Selling a Home As Is in Maryland (A-to-Z Guide)

When a seller lists a house ‘as is’, it means the property is sold the way the buyer finds it. No repairs, restoration, replacement, or modifications will be made by the seller.

The standard Maryland property sales contract doesn’t include a formal ‘as is’ condition clause, but it does have an ‘as is’ disclaimer statement that we’ll discuss later in this article.

Yes, you can sell a home ‘as is’ in Maryland, but there are a few legal requirements that must be met to do that.

“How does selling a house ‘as is’ work in Maryland?” Before we get into the details of the sale, we need to explore the property disclosure that’s mandated under Maryland law.

A property disclosure lets potential buyers know important information about a listed house.

The form reviews features such as the source of the water supply, type of heating and cooling, and other property details, including items like the age of the roof.

The disclosure also offers a list of defects known to the seller at the time of the sale. Buyers use disclosures to understand the repairs needed.

A disclosure also provides information to assist buyers in determining the value of the property.

Homeowners selling a house in Maryland must choose one of two disclosure options. The owner isn’t required to hire a professional home inspector.

The forms simply require the owner to list what they know about the house.

The first option is the ‘as is’ disclaimer statement. This statement allows the seller to sell the property ‘as is’, but also requires the owner to disclose any latent defects to potential buyers.

A latent defect is something you know about the house that poses a risk to health or safety.

The owner using a disclaimer statement makes no warranties or guarantees about the condition of the property.

The second option is to make a full disclosure. Sellers using this option must itemize all known material defects.

A material defect is anything that would materially decrease the value of the property.

The full disclosure doesn’t ask sellers about hydraulic fracturing (fracking), bed bug infestations, or a haunted house.

It does ask sellers to disclose details about the home’s systems, mechanicals, and the physical location of the house.

Both disclosure options mandate revealing any conditions that might risk health or safety.

Selling a home with asbestos, radon, or mold needs to be disclosed when tests have been done on the property for these problems.

If remediation was done for these conditions, that also needs to be disclosed on both the full disclosure and disclaimer statement.

Selling a house with septic system failure, foundation issues, or unpermitted work needs to be disclosed on the full disclosure.

Selling a house with fire damage needs to be reported on the full disclosure.

Homeowners selling a house with termite damage are required to provide a detailed disclosure on the full disclosure form.

Flooding is a major section of the property disclosure. Owners selling a house in a flood zone and those with water infiltration or water damage must disclose these conditions on either form.

Selling a house with polybutylene pipes isn’t specifically required on either disclosure, but the owner must identify the type of plumbing used in the house on the full disclosure form. This includes any use of lead pipes.

Maryland houses built before 1978 must complete a federal lead paint disclosure. This is required from sellers using either disclosure form.

Homeowners selling houses constructed before 1978 must disclose Environmental Protection Agency certifications for painters and contractors doing projects on the home that disturb paint.

You can leave stuff behind when you sell your Maryland house ‘as is’. The Maryland sales contract states all property fixed to the residence is sold with the house.

The contract also states that existing items that are not fixed are considered personal items. Fixtures are home features like faucets, ceiling fans, and permanent lighting.

Items that aren’t fixed can be left if they are included under the “Inclusions/Exclusions” section of the property disclosure. The sales contract should also include a statement about the items.

To decide whether you should sell your Maryland house ‘as is’ or fix it up, you need to ask yourself a number of questions.

Do you have the skills and time to do the work yourself? Do you have access to contractors who can do the work? Do you have the time to supervise the work?

And, maybe more importantly, do you have the money to pay for repairs before the house is sold?

Let’s consider the advantages and disadvantages of each option — sell ‘as is’ or do the fixes? First, here is why sell a Maryland house ‘as is’.

Pros of Selling Your House As Is

• You’ll eliminate the need to locate contractors to do the work. You also won’t be on the hook to supervise them.

• Selling ‘as is’ saves time, particularly when you sell your property to a Maryland cash home buyer. Cash buyers don’t need the lengthy loan approval process to close a sale.

• Most ‘as is’ buyers skip using a Maryland property inspector. This eliminates the back-and-forth negotiations over repairs and who pays for them.

