You can sell a house as-is without an inspection. No federal or state law forces a seller to hire an inspector before closing, and buyers and sellers are free to negotiate a deal that skips one. Two things still constrain you: you must disclose known problems even when selling as-is, and if your buyer is using a mortgage, the lender may require certain property conditions to be met before it will fund the loan.
No Law Requires a Seller to Provide an Inspection
There is no federal statute that requires a home seller to obtain or pay for an inspection before a private sale. State property codes generally let buyers and sellers negotiate whatever terms they want, including terms that skip any professional evaluation. You can list your property without providing a third-party assessment of its systems, structure, or condition.
Most of the confusion comes from lender requirements. When a buyer finances the purchase with a mortgage, the lender typically requires an appraisal, and sometimes an inspection, to protect its investment. That obligation runs through the buyer and the loan process, not through you. A cash buyer can skip the appraisal entirely and choose to forgo an inspection too.
Buyers Can Still Inspect an As-Is Home
One of the biggest misconceptions about as-is sales is that the buyer cannot inspect the property. In most transactions, the buyer keeps the right to hire their own inspector. The as-is label means you are not obligated to fix anything the inspection turns up. It does not block the buyer from looking.
Whether the buyer can walk away depends on the purchase contract. If the contract includes an inspection contingency, the buyer can terminate the deal and recover their earnest money if the inspection results are unsatisfactory, even though the home is listed as-is. If the buyer waives that contingency, which is common in competitive markets, they can still back out but risk losing the earnest money. A buyer who waives inspection gives you more certainty the deal will close.
What You Still Have to Disclose
Selling without an inspection does not let you hide known problems. Federal law and most state laws impose disclosure duties that apply regardless of any as-is language in the contract.
Federal Lead-Based Paint Disclosure
If your home was built before 1978, federal law requires you to disclose any known lead-based paint or lead-based paint hazards before the buyer is locked into the contract.1Office of the Law Revision Counsel. 42 USC 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property You must also give the buyer a lead hazard information pamphlet, share any lead inspection reports you have, and provide at least 10 days for the buyer to arrange their own lead inspection, unless the parties agree on a different timeframe.
The purchase contract must include a specific Lead Warning Statement, and the buyer must sign an acknowledgment that they received it. Knowingly violating these requirements carries civil penalties of up to $22,263 per violation under the most recent inflation adjustment.2Federal Register. Civil Monetary Penalty Inflation Adjustment
State Material Defect Disclosures
Most states require sellers to fill out a property disclosure form listing known material defects: foundation cracks, roof leaks, water damage, pest infestations, faulty wiring, and similar issues. An as-is clause does not override these obligations. Even when the buyer agrees to accept the home with all faults, you must still report the problems you know about.
The line courts draw is between visible defects and hidden ones. A visible defect, such as a cracked window or a stained ceiling, is something the buyer can observe on a walkthrough, and you generally have no duty to point it out. A hidden, or latent, defect is something the buyer cannot discover without further investigation, like a leaking foundation behind finished walls or outdated wiring concealed in the attic. If you know about a hidden defect that makes the home dangerous or uninhabitable, you must disclose it. You are not required to disclose defects you genuinely don’t know about, and the as-is clause protects you from liability for those unknown issues.
What Happens If You Conceal a Known Defect
Intentionally hiding a known problem exposes you to serious legal risk. A buyer who discovers an undisclosed defect after closing can sue to rescind the contract or seek damages equal to the cost of the repairs. Courts in many states treat deliberate concealment as fraud, which can open the door to punitive damages on top of repair costs. In some cases, a judge may also shift the buyer’s legal fees to you. The as-is clause offers no protection when you actively concealed something you knew about; it only shields you from responsibility for problems you were unaware of.
How the Buyer’s Loan Can Force Repairs Anyway
Even when both parties agree to an as-is sale, the buyer’s mortgage lender may require certain property conditions to be met before the loan closes. This is the most common obstacle in as-is transactions and one that catches many sellers off guard.
