Selling a house as is in NJ

When selling a house “as is” in NJ property sellers chose to avoid the high cost of repairs. This can be a good strategy, as sellers typically spend more than $14,000 on home improvements.

If you are looking on selling a house in New Jersey and it is in poor condition, to maximize your profits you will need to repair it. However, this takes time and budget, so selling a home “as is” could be a tempting solution. But is it legal in the Garden State? Our NJ real estate attorney will clear up any doubts you may have.

Selling A House “As Is” in NJ In 2025

Selling a home as is in New Jersey allows the seller to save time and money on the costs of possible repairs to the property. Although homes can be sold as-is, the law establishes certain disclosure requirements.

Regardless of whether a property is being sold as-is or with repairs, the seller must follow certain guidelines. Basically to prevent the buyer from walking away or worse, taking them to court.

Is It Legal To Sell A House “As Is” In New Jersey?

In New Jersey, it is legal to sell a home as is, but certain conditions must be met to do so. What’s more, although the term “as is” is included in the contracts, in most cases the homes cannot be sold that way. This is because both the municipality and the lender may require certain adjustments for various reasons. 

Some more common examples are: 

• Fix security problems, or 
• Correct fire code violations. 

Knowing this, the reality is that behind the term “as is”, there is an assignment of responsibilities.

What’s more, if you sell a house with an underground oil tank, the sellers are obligated to remove it at their own expense. This is in the event that there is an “as is” clause in the contract. If the tank is not removed, then the closing of the transaction cannot be carried out.

Therefore, sellers should not get their hopes up thinking that when they sign the contract they will simply receive money, since it is never sold “as is.”

What Does “As Is” Mean In NJ Real Estate? 

We are often asked: What is an as-is home sale in NJ? In short, “As is” in real estate transactions, means that the buyer will obtain a property in its current condition. 

Selling as is means that the buyer is willing to accept a property with all its defects. However:

• “As is” is also a legal term used to disclose information about the current condition of a property.
• Owners must honestly disclose any defects in the property.
• Under the Consumer Protection Act, real estate agents must maintain complete confidentiality when discussing property defects, or risk being prosecuted under this law.

Are you a first-time home buyer looking for specific programs in this regard? You may be interested in our blog on the NJ first-time homebuyer program.

Can You Sell A House In NJ In The State It’s In?

New Jersey allows you to sell a home “as is,” but the seller must follow certain steps to do so:

• Confirm to the buyer that you have not made any modifications to the property that go against the laws of the area. Otherwise, the seller must stipulate that the changes were made in accordance with the law. 
• Report whether appliances and other systems are in good working order.
• Explain how the property has been used before being sold “as is.”

The seller could pay additional taxes if it is discovered that they made modifications. This is usually known through the NJ certificate of occupancy. If discovered after the sale, the new owner will be responsible for paying them.

Do you know that an undocumented individual still has options to buy property in the United States? If you are interested in the topic, check out our popular blog: “ Can an illegal immigrant buy a house?”.

Can A Buyer Inspect The Property?

Regardless of whether it is an “as is” home, the buyer has the right to have an inspection done before purchasing the home. Most real estate contracts have a clause requiring a home inspection in New Jersey.

• This clause allows buyers to cancel a contract if a qualified home inspector identifies existing undisclosed problems with the property.
• It is important to always perform a proper home inspection before continuing with the home buying process.
• Even if the seller does not repair the defects found, the inspection report should tell the buyer the current condition of the home.

Can A Seller Back Out Of An “As-Is” Offer?

There is a time period of 15 days for the buyer to inspect the property. During this period, the buyer has the option to withdraw from the offer without being penalized or losing money. 

It is important to consult with a real estate attorney in these scenarios. Our lawyer Carolina T. Curbelo is specialized in this real estate area.

What Should Be Disclosed When Selling A Home In NJ?

The sellers must inform the buyer about any “latent” defects they are aware from in regards to the house. These are generally difficult problems to detect, but if the seller does not disclose them, the buyer can cancel the contract. 

Still, failure to disclose is actionable only if the defect affects a reasonable buyer’s purchasing decision. That said, things that need to be disclosed include:

• Environmental problems. For example, radon buildup on the property.
• Possible disputes with neighbors.
• Any violation of municipal codes.
• Fungal rot.
• Illegal extensions or remodeling on the property.
• Parts of the property that flood.
• Damage or failure to the structure of the property or systems within the property.
• Material defects, such as loose or missing lining.
• Unsafe health conditions, such as lead paint or asbestos.
• Possible fraud in the home or present or past material misrepresentation.
• Age of air conditioning and heating.
• Conditions of the electrical system.
• Latent material defects such as plumbing leaks, roof damage, termites, defective drywall, foundation cracks and others.

