as-is because they don’t want to deal with buyer repair requests but their home is in good condition and they don’t mind negotiating for repair credits or addressing a big ticket issue. In cases like this, declaring a home as-is can discourage buyers unnecessarily or possibly net sellers less money. A better approach is to communicate those expectations up-front with a buyer without calling the home as-is.
For buyers who come across an as-is sale, it’s important to ask the right questions to find out what the seller’s true intentions are. For example, will they allow a pre-offer inspection or a void-only inspection after contract? Do they intend to address HOA/condo violations? Make sure that you are pricing and negotiating contract terms based on the seller’s intention, not based on your assumptions.
Who Uses As-Is?
As-is sales are common in estate sales (seller may have limited knowledge of the property) or properties marketed towards builders/investors (flips or tear-downs). There are plenty of other appropriate use cases for a true as-is sale, but those are the most common that I see.
If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].
We have access to the most pre and off-market listings across the DMV of any brokerage and are happy to share what’s available with anyone who asks.
Below are some of our team’s pre/off-market listings, details and additional listings available by request:
- Ballston (Arlington VA)
- 4BR/3.5BA+office/4,000SF/Block to Metro, garage, driveway, and yard – Six townhouses (2027) – 11th St N Arlington VA 22201
- Rosslyn (Arlington VA)
- 1BR+den/1.5BA/830SF/Exceptional amenities and balcony
- Cherrydale (Arlington VA)
- 2BR/2BA/1,150 sqft/Penthouse with large terrace and Monument views – Condo (2013) – 2101 N Monroe St Arlington VA 22207
- Chain Bridge Forest (Arlington VA)
- 6BR/6.5BA/7,000+SF/Great lot, exceptionally finished – Detached Single Family (2028) – N River St Arlington VA 22207
- Barcroft (Arlington VA)
- 4BR/2BA/2,500SF/Large, landscaped lot with well-built brick home – Detached Single Family – 4th St S Arlington VA 22204
- Fairfax VA
- 6BR/6.2BA/7,000+SF/Half acre, golf simulator and wellness rooms – Detached Single Family (2027) – 4012 Taylor Dr Fairfax VA 22032
