Selling "AS IS":
What selling “AS IS” means:
AS IS means that you make no warranties or representations as to a home’s condition. You’re selling it as it exists. Still, you must disclose all known defects in the property.
Typically you’re not willing to make corrections to problems that you are disclosing or to defects that you are unaware of.
The pros–when used:
Selling AS IS is more common in a hot market because the owners have the power. They don’t want the hassles and expense of repairs and buyers don’t have the leverage to be demanding about the condition of the property. Also, some sellers don't have the money to correct defects.
Most sellers use this approach because they're afraid of being liable for repairs after the sale is complete. It's also commonly used if the home is an estate - if the sellers didn't live in the property and aren’t familiar with possible defects. Marketing a property AS IS doesn’t have to mean there are any problems.
The cons–when not used:
In the typical marketing of a home, selling AS IS simply isn’t used. Not specifying AS IS actually "implies" a willingness on the owner’s part to sell a product in an atmosphere of fairness and good conscience.
Buyers will still take into consideration the condition of the property when they make their offer. They will make it contingent on a home inspection. The contract is usually worded so the buyers can void the deal if they are dissatisfied with the findings, especially if the seller is insisting on not negotiating resolutions to newly found problems.
However a broken deal means the seller will have to start all over again to find another buyer. If the inspection turns up new problems, there is an obligation to disclose these issues to future buyers, since the sellers are now aware of them.
The real bugaboo:
Marketing a home "AS IS" puts a stigma on the property in the minds of the buying public (what's wrong?). It often stops the majority of good, potential buyers from even looking at a home.
Whether you market your home AS IS or not, you have the potential of a lawsuit if something surfaces that you did not disclose and it’s determined that you knew of or even should have known of the defect.
Consult an attorney
State law may be a factor in selling AS IS. Due to liability issues, consult an attorney when considering this option.