Selling a House ‘As Is’ in Maryland

Fast facts about selling a house ‘as-is’ in Maryland

Median sales price in Maryland	$436,000
Average days on market for Maryland	8 to 23 days
Disclosures	Maryland law requires sellers to disclose material facts about the property through the Maryland Residential Property Disclosure and Disclaimer Statement.
MLS has field to mark a listing as-is?	Yes, according to Umanzor, there is an as-is addendum for agents to complete.
Is a real estate attorney required?	Real estate attorneys are not considered essential for closing in the state of Maryland.
Real estate transfer taxes?	0.5%, or 0.25% for first-time buyers

What does as-is condition mean in real estate?

An as-is home sale means the property is sold without any improvements or repairs. When a seller lists a house as-is, they are opting not to accommodate buyers’ requests for repairs or offer credits for any needed fixes.

An as-is sale also may indicate that the functionality and longevity of certain components of the home, such as a stove on its last legs or an older roof, is not guaranteed.

When selling a house as-is, the general condition of the property should already be accounted for in the purchase price of the home to the best of the seller’s knowledge.

Which types of homes are sold as-is?

Homes sold as-is often need repairs or may be cosmetically outdated, so this designation typically isn’t used for properties that are in pristine, move-in-ready condition.

As-is sales often attract investors searching for their next flip, or buyers seeking a bargain, perhaps on a home in a great location with lots of potential.

But Umanzor notes that this approach can limit the pool of potential buyers. “You are limiting the number of buyers that could purchase the property because of the type of loan they have,” Umanzor says. “Especially if there are safety concerns, you’ll be looking for an investor to buy the home rather than a buyer willing to pay top dollar.”

What problems do you have to disclose in Maryland?

Selling a house as-is in Maryland doesn’t mean ignoring known issues with the property.

It’s a good idea to complete the Maryland Residential Property Disclosure and Disclaimer Statement before listing your home or requesting an offer, ensuring it’s handled ahead of time.

According to the document, all sellers in Maryland must provide homebuyers with either a Disclosure Statement that provides a detailed list of any and all defects that are known to the seller, or a Disclaimer Statement, which makes no warranties about the home’s condition.

The property disclosure form includes questions that cover a wide range of potential issues, including:

Material facts or defects

• Settlement or other problems with the home’s foundation
• Leaks or evidence of moisture in the basement
• Leaks or evidence of moisture coming from the roof
• Structural defects in the walls or floors

Main home systems

• Any known issues with the plumbing system
• Problems with the heating or air conditioning system
• Issues with electrical fuses, circuit breakers, outlets, or wiring
• The functionality of smoke alarms and any fire suppression systems
• The operating condition of the septic system
• Problems with water supply or water treatment
• Concerns about standing water, gutters, and downspouts
• History of infestation or prior damage from wood-destroying insects

Hazardous or regulated materials

• Licensed landfills
• Asbestos
• Radon gas
• Lead-based paint
• Underground storage tanks
• Any other contamination

Zoning, lot, or permit violations

• Nonconforming uses
• Violation of building restrictions or setback requirements
• Any recorded or unrecorded easement, except for utilities
• If proper permits were pulled for improvements on the property

Home location considerations

• If the property is located in a flood zone
• If the property is located in a conservation or wetland area
• If the home is part of a designated historic district
• If the property is part of a homeowners association (HOA)

The disclosure form closes by asking the seller if there are any other material defects, including latent defects, affecting the physical condition of the property.

Even in the case of an as-is sale, you are still required to provide a list of latent defects to prospective buyers. These are any problems the purchaser wouldn’t be able to discover for themselves during a visual inspection, as well as anything that would pose a health or safety hazard.

For the disclaimer portion of the form, you simply need to specify whether you have knowledge of any defects, and then provide a brief explanation in the space provided.

Exemptions

No matter what method you choose to sell your home, it’s required to make these disclosures to the best of your ability. However, Maryland does allow certain exemptions for sellers who haven’t lived in the home, including for homes that have never been occupied or in cases when a certificate of occupancy has been issued within the preceding year.

Review your options to sell as-is in Maryland

The main options to sell a house as-is in Maryland include:

List as-is with the help of a real estate agent

A great real estate agent will provide assistance throughout the process of listing and selling a home as-is in Maryland. An agent gives simple presentation tips to improve marketing, helps to set an appropriate price that reflects the home’s condition, and works to find a buyer willing and eager to buy your home in its current state.

“It’s very important for sellers to work with a top agent,” Umanzor says. “I know my craft and can prepare my clients with everything that’s going to happen throughout the process. Just knowing where you’re going and how you’re going to navigate everything puts you at an advantage.”

Sell directly to a cash buyer

Someone needing to sell their home as-is also can work directly with a property investor or house-buying company rather than list, where it may be difficult to get an offer from a limited buyer pool.

“We Buy Houses” operations buy as-is at a discounted rate and generally seek out homes in need of significant repairs. These companies can help sellers cash out quickly and many will cover a seller’s closing costs.

