Michael Samuels provides legal services to FSBO and other real estate clients in Cincinnati and throughout Ohio.

Does an as-is FSBO listing prevent unfavorable disclosures?

On Behalf of | Oct 17, 2023 | FSBO

Homeowners in Ohio sometimes decide to list their property for sale without the support of an agent. Listing a property for sale by owner (FSBO) will often allow the seller to keep more of the final sale price because they don’t have to pay commission to real estate agents. 

However, they may still need some help during that process to avoid making mistakes that could end up costing them money. One common tactic people might consider when listing real property for sale without an agent is to sell it in as-is condition. Doing so does not always have the benefits people expect. 

Sellers must still disclose known defects

The basic idea behind an as-is listing is that the buyer assumes all liability for any issues or defects at the property. They should inspect the property carefully to verify the condition of crucial systems, such as the furnace and the foundation. 

However, an as-is listing does not exempt a seller from the requirement to disclose known defects. They will still have to provide details about any issues that they are aware of in writing to the potential buyer. Failing to do so would likely mean that the seller could face litigation in the future. 

Issues that could lead to insurance payouts from an agent’s specialized professional insurance coverage could become solely the responsibility of the owner who listed the property FSBO. Particularly if property defects are significant and will cost a lot of money to address, buyers might initiate litigation to hold the seller accountable for failing to disclose those issues. 

Identifying and avoiding common FSBO mistakes may help sellers maximize the return on a transaction.