• When sellers eliminate or reduce the number of inspection reports on a house, that means fewer reports to share with prospective buyers. All reports, even those done for other prospective buyers, must be shared with other potential purchasers.

• Many ‘as is’ buyers will allow sellers to simply move out, without any cleaning. Some will allow sellers to leave items behind on the property.

Cons of Selling Your House As Is

• You won’t receive a turnkey house price for your property. Your home needs repairs, and the lower price will reflect the cost of those repairs. Evaluating the home seller closing costs helps you decide if the offers are acceptable.

• Most buyers aren’t interested in purchasing a fixer, so your buyer pool will be extremely limited. Fortunately, there is a pool of investors who look specifically for fixers to purchase. We’ll discuss these buyers in the next segment.

The next question to address is, “How do I go about selling my house ‘as is’ in Maryland?”

One option is marketing your house to a cash real estate buyer in Maryland.

How to Sell a House As Is, Fast and For Cash Directly to an Investor

Before we get into the details of selling to an investor, let’s introduce the investors known as “cash house buyers”.

Who Are Cash House Buyers?

Cash house buyers focus on buying properties as an investment. These individuals or companies invest by using their own cash or they pool money from private sources.

Sales to investors take less time to fund compared to buyers using traditional mortgages from banks or credit unions.

Cash house buyers buy investment property in Maryland that needs minor repairs or major rehabbing. The buyers then repair or remodel the property and resell it to others.

The industry term for this is “flipping” a house. The goal of these investors is to make money from the sales.

Some real estate investors in Maryland focus on buying property for rental income.

Some of the purchased residences are currently used as rentals, while others are houses that will be transformed by the investor into rental units.

Some homeowners might need a quick sale and close, and these property owners have the advantage of speed when selling a house to an investor.

Some groups needing a speedy sale include:

• heirs selling real estate in probate
• owners selling a home that needs work
• couples selling a house during divorce
• empty nesters looking to downsize
• employees selling a house for job relocation
• owners selling when facing a foreclosure
• homeowners selling a house with taxes owed

Cash house buyers work with investor-friendly title companies in Maryland to close the sale. These firms have experience in moving quickly to close escrow.

Pros of Selling Your House As Is Directly to an Investor

• A company that buys houses offers a quick sale. Selling to an investor means your house can close in a week or two.

• Investors use cash. There’s no need to go through the inconveniences of meeting an appraiser or inspector required by a mortgage lender to evaluate a buyer’s application.

• When you don’t use an agent, you’ll save those real estate commissions.

• Investors typically pay their closing costs and also the closing costs for the seller. This is significant savings for sellers.

Cons of Selling Your House As Is Directly to an Investor

• Investors don’t pay market prices for homes. They deduct the cost of the home repairs and resale margin from the asking price.

• You won’t have a real estate professional acting as your fiduciary in the transaction.

Finding the Best Cash House Buying Company

Finding a cash house buying company is easy by using a basic search engine. Use a few general terms like:

• we buy houses Frederick MD
• sell my house fast Frederick MD
• cash house buyers Frederick MD
• sell my house for cash Frederick MD
• iBuyer companies Frederick MD

Substitute your city or town to find local investors. If you live in a rural area, search by using the nearest large metro area.

How to Choose an Ethical Investor?

You can find a bunch of home buying companies, but how do you know they are trustworthy?

Look for an “About Us” page on an investor’s or company’s website. It should provide information on the prospective investor.

If the investor or principals in the company aren’t identified, move on to the next names on your list of prospects.

Once you’ve found a few investors that meet your basic qualifications of at least three years in the industry and a solid record of closing transactions, it’s time to research a few other places.

The local branch of the Better Business Bureau (BBB) receives complaints about local investors, even if they aren’t members of the BBB.

Check to see if there are any complaints filed there against anyone on your list.

Next make a call or look online to find any complaints filed against anyone on your list with the Maryland Office of the Attorney General.

In-depth research takes time, but you can request cash offers from as many as five investors by submitting just one online request to HouseCashin.

HouseCashin handles the pre-screening and vetting of partner local investment companies.

Request your cash offers from HouseCashin now.

How to Sell a House As Is by Listing It by Owner

Selling a home in Maryland as a “for sale by owner” or FSBO means you’re taking charge of every aspect of the process, and one of the first steps is to determine your home’s value.

