Seeing “as‑is” in a Redwood City listing can feel like a red flag. You want a smooth transaction with no surprises, and that phrase raises questions about repairs, financing, and risk. The good news: in California, “as‑is” has a clear meaning, and you can protect your interests as a buyer or seller. This guide explains what “as‑is” really means, how it works in San Mateo County, and the smart steps to take before you sign. Let’s dive in.
What “as‑is” really means
“As‑is” generally means the seller does not plan to make repairs or pay for repairs discovered after you open escrow. It is a contract position on repairs, not a free pass from legal duties. In California, sellers must still disclose known material facts that affect the property’s value or desirability.
There are two separate pieces to keep straight:
- Listing language that says “sold as‑is” signals the seller’s preference.
- Contract language or an addendum sets the legal terms for contingencies and repairs.
An “as‑is” label does not excuse a seller from providing required disclosures. It also does not prevent a buyer from seeking remedies for fraud, concealment, or intentional misrepresentation if a seller hides known defects. Lenders and appraisers can still require repairs for safety or habitability before funding a loan.
Seller duties that still apply
Even in an “as‑is” sale, California’s disclosure rules remain in force. You must provide complete, honest disclosures of known issues.
Key disclosures and documents typically required:
- Transfer Disclosure Statement and related seller questionnaires.
- Natural Hazard Disclosure that addresses flood, fire, and seismic zones.
- Federal lead‑based paint disclosure for homes built before 1978.
- HOA documents if the property is in a community association.
- Notices about special assessments, Mello‑Roos or CFD obligations if they apply.
If you knowingly conceal defects or misstate the property’s condition, you risk claims for fraud or misrepresentation. A best practice is to complete disclosures thoroughly, consider a pre‑listing inspection, and gather repair estimates for major items. Clarity supports pricing, reduces renegotiation, and helps prevent disputes later.
When to use “as‑is” as a seller
You might favor “as‑is” if you prefer a simpler process or do not want to manage repairs. Estate sales, properties with deferred maintenance, and homes with known code issues are common examples. In Redwood City’s competitive market, you may still attract strong offers while selling “as‑is,” depending on condition and pricing.
If you choose this route, define the terms clearly in the purchase agreement. Spell out which contingencies are allowed and the buyer’s rights within each timeline. Consider consulting an attorney if you have complex title issues, unpermitted work, or defects that could become contentious.
Buyer implications and protections
“As‑is” does not mean you have to accept unknown risks. You can structure your offer to preserve protections and make informed decisions.
Smart inspection strategy:
- Keep your inspection contingency whenever possible. Do not waive it lightly.
- Order a comprehensive home inspection and consider specialty inspections for foundation, termite, roof, drainage, and sewer lateral.
- In Redwood City, ask about seismic retrofit work, hillside stability near the lot, and water intrusion or drainage performance during storms.
Helpful contingency language:
- Keep appraisal and loan contingencies, since appraisers can flag safety or habitability issues and lenders may require repairs.
- Clarify that while the seller is not obligated to repair, you can request credits or cancel within the contingency period if findings are unacceptable.
Financing and appraisal considerations:
- Conventional lenders may allow “as‑is,” but they still expect a safe, habitable property. FHA and VA loans often apply stricter minimum property standards.
- Appraisers can condition value on certain repairs. If repairs are required, you and the seller can address them through credits, repairs before close, or escrow holdbacks if allowed by the lender.
Title, escrow, and insurance:
- Title insurance covers ownership matters, not physical condition. Easements, liens, and encroachments must still be addressed.
- Some insurers may hesitate to bind coverage if a roof is failing or major systems are unsafe. Confirm insurability early.
Redwood City specifics to check
Local context matters. Redwood City is in a high‑demand Mid‑Peninsula market, which can shape how “as‑is” listings perform and how aggressive buyers are with contingencies.
Local condition themes:
- Seismic risk and retrofit status, especially in older homes. Ask whether retrofit work was permitted and documented.
- Drainage and water intrusion, including hillside or landslide exposure near canyons and ravines.
