This regularly scheduled column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

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.

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