This helps you set a fair and competitive asking price that attracts buyers, while ensuring you get the best return.

Let’s check out some of the ways you can market your FSBO listing.

Where Can You List a House For Sale by Owner?

The most challenging part of a for-sale-by-owner listing or an FSBO is finding potential buyers.

The easiest way to market your FSBO home is to put a sign in the yard. This may attract a number of interested buyers if your home is in a well-trafficked area.

Online marketing is even more effective. Posting images or videos of your property on a few for sale by owner real estate sites will help direct buyer’s eyes on your property.

Pros of Selling Your House by Listing It by Owner

• Maryland real estate agents earn a commission of 5-6% of the final sales price. You’ll avoid the seller’s agent commission when you list and sell your house yourself.

• You organize the listing, marketing, and sale details when you list as an FSBO. You wrangle all the details of the sale to your personal calendar.

• Your house has your undivided attention. Agents have multiple clients that require time to represent. You can spend all of your time devoted to selling your property.

There are, however, a number of disadvantages when listing as an FSBO.

Cons of Selling Your House by Listing It by Owner

• You’ll still have the majority of your prospective buyers requiring a mortgage to purchase your house. You’ll need to work with the buyers to facilitate the house appraisal, and you’ll still have the wait time that a lender requires to approve a loan.

• You won’t have anyone with the training and expertise to accept the fiduciary duty to represent your interests. Understanding the for sale by owner seller closing costs helps you evaluate buyer’s offers, but that won’t assist you in negotiating the final sales price with a buyer.

• You’re on your own to interpret real estate law and regulations. You might make mistakes that delay the sale, or even blow up a deal. Major errors might mean you end up in a courtroom being sued for damages.

Who Are Real Estate Agents?

Real estate agents in Maryland are professionals who take courses to prepare for licensing. They must also pass an exam on that material before the state issues their license.

Agents work as part of a brokerage that is supervised by a licensed real estate broker.

Professional agents help sellers price and market a listing. They also handle the negotiations with other agents representing buyers who make offers on your house.

Once a contract is accepted, agents wrangle all the legalities with documents and contracts.

Your agent is your legal fiduciary, and the agent is charged with putting your interests first. They are your legal representative, from the listing through the property closing.

Pros of Selling Your House As Is with a Real Estate Agent

• Realtors can use an exclusive online service that compiles comparable sales in your area — MLS. This information can help you determine a price for your property that brings you the highest dollar in the sale.

• Agents are your fiduciary. They place you above all others in the sale and will use their training and expertise to make sure you’re well represented.

Cons of Selling Your House As Is with a Real Estate Agent

• The costs of selling a house with a Realtor are the largest part of your Maryland closing costs.

• You will be one of a number of clients for your real estate agent. Fixers typically aren’t attractive to most buyers (except for investors), so your agent may place less emphasis on marketing and promoting your property compared with other turnkey listings.

• Real estate agents typically market to buyers who need mortgages to purchase your house. The wait time during the lending process can take weeks while your house sits still requiring mortgage payments, utility bills, and any homeowner association fees.

How to Choose an Ethical Real Estate Agent?

There is a large pool of licensed real estate agents in the Free State. It’s important to vet prospective agents to ensure they’re a good match with your specific needs.

Fixers require specialized marketing. Do your prospects have experience marketing fixers? How many have they sold in the past?

How will your prospects market your specific property? Invite them to the house for an interview to present their marketing plan designed for your home.

Ask prospective agents for a list of prior clients who recommend their services. Contact these people to make sure they’re legitimate references.

Inquire if the agent will be working with you, or if you’ll be working with office staff during the listing and transaction.

Timely assistance by your licensed professional means a quick resolution to any problems.

Agents using the title “Realtor” are members of the Maryland Association of Realtors (MAR), a state branch affiliated with the National Association of Realtors (NAR).

MAR has local boards that promote ethical standards in the real estate industry. Realtors take an oath to follow the rules of ethical practices passed by members of the association.

The association also disciplines members for failing to uphold the oath. Check with the local board to vet your agent prospects. Ask if the member has been fined or suspended in the past.