Steps to list as-is with the help of a real estate agent

Find an agent willing to list the home as-is

Your choice of real estate agent always matters, but especially when selling a property as-is. It’s important to find the right match. You’re looking for an agent who doesn’t shy away from listings that need a little TLC and maybe has a strong network of investor connections.

Your agent should also be willing to go the extra mile on marketing. Considering that 34% of Americans say they would prefer to buy a move-in-ready home, an as-is sale likely has a reduced buyer pool from the start.

Because of this reduced buyer pool, something that Umanzor will do as both a real estate agent and investor is to lend his clients the money they need to make some of the updates to their properties prior to listing them for sale. (It’s important to note that this is not a service provided by a typical agent.)

“I just had three sales last month where I lent the sellers the money needed to make the repairs and they netted almost triple the amount of money we put into the house,” Umanzor says. “It’s a win-win for everybody. Buyers are happy, sellers are extremely happy, and I get a home that is ready to sell that’s presentable.”

Consider a pre-listing inspection

A pre-listing home inspection is the same as a standard home inspection except that the seller pays for it before listing their home on the market. It may sound like a counterintuitive step for an as-is sale, but getting the inspection results upfront can illuminate any issues that could affect the value of the home and inform an accurate pricing strategy.

If a buyer requests additional price reductions based on their inspection, you can point out that the estimated cost of certain repairs was already factored into the listing price.

Although Umaznor doesn’t order pre-listing inspections for the sellers he represents, he knows some agents who will bring an inspector in before listing a home. “In the state of Maryland, it is mandatory that you must disclose any defects that you’re aware of as the homeowner,” Umanzor says. “So once you do that inspection, you must disclose all of that.”

Umanzor went on to say that if the seller chooses to do an inspection, and then uses the information to make improvements to the property before listing it for sale, it could be beneficial. By disclosing the inspection report, as well as the improvements they made to the property based on the inspector’s notes, it could give the buyer peace of mind, he says.

Price to reflect as-is condition

The median sale price for homes in Maryland hit $436,000 in June 2024, a 5.1% increase over 2023.

Umanzor says that homes sold as-is in the area typically sell for less than regular listings and have a reduced buyer pool, which is why he always provides an offer to help finance home improvement projects for his sellers prior to listing a house.

To illustrate the potential value of making improvements before listing, Umanzor shares a real-life situation where he helped one seller make $60,000 of repairs to their home, which was completed in about a month. “We got seven offers for the property and sold the house for $468,000. After the repair cost, my clients got $58,000 more than if the property was listed as-is.

For a head start on your own property’s value, try HomeLight’s Home Value Estimator (HVE) for a free estimate.

Our HVE combs public data including tax records and assessments and pulls recent sales records for other properties in your neighborhood. Using a short questionnaire, we also factor in specifics about your home such as the property type and described condition. Input your address, and we’ll provide you with a preliminary home value estimate in as few as two minutes.

Do ever-so-light preparations

Even for as-is home listings in Maryland, Umanzor typically recommends sellers complete the following:

• Declutter and remove personal items from the house
• Deep clean the house
• Mow the grass and spruce up the yard
• Eliminate odors, especially pet odors
• Consider freshening up the paint

“Making the house clean and appealing is mandatory,” he says. “If you can also give it a fresh coat of paint, that can go a long way.”

Professional photographs to show potential

Your home listing warrants professional photography no matter what type of condition the property is in. A professional photographer will take steps to shoot each room from the best angle, ensure optimal interior and natural lighting, and edit for the ideal brightness and exposure.

Since 100% of homebuyers start their search online, making a strong first impression with great images is crucial. Real estate listings with professional photography sell 32% faster, while those with aerial photos sell 68% faster. Professionally edited photos can significantly boost a home’s appeal and frequently lead to higher offers.

While many real estate agents offer professional photography as part of the listing process, some do not. In this case, sellers can choose to hire a professional photographer, take their own high-quality images, or use AI-enhanced tools to capture their property photos.

Highlight the surrounding area

Location is crucial for buyers looking for a home with potential. In your as-is listing, be sure to mention if your home is near any of the following:

• Parks or outdoor recreation areas
• Area schools
• Restaurants and/or shopping
• Interstate access
• Coffee shops
• Transit line

Include the term ‘as-is’ in the listing

Unless you explicitly mention that your house is being sold as-is, buyers will have no idea of your intentions with the listing. Other common descriptors mentioned in as-is listings in Maryland include “priced to sell,” “fixer-upper,” or “handyman special.”

To balance the focus on as-is condition, work with your agent to craft a property description that highlights the best features of the home, such as acreage, historical significance, structural integrity, unique architecture, and any recent renovations or updates.

Understand buyers may still negotiate

Listing as-is provides no guarantee that buyers won’t try to negotiate savings on their purchase, even on an asking price you felt was already reduced to reflect the home’s condition. One of the best defenses you can have is an agent who takes a hard stance to prevent a deal from going south for the seller.

“We see different scenarios happening every day, so when I get a contract, I know what questions I need to ask to get the best offer for my client,” Umanzor says. “Not every buyer who has an approval letter will get to the finish line.”