- Termite and other wood‑destroying pests. Pest inspections are customary in California.
- Unpermitted additions or remodels, which can affect financing, insurance, and resale.
- Flood and fire risk. Natural Hazard Disclosures will indicate if the property is in a designated zone.
- Sewer laterals in older neighborhoods. Some municipalities require repairs or have compliance programs at sale; confirm current requirements.
Local records and agencies to consult:
- Redwood City Planning & Building Department for permits and code status.
- San Mateo County Assessor and Recorder for parcel data, taxes, and recorded documents.
- FEMA flood maps and state or county hazard mapping resources for flood and seismic context.
Negotiation plays that work
For buyers:
- Ask for a closing cost credit in lieu of repairs when defects are found.
- Seek a price reduction tied to inspection estimates for major items.
- Bring a contractor during your contingency period to scope costs and reduce unknowns.
For sellers:
- Use a pre‑listing inspection to surface issues and set a realistic price.
- Disclose thoroughly and provide documentation of repairs or permits to build trust.
- Use clear contract language that defines “as‑is,” permitted contingencies, and timelines for buyer review.
Quick seller checklist
- Complete all required disclosures: TDS, NHD, lead‑based paint, HOA packet, and any special assessments.
- Order a pre‑listing inspection and gather estimates for significant items.
- Disclose known defects in writing and keep documentation organized for buyers.
- Confirm permit history with Redwood City’s Building Department.
- Decide on the As‑Is Addendum or specific contract clauses with your agent; consult an attorney when issues are complex.
- Price to reflect condition and current Mid‑Peninsula market dynamics.
Quick buyer checklist
- Preserve your inspection, appraisal, and loan contingencies.
- Order a general home inspection plus specialty inspections as needed.
- Review all disclosures in detail and follow up on ambiguous answers.
- Verify permit history and check for open code issues with Redwood City.
- Discuss property condition thresholds with your lender early in the process.
- Consider an escrow holdback or seller credit when lender‑required repairs arise.
Common myths to avoid
- Myth: “As‑is means no disclosures.” Reality: sellers must disclose known material defects under California law.
- Myth: “You cannot negotiate after inspections.” Reality: you can request credits or cancel within your contingency period.
- Myth: “Lenders will not fund as‑is.” Reality: many will, but repairs may be required for safety or habitability.
- Myth: “Waiving inspection speeds closing with little risk.” Reality: it increases your exposure to unknown defects.
The bottom line
“As‑is” is about repair expectations, not a waiver of legal responsibilities or buyer protections. With the right disclosures, inspections, and contingencies, you can move forward confidently in Redwood City. Whether you are pricing a property with deferred maintenance or evaluating a purchase with open questions, a clear plan will save time and stress.
If you are weighing an “as‑is” sale or offer and want a tailored strategy for the Mid‑Peninsula, connect with Stephanie Von Thaden for discreet, data‑driven guidance.
FAQs
What does “as‑is” mean for Redwood City homes?
- It generally means the seller will not make repairs after acceptance, but sellers must still disclose known material facts and buyers can keep contingencies for inspections, appraisal, and financing.
Do sellers still have to disclose defects in California?
- Yes. California requires sellers to disclose known material defects and provide mandated forms like the Transfer Disclosure Statement and Natural Hazard Disclosure, even in an “as‑is” sale.
Can I cancel an “as‑is” purchase after inspections?
- If you keep your inspection contingency, you can request repairs or credits and may cancel within the contingency period if findings are unacceptable.
Will my lender allow an “as‑is” purchase in San Mateo County?
- Often yes, but lenders and appraisers may require repairs for safety or habitability before funding, especially with FHA or VA loans.
What local issues should I check in Redwood City?
- Review seismic retrofit status, drainage and water intrusion, pest activity, flood or fire zones, permit history, and the condition of older sewer laterals.
Should a seller get a pre‑listing inspection for an “as‑is” sale?
- Yes. It surfaces issues to disclose, supports pricing, reduces renegotiation, and helps prevent post‑closing disputes.
