An as-is clause legally means the seller is making no promises, guarantees, or warranties about the property’s condition, and has no contractual obligation to make repairs or offer repair credits. It does not mean the buyer waives their right to an inspection, and it does not erase the seller’s legal duty to disclose known defects. It also doesn’t bind the buyer’s mortgage lender, who can still require repairs before funding the loan. I’m Kevin Grolig, a Compass agent working Montgomery County and the greater DMV, and I get asked about this clause constantly because most people assume it means something bigger than it actually does. Here’s exactly what changes, and what doesn’t, when a contract includes it.

What Does “As Is” Actually Mean in the Contract?

In plain terms, an as-is clause shifts the burden of due diligence onto the buyer. The seller is telling the buyer, in writing, “I’m not fixing anything, and I’m not crediting you for anything I find.” That’s the core legal function of the clause. It’s a risk-allocation tool, not a magic shield that protects the seller from every obligation tied to the sale. Everything else in the contract, disclosure law, financing contingencies, title requirements, still applies exactly as it would in a normal sale.

Does an As-Is Clause Remove the Seller’s Disclosure Obligation?

No, it doesn’t. Maryland law still requires you to disclose all known material defects about the property regardless of whether the home is being sold as-is. This is the part people get wrong most often. As-is protects you from having to fix something or credit for it, it does not protect you from failing to disclose something you already know about. If you know your roof leaks or your basement floods, that has to go on the disclosure form whether the sale is as-is or not.

This is exactly why I tell sellers to think carefully before ordering a pre-listing inspection. Once you know about an issue, you have to either repair it or disclose it. If you never had the inspection done and genuinely don’t know about a defect, you have no legal obligation to go dig for it. That’s not a way to hide problems, it’s just an honest read on how the disclosure law works, and it’s a decision worth making deliberately rather than by accident.

Can Buyers Still Do a Home Inspection on an As-Is Property?

Yes, buyers absolutely can still perform inspections on an as-is home. What changes is the purpose of that inspection. In a typical sale, an inspection gives the buyer leverage to negotiate repairs or a credit. In an as-is sale, the inspection exists for the buyer’s information only. In most contracts, the buyer can still walk away within their inspection contingency period if what they find isn’t acceptable to them, using their sole discretion, but they have no contractual right to come back and ask you to fix anything or reduce the price because of what the inspector found.

What Rights Do Buyers Give Up in an As-Is Sale?

Buyers give up the right to negotiate repairs or repair credits based on inspection findings, not the right to inspect or the right to terminate. That distinction matters. A buyer who signs an as-is contract isn’t buying blind, they’re buying with full knowledge that they can look but they can’t ask for concessions afterward. Understanding this upfront helps buyers price their offer accordingly and helps sellers set realistic expectations for how negotiations will go.

Does an As-Is Clause Override the Lender’s Repair Requirements?

No, an as-is agreement between buyer and seller has zero effect on the buyer’s mortgage lender. Once you’re under contract, the lender orders an appraisal for two reasons: to confirm they aren’t lending more than the home is worth, and to confirm the home is structurally sound enough to meet their lending guidelines. If the home doesn’t meet those standards, the lender can require repairs as a condition of funding the loan, no matter what the buyer agreed to accept as-is. As I like to put it, the golden rule always applies here: whoever has the gold makes the rules. You can waive your own right to ask for repairs. You can’t waive the bank’s.

Is Selling As-Is the Right Move for You?

It depends on your situation, but as-is tends to make the most sense for homes that need significant work, or for sellers who are unable or unwilling to invest in repairs before listing. It’s a convenience-over-price decision. You should expect a smaller buyer pool and a lower sale price in exchange for skipping the repair process entirely. There’s no universally right answer, it comes down to what matters more to you in that specific sale.

Selling or buying as-is comes with real legal nuance, and getting the disclosure and contingency language wrong can cost you money or expose you to liability later. If you’re weighing an as-is sale in Montgomery County, I’d rather walk through your specific numbers with you than have you guess.

For a deeper breakdown of the process either way, check out myguide to buying a homeor myguide to selling a home.

FAQ

Does an as-is clause protect me from lawsuits after closing?

Not automatically. It limits repair obligations, but it doesn’t erase your duty to disclose known material defects. Failing to disclose something you knew about can still expose you to a claim after closing.

Can a buyer still negotiate price after an as-is inspection?

They can ask, but they have no contractual right to demand it. In most as-is contracts, the buyer’s only leverage is to terminate within their contingency period if they’re not satisfied, not to negotiate repairs or credits.

Will an as-is sale still require an appraisal?

Yes. The buyer’s lender orders an appraisal regardless of the as-is language between you and the buyer, and the lender can still require repairs before approving financing.

Should I get a pre-listing inspection before selling as-is?

Weigh it carefully. Once you know about a defect, you’re required to disclose or repair it. If you skip the inspection, you have no obligation to investigate further, but you also lose the chance to get ahead of any surprises during the buyer’s own inspection.

Do as-is homes always sell for less?

Typically, yes. Buyer pools shrink and the buyers who remain tend to write more cautious offers, especially compared to turnkey homes that command a premium in today’s market.

Got questions about selling or buying as-is in Montgomery County? Drop a comment, or reach out directly and I’ll walk you through your specific situation.

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Sources and next steps

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Contextual links for this video

Kevin site links:home selling guide;home buying guide;market stats;DMV Housing Market 2026: Is a Crash Coming or Are the Numbers Telling a Different Story?;Zillow Just Banned Private Listings — Here’s What Home Buyers and Sellers Actually Need to Know.

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