FHA Loans
The Federal Housing Administration requires the property to be free of health and safety hazards before it will insure the loan. The lender must confirm the home is free of environmental hazards, lead paint hazards for pre-1978 homes, and methamphetamine contamination.3U.S. Department of Housing and Urban Development. Mortgagee Letter 2025-18 – Rescission of Outdated and Costly FHA Appraisal Protocols If the appraiser flags defects that affect safety or structural integrity, such as a failing roof, non-functional utilities, or foundation damage, those repairs must be completed before the loan can close. As an as-is seller, that leaves you with three choices: make the required repairs, negotiate a price reduction so the buyer handles them, or wait for a cash offer or conventional buyer whose loan avoids these conditions.
VA Loans
The Department of Veterans Affairs imposes similar Minimum Property Requirements. The home must be safe, structurally sound, and sanitary. Specific requirements include a roof that prevents moisture entry, a permanent heating system that maintains at least 50 degrees in areas with plumbing, and remediation of any defective lead-based paint in pre-1978 homes.4Veterans Benefits Administration. VA Pamphlet 26-7 Chapter 12 – Minimum Property Requirement Overview Properties with conditions that impair safety or structural soundness are considered unacceptable until the defects are corrected. If your home has significant deferred maintenance, a VA-financed buyer may struggle to get approval without repairs.
Conventional Loans
Conventional loans backed by Fannie Mae have fewer mandatory repair requirements than FHA or VA loans, but they are not repair-free. The appraiser must conduct a visual inspection of the home’s interior and exterior and note adverse conditions. If physical defects affect the safety, soundness, or structural integrity of the property, such as foundation cracks or active roof leaks, the appraisal must be completed “subject to” specific repairs, meaning those repairs need to happen before closing.5Fannie Mae. Appraisal and Property-Related Frequently Asked Questions Minor issues like worn finishes or cosmetic damage generally do not trigger repair requirements for conventional financing.
Cash buyers avoid all of these hurdles. If speed and certainty matter more than sale price, targeting cash buyers or investors is often the most practical route for an as-is property with significant defects.
Protecting Yourself in the As-Is Contract
A clear, well-drafted contract is your best protection in an as-is sale. Standardized real estate forms are available through local boards of Realtors and state bar associations, and most include an as-is addendum or specific as-is language. A solid contract should include:
- An as-is addendum stating the buyer accepts the property with all faults and that the sale price reflects its current condition, with language making clear the buyer waives the right to request repairs or credits after signing.
- An integration clause, sometimes called a merger clause, stating the written contract is the complete and final agreement between the parties. This blocks a later claim that you made verbal promises about the property’s condition that are not in the signed document.
- Completed disclosure forms covering all known defects, the age of major systems (roof, HVAC, water heater), and any history of flooding or structural repairs. Thorough disclosures create a paper trail if the buyer later claims the home was misrepresented.
- A negotiated due diligence period during which the buyer can investigate the property, pursue financing, and arrange their own inspections. There is no standard length. During this window, the buyer can usually terminate the contract for any reason and recover their earnest money. Once it expires, that exit closes.
Every party on the deed must sign the contract, and signatures typically need to be witnessed and notarized.
The Price Trade-Off
As-is sales usually close faster and involve less hassle, but they come at a cost. Homes sold as-is generally fetch less than comparable properties sold in move-in condition. Discounts of 5% to 15% are common for homes with moderate issues, and properties needing major structural work may sell for 20% to 30% below market value. Buyers price in the cost and risk of unknown repairs.
Weigh that discount against what you would spend on repairs, the carrying costs of holding the home longer (mortgage payments, taxes, insurance, utilities), and the value of a faster closing. For sellers facing financial hardship, inherited properties in poor condition, or homes needing more repair than the seller can manage, selling as-is often makes financial sense despite the lower price. For sellers whose homes only need minor cosmetic work, a few targeted repairs before listing may return more than the as-is discount costs.