Selling as-is?
Here’s what that really means.

The disclosures you still owe

Most sellers of a one-to-four-unit home must give the buyer a Transfer Disclosure Statement, the state form covering what you know about the house, from the roof and plumbing to work done without permits. California law says it can’t be waived in an as-is sale. If it’s delivered after the buyer signs, the buyer gets three days to back out, or five if it was mailed or sent electronically.

Sellers also give a Natural Hazard Disclosure Statement saying whether the property is in zones like a flood hazard area, a very high fire hazard severity zone, an earthquake fault zone or a seismic hazard zone; most order a report to fill it in. A home built before 1978 needs the federal lead-based paint disclosure and pamphlet, and the buyer gets 10 days to test for lead unless they waive it. A wood-frame house built before 1960 also comes with the state’s Homeowner’s Guide to Earthquake Safety and a disclosure of known earthquake weaknesses.

Then there are safety items. Homes need working smoke alarms, plus carbon monoxide alarms if they have a fuel-burning heater or appliance, a fireplace or an attached garage. Water heaters must be braced, anchored or strapped for earthquakes. The seller of a single-family home gives the buyer a written statement on smoke alarms, and sellers certify the water heater bracing in writing.

Sales that are exempt

Some sales skip the Transfer Disclosure Statement and the Natural Hazard Disclosure Statement, including sales by an executor, administrator or trustee while administering an estate or trust, sales ordered by a probate court and foreclosure sales. One catch: a trustee of a revocable trust who used to own the house, or lived there in the past year, isn’t exempt.

Exempt doesn’t mean silent. The federal lead disclosure has no exemption for estate or trust sales, and every seller still has to be honest about problems they know of.

What “as-is” doesn’t do

It doesn’t stop the buyer from inspecting. Most buyers still inspect, and one with an inspection contingency can usually cancel or ask for a lower price based on what turns up.

It also doesn’t protect concealment or fraud. California won’t enforce a contract term that excuses someone from their own fraud, and the disclosure rules don’t replace the separate duty to avoid fraud, misrepresentation or deceit. Painting over a water stain or staying quiet about a known foundation crack can still lead to a lawsuit after closing. Disclosing what you know is the best protection.

How as-is offers are priced

Here’s the honest math. An investor starts with what the house would likely sell for after repairs, based on recent nearby sales. Then it subtracts the repairs and the costs of holding and reselling the house, and leaves room for a profit. That’s why an as-is cash offer is usually below what the same house would bring fixed up and listed.

In return, you get speed and certainty: no repairs, no commissions, no showings and no buyer’s loan to fall through. We walk you through how we got to our number, so you can compare it with what an agent thinks you’d net from listing.

Listing as-is vs. selling for cash

You can also list as-is with an agent. That reaches more buyers, including owner-occupants and buyers using renovation loans like FHA’s 203(k), and competition can bring a higher price. It also brings commissions, showings, a longer timeline and buyers who may still ask for credits after inspecting or lose their financing.

A cash sale trades some of the price for a set closing date and fewer moving parts. Neither is right for everyone, so get both numbers and compare what you’d actually net.