60-Second Answer: What As-Is Actually Means

1. The buyer accepts the physical condition of the property as it currently exists. No seller repairs required.
2. The seller’s legal disclosure obligations still apply in full. You must still complete and deliver the Illinois Residential Real Property Disclosure Report under 765 ILCS 77. If it’s a condo, you still owe the Section 22.1 disclosure.
3. You cannot hide known defects. “As-is” is not a license to conceal. Known material defects must still be disclosed.
4. Inspection contingencies still run by default. Buyers can still inspect, and can still terminate during attorney review if inspection findings are bad.
5. Pricing reflects the trade. As-is sales usually close 5-15% below fully-repaired comparable sales. That’s the discount buyers demand for taking on unknown risk.

Who Actually Sells As-Is (and Why)

As-is is not just for distressed property. Plenty of well-maintained homes sell as-is because the seller wants certainty over price. Real reasons I see:

• Inherited property the seller doesn’t want to renovate. Estate sales are often as-is by necessity.
• Investor-to-investor transactions. Investors buying flips or rentals want to see the condition, build their own scope, and negotiate from there.
• Owner moving out of state on a deadline. No time to run contractors. Sell now, move on.
• Old homes with known issues the seller won’t address. Seller discloses, prices accordingly, and moves on.
• Divorce or death sales where co-owners can’t agree on repairs. As-is removes the repair argument.
• Deferred-maintenance sellers who just don’t want the fight. Cheaper to discount and move.

Disclosure Rules Still Apply to As-Is Sales

The single biggest misconception about selling as-is is that “as-is” somehow eliminates the seller’s legal disclosure duty. It doesn’t. Here’s what still applies.

Illinois Residential Real Property Disclosure Act

Under 765 ILCS 77, the seller must complete the Illinois Residential Real Property Disclosure Report and deliver it to the buyer before contract. The report covers 23 specific conditions, including:

• Foundation or structural defects
• Water infiltration or drainage issues
• Roof leaks
• Well or septic problems
• Known radon, lead, asbestos, or mold
• Boundary disputes
• Material defects in mechanical systems
• Violations of building code, zoning, or homeowner association rules
• Flood hazard or flooding history

An “as-is” provision in the contract does not override this statute. A seller who knows about a material defect and fails to disclose it remains personally liable even on an as-is sale. Buyer’s post-closing remedy can include rescission, damages, and attorney fees. See my full disclosure post for detail.

Condo Section 22.1 Disclosure

If the property is a condo, 765 ILCS 605/22.1 requires disclosure of the association’s financial condition, pending assessments, rules, and litigation. As-is does not override this either. A seller who fails to deliver the 22.1 faces claims from both the buyer and the association.

Federal Lead Paint Disclosure

For homes built before 1978, federal law requires disclosure of known lead paint and provision of the EPA pamphlet. As-is does not waive this. It cannot be waived.

What “As-Is” Actually Changes in the Contract

If the disclosure rules don’t change, what does the as-is provision actually do? Two things.

1. No Seller Repair Obligation

After inspection, the buyer in a standard sale can request repairs or credits. The seller can negotiate, refuse, or agree. In an as-is sale, the contract specifies that the seller is not required to make repairs or give credits regardless of inspection findings.

2. Inspection Still Happens, but Remedy Is Different

In an as-is sale, the buyer typically retains the right to inspect, and retains the right to terminate during attorney review based on inspection. What the buyer gives up is the right to demand repairs or price reductions. Inspect, accept, or walk. Those are the three options.

Some aggressive as-is contracts also waive the inspection contingency, but I advise sellers against that. A buyer who is pushed to waive inspection entirely often backs out at the last minute on some other basis, or doesn’t close at all. Leaving the inspection contingency in with no repair right is a cleaner structure.