Sellers are not required to disclose a death that occurred in an “as-is” home in New Jersey. Please consult with our attorney to discuss disclosure obligations.

The risk of a flood or fire in a home in New Jersey is often high. Therefore, it is advisable to have New Jersey flood insurance and and compile with the NJ smoke detector requirements and certificate.

The Two Sides Of The Coin When Selling A House “As Is” In NJ

The reality is that choosing to sell your home “as is” can bring certain benefits if you lack the following:

• Time, 
• Resources, or 
• Willingness to carry out repairs prior to sale. 

Not everything can turn out as you expect. This is because such a decision, although initially seems to save time and money, can be costly. What’s more, it could reach or even exceed the home’s repair costs.

As if that were not enough, the sale of a home with significant defects can take considerably longer, even in a favorable market. This is because potential buyers may view the property as a risky investment. 

Knowing this, we recommend that you contact our real estate experts, because sometimes making repairs is more profitable than selling it “as is.” 

How Much Do I Lose By Selling A House “As Is” In NJ?

If your property needs major repairs and you market it “as is,” you will limit your pool of potential buyers to investors. If your property is in good condition, you have the option of selling it at or slightly below fair market value. 

In this scenario, most potential home buyers can finance the purchase with a mortgage.

Advantages And Disadvantages Of Selling A House “As-Is” In NJ

Advantages

• Save money. Home renovations can be extremely expensive. However, when you sell a home “as-is,” you don’t have to spend money or go into debt on repairs or modifications.
• Less stress. Sellers have the option of selling their home “as is” to companies for cash. By doing this, sellers will be able to get money quickly and will not have to deal with real estate agents or haggle over costs.
• Faster sales. Selling a house as-is in NJ is usually much faster than the traditional method.
• Anticipated spendings. Sellers can tell potential buyers how much they are willing to spend on anticipated repairs. This allows the closing of the property to be more predictable for both parties.
• No inspection contingencies. Typically, sellers spend approximately $14,000 on home inspection concessions. However, in an “as is” sale, you can pre-establish a discount or simply not negotiate further.

Find out more about concessions in: “What seller concessions can be used for.”

Disadvantages

• Less income per sale. Sometimes buyers may believe that the seller is desperate to sell their property or assume that the property has major flaws. This can reduce the value of the offer on the home.
• Possible repairs to be made. Selling a home “as is” does not exempt sellers from making some repairs. In fact, most buyers may try to negotiate repair costs with the seller.
• Fewer buyers. Unlike selling a home the traditional way, selling one “as is” usually attracts fewer buyers. This is because it will only attract buyers willing to make slight modifications.
• Low property value. Because buyers may have a negative impression of the home, they may assume that it has significant flaws and will require spending a lot of money to repair.
• Possible prices below fair market value. The sale is likely to be made to a cash-paying buyer. Therefore, buyers typically offer between 50% and 70% (or even less) of fair market value (FMV).
• Negative assumptions by the buyer. Potential buyers may mistakenly assume that your property has serious defects, which may not be true. These negative assumptions affect the offers your home could receive.
• Mortgage challenges for buyers. In New Jersey, mortgage lenders generally avoid financing properties with structural or safety issues. FHA loans, VA loans, and many conventional mortgages do not allow you to finance properties that require significant repairs.

Learn more in our blog on the types of mortgage loans in the United States. 

Tips For Selling A House “As-Is” In NJ

To sell a home “as is” in New Jersey, you generally follow the same guidelines as when selling a regular home. However, in some respects a somewhat different strategy is also required.

1# Know Your Selling Options

There are generally 4 options when selling a house as-is in NJ. These are:

1. List on a cash marketplace. Cash marketplaces provide maximum visibility for your property. As a result, it exposes you to companies that purchase homes for cash in this state. 
2. Sell ​​it for cash. Another option is to simply sell it for cash to potential buyers. These buyers usually make cash offers within 24 to 48 hours, but offer a value between 30% and 70% of the FMV. 
3. Sell your house to house flippers. Property lovers are constantly looking to acquire properties for investment. Therefore, when you sell your home “as is” to an investor, they will renovate it and then resell it.
4. Sell ​​it as owner. Selling a home in New Jersey as an owner means doing so on your own. A company focused on this can allow you to sell it without incurring real estate agent commissions.