Be aware of minimum property standards for certain loans

When you place your home on the market, it’s hard to predict if your top offer will come from a cash buyer or a buyer pre-qualified for a home loan.

But if you do end up working with a financed buyer, be aware that different mortgage types (such as conventional loans or government-backed FHA, USDA, or VA loans) have different minimum property standards. These are standards related to the overall condition of a property which will play a role in the willingness and/or ability of a lender to finance a buyer’s loan.

Before properties can be financed, their value and condition typically are examined by a state-licensed, independent appraiser contracted by the buyer’s mortgage company.

If you’re unsure whether your home will meet appraisal requirements, you can start by taking a look at the FHA minimum property standards. If your house complies with FHA, then it complies with most other lenders’ requirements.

Prioritize a cash offer if you receive one

On occasion, conventional lenders may even finance a fixer-upper property sold as-is, and it’s not impossible to finance a fixer-upper with an FHA loan. However, if you’re selling a house as-is — especially one that needs heftier repairs — you may want to consider accepting a cash offer if you receive one. Cash eliminates the lender-ordered appraisal as well as the time it takes to close on the buyer’s loan, creating a faster and clearer path to settlement.

“Let’s say there’s peeling paint on a home, or a safety issue such as a leaking roof, mold, or missing railings,” Umanzor says. “These are things that will be concerning to a bank and most will want those issues taken care of.”

Steps to sell directly to a cash buyer

Now that we’ve covered the general process of listing a home as-is, let’s discuss the alternative of working with an investor. While the process varies from business to business, the steps to selling your home to a house-buying company typically go something like this:

If you aren’t sure where to get a cash offer, consider Simple Sale, a solution from HomeLight. With Simple Sale, you tell us a bit about your home, such as whether it’s a single-family home or condo and how much work it needs. From there we’ll provide you with a no-obligation all-cash offer to buy your home in as few as 24 hours, skipping the months it can take to sell the traditional way.

Skip repairs

No need to call the roof inspector or drain your savings to replace the HVAC. HomeLight will provide an offer for homes in almost any condition.

Sell when it’s convenient

Want to get out right away? Or need a little more time to pack? Either way, we’re flexible. Pick a move date that works for your schedule within 30 days of closing.

Close with certainty

Cash buyers don’t need a lender’s involvement to purchase a home, meaning they can move nimbly and quickly compared to someone who needs financing.

Interested in requesting a cash offer? Consider starting with HomeLight’s Simple Sale platform, which provides cash offers for homes in almost any condition nationwide. Sellers can receive an offer within 24 hours and close in as little as 10 days. No staging. No showings. No open houses.

Want to know more about the Simple Sale experience? Hear it firsthand from one of our valued clients in the video below.

Additional ‘We Buy Houses’ companies in Maryland

Below we’ve compiled a list of some of the leading companies that purchase homes as-is for cash in Maryland and information about each.

Pros of selling as-is to an investor

• Save money on home preparations.
• Sell fast — receive an offer in as little as a few days, and close as quickly as one to two weeks later.
• Skip repairs. Most house-buying companies purchase properties in as-is condition, even those that need major repairs.
• No staging. No repeated showings. No open houses.
• Arrange for a flexible move-out date.

Cons of selling as-is to an investor

• Offers are likely to be much lower. Investors typically pay 70% of what they estimate to be the home’s after-repair value (ARV).
• Sellers will have little room to negotiate. Most cash buyer offers are going to be “take it or leave it.”
• Although many home-buying companies are legitimate, some are not. It’s always a good idea to be vigilant about possible scams.

How much will you make from an as-is home sale?

There is no simple equation for calculating how much you’ll net from an as-is sale. If you list on the market with an agent, you’ll need to account for the cost of agent commissions (about 5.8% on average) and other closing costs such as title fees and taxes, but are likely to field higher offers from buyers and see more competition for the home.

Editor’s note: On March 15, 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more.

Different types of investors and house-buying companies also offer varying amounts for homes, largely dependent on their exit strategy. While fix and flip investors usually pay about 70% of the home’s ARV, buy-and-hold investors who plan to rent out your property may be able to pay more. In addition, investors often are willing to cover a seller’s closing costs, which can add up to about 1% to 3% of the sale price.

HomeLight’s net proceeds calculator can be helpful for running through some possible selling scenarios and estimating your final earnings.

Ready to sell your house in Maryland?

Although each home sale is unique, you should now have a solid understanding of the general process of selling a house as-is in Maryland. With this knowledge, you can start considering which approach will suit you best.

Whether you choose to list as-is with a real estate agent or work with a direct homebuyer, a home doesn’t have to be in perfect condition to sell — so long as you provide disclosures as necessary, set the right price, and know what to expect going in. Whenever you’re ready to take the next step, HomeLight would be happy to assist with your real estate needs. Connect with a top agent near you or get started with a cash offer from Simple Sale.

Writer Lindsey Bergeron contributed to this post.

Header Image Source: (Seth Hoffman / Unsplash)