Where As-Is Sales Go Wrong

What Can Go Wrong	Typical Cost
Seller fails to disclose known defect; buyer sues post-closing	Rescission plus damages plus buyer’s attorney fees: $10,000-$150,000
22.1 condo disclosure not delivered; association special assessment hits after closing	$4,000-$40,000 assessment, seller exposed to buyer claim
Lead paint disclosure missing on pre-1978 home	Civil penalties plus buyer’s actual damages and fees
“As-is” contract without proper inspection-contingency language; buyer walks late	Retained earnest money, lost listing time, price cut on next buyer
Seller agrees to a repair verbally after as-is signed; not documented	Dispute at closing, delayed funding
My flat-fee as-is representation	$500 flat

Pricing an As-Is Home

The market consistently discounts as-is homes. The discount depends on condition, local comps, and buyer pool. Rough rules I’ve seen hold up:

• Well-maintained home, seller just doesn’t want inspection drama: 3-7% below fully-traditional comp.
• Home with known cosmetic issues but solid bones: 8-12% below.
• Home with one known major issue (roof, HVAC, foundation crack): cost of that repair plus 10-15% buffer the buyer will demand.
• Distressed property, multiple systems at end-of-life: investor-pricing territory, often 25-40% below retail.

An agent-free or FSBO as-is sale has its own dynamic. See my FSBO post for detail on selling without a broker.

Alternatives to Selling As-Is

Before committing to as-is, consider whether one of these options gets a better outcome.

Fix and Sell Traditionally

If the identified issues are cosmetic or small mechanical (paint, flooring, water heater, minor roof work), the cost of fixing often returns 1.5-2x the spend in sale price. Worth pricing before defaulting to as-is.

Pre-Listing Inspection with Known-Issues Disclosure

Pay for the inspection up front, disclose everything, price accordingly, but leave repair negotiation on the table. Buyers often pay a small premium for transparency.

Sell to an Investor

Investor buyers expect as-is and don’t negotiate repair. Typical discount is deeper than retail as-is, but the close is fast, the paperwork is clean, and the cash is certain.

Short Sale

If the property is underwater on its mortgage, a short sale may be the right path. See my short sale landing page for detail on my process.

Why Have Me Represent You on an As-Is Sale

• Licensed in Illinois since 2015. ARDC #6311917. Verify at iardc.org.
• Flat $500 fee. No hourly billing. Includes everything from disclosure through closing.
• Attorney-title agent. One office handles legal and title.
• Careful disclosure drafting. I draft the Illinois Residential Real Property Disclosure Report carefully, not as a checkbox exercise. Proper disclosure is your insurance against post-closing claims.
• I answer the phone. If the buyer’s attorney calls with an issue, I handle it. No phone tag.
• Coverage across DuPage, Cook, Kane, Will, Lake, McHenry, and central Illinois including Peoria.

Frequently Asked Questions

Do I still have to complete the Illinois disclosure form on an as-is sale?

Yes. The Residential Real Property Disclosure Report is statutory under 765 ILCS 77. “As-is” contract language does not override it. The form must be completed and delivered to the buyer before the contract is signed.

Can the buyer still inspect on an as-is sale?

Typically yes. The “as-is” provision eliminates seller repair obligations but does not automatically waive the inspection contingency. Buyers usually retain the right to inspect and terminate.

How much less does an as-is home sell for?

Depends on condition. Well-maintained: 3-7% discount. Known issues: 8-12%. Major issue: repair cost plus 10-15%. Distressed: often 25-40% below fully-repaired comparable.

What happens if I don’t disclose something?

Buyer’s remedy on a post-closing disclosure claim can include rescission (undoing the sale), damages, and attorney fees. “As-is” does not protect a seller who knowingly concealed a material defect.

Why is the fee $500 instead of $0 like a regular sell-side?

Standard seller representation is bundled into the title work. As-is sales require more attorney work on disclosure drafting, inspection response, and buyer negotiation. The $500 flat fee reflects that additional work.

Can I sell an inherited property as-is?

Yes, and this is one of the most common reasons to sell as-is. Inheritance sales often close as-is because the executor or heirs don’t want to renovate. Estate-related disclosure nuances still apply.

Can I skip disclosure if the buyer waives it?

No. The statute requires delivery. Even a written waiver by the buyer does not erase the seller’s statutory obligation.

What if the buyer wants to waive inspection entirely?

I advise sellers to accept that with some caution. Waived inspection removes a useful escape valve for the buyer, which sounds good for the seller, but in my experience it makes deals more likely to fall apart at the last minute on some other pretext.