2# Highlight The Positive Aspects Of The House

Marketing a home “as is” can be complex, but by highlighting its positive aspects, you can attract more potential buyers. To do this, the seller must:

• Emphasize the positive aspects. Whether they are the services located in the area of ​​​​the house, the nearest school district, lighting, low consumption, the appliances that the home has and so on.
• Describe the property. When preparing a description, you should make sure to include all the striking words of the property, but without exaggerating.
• Select an appropriate price. If you don’t know what to price it, a real estate agent will take care of it.
• Maintain transparency. Sellers should always be upfront and honest about any defects found in the property. Additionally, when selling this type of house, it must be mentioned in the real estate contract that the sale is “as is.”

3# Repair Any Serious Defect

Sellers who list their home for sale “as is” must repair certain elements that may be serious for potential buyers:

• Termite infestation. Termites are one of the most common property problems in the U. S. and can turn away buyers. A termite treatment can cost on average about $600 or so.
• Outdated roof. If the roof is leaking, it is ideal to repair it. This is because flooding is common in New Jersey. Roof repair costs can range from $200 to $7,000.
• Damaged foundations. Weak foundations of a property pose a major threat of collapse. Repairing this usually ranges between $4,000 and $7,000.

It should be noted that the fair market value of your home decreases as the number of repairs needed increases. To improve this value, you can carry out repairs with a high return on investment. For example: Fix a squeaky doorknob or replace a leaky sink pipe.

4# Follow The Best Strategies To Sell The House “As Is”

• Reveal all details of the property. It is essential to disclose all details to buyers, as this will help them be informed about whether the structure is habitable and safe.
• Advertise “as is”. It should be mentioned that the house to be sold is “as is”, since it allows buyers to understand that the house is being sold in its current conditions and is different from a regular sale.
• Inspect the property. Sellers should perform a pre-listing inspection of the property to ensure it is safe to live in. In addition, this generates transparency and trust in buyers.
• Make slight improvements. Sellers can also carry out minor repairs if necessary. This includes cleaning, painting the house, mowing the lawn, and so on.
• Keep intentions clear. It is important for sellers to keep all their intentions clear. This is because buyers may back out after discovering previously undisclosed problems. 
• Maintain a fair price. Some buyers may ask their contractors for estimates or will do a home inspection to make sure the price is fair. Therefore, you should never ask for a price above the estimate.

5# Know The Usual Expenses Of Selling The House As Is

Here are some of the common expenses that “as-is” home sellers generally face in New Jersey:

• House preparation costs. Typically, home sellers can spend between $4,000 and $12,000 or almost 2% of the home’s sales price. For “as is” houses you may not have to invest in that sense. When sold “as is,” the cost may only be around $200 for a professional cleaning.
• Real estate agent fees. These agents’ fees typically exceed $20,000 or are around 5% of the home’s sale price. “As-is” home sellers can sell their home without the need for a real estate agent.
• Incentive rates. In some cases, sellers may have to pay a home inspection fee and a home warranty to the buyer. These costs may vary.
• Closing costs. Closing costs for a home in New Jersey involve the recording fee, real estate title fees, and New Jersey realty transfer fees. In an as-is home, the buyer may not be able to be asked to pay for it.
  • In these scenarios, the seller may have to pay for title insurance in New Jersey, which is generally paid by the buyer. 
  • These expenses can amount to more than 1% of the property’s sales price.
• Relocation costs. If a home is being sold “as-is,” the seller must take into account the costs associated with moving to their new home. Usually the price is 2% of the sale price.

6# be thorough With The Real Estate Contract

The sales contract must be completed “as is” to sell your home in New Jersey. Keep in mind that potential buyers will review the real estate contract in detail and may:

• Inspect property in New Jersey.
• Negotiate repairs or treatments in future modifications.
• Have the option to terminate the contract.

Curbelo Law Helps You when Selling A House “As Is” In NJ

Selling a run-down home in New Jersey can be a difficult task. If the seller does not have the patience to manage the renewals or procedures necessary for this, it is best to have a lawyer who is an expert in this area.

In fact, the fundamental function of the lawyer is:

• Ensure that the responsibilities of each party are clearly specified. This will be in the document signed by both parties. 
• In addition, it will also establish limits that allow either party to cancel the contract in certain circumstances.
• Likewise, it is responsible for ensuring that everything is done in accordance with the law and what has been agreed. Furthermore, the lawyer has the responsibility of coordinating the procedures so that, in the event of cancellation, the client does not lose unnecessary time and money.