What does "as-is" mean when selling a home in Minnesota?
Selling a home as-is in Minnesota means the seller will not make repairs as a condition of the sale , but it does not eliminate the legal obligation to disclose known material defects. Under MN Statute 513.55, sellers must still complete the Seller's Property Disclosure Statement and reveal all material facts they are aware of that could adversely affect a buyer's use and enjoyment of the property. If the home was built before 1978, federal law requires a lead-based paint disclosure that cannot be waived under any circumstance. Sellers remain legally liable for known but undisclosed defects for two years after closing.
By Darin Bjerknes | May 27, 2026
Every spring, I work with sellers who've decided they don't want to deal with repairs. The roof has some age on it, the mechanicals are original 1980s hardware, and there's a bathroom that hasn't been updated since the 1990s. Their plan is simple: list it as-is, let buyers sort it out.
That plan isn't wrong, as-is sales are completely valid in the east metro, and I've helped sellers move homes in exactly that condition in Cottage Grove, Oakdale, and Maplewood. But almost every one of those sellers comes to me with the same misunderstanding: they think "as-is" means they don't have to disclose what's wrong with the house.
It doesn't. And getting this backwards can expose you to legal liability that survives closing by two years.
Here's what the label actually means , and what it won't protect you from.
What "As-Is" Actually Means in a Minnesota Purchase Agreement
In a Minnesota real estate transaction, "as-is" is a contractual signal to buyers: the seller will not make repairs, provide repair credits, or renegotiate the price based on inspection findings. That's it.
It does not mean the seller can skip disclosures. It does not mean the buyer forfeits inspection rights. It does not mean the seller is off the hook for things they knew about and didn't mention.
When I write an as-is listing for a seller in Woodbury or Lake Elmo, the language gets added to the MNAR purchase agreement to communicate that the property is being sold in its present condition and the seller won't be entertaining repair requests after the home inspection. Buyers who accept that know what they're agreeing to, they're accepting the condition as described, not accepting hidden surprises.
The practical effect of "as-is": buyers typically waive their inspection contingency or limit any post-inspection requests to safety-critical items only. Sellers accept that the price reflects the condition. Both parties move forward without the back-and-forth negotiation that follows a traditional home inspection.
The Disclosure You Still Have to Make (MN Statute 513.55)
Under Minnesota Statute 513.55, before a purchase agreement is signed, every seller of residential real property must make a written disclosure to the prospective buyer. That disclosure must include all material facts the seller is aware of that could adversely and significantly affect an ordinary buyer's use and enjoyment of the property , or any intended use the seller knows about.
"Material facts" in the context of a Minnesota home sale include, but aren't limited to:
- Past or present water intrusion, basement leaks, roof leaks, drainage issues
- Foundation or structural conditions the seller knows about
- Failed or aging mechanical systems, including HVAC, plumbing, and electrical
- Radon levels, if the home has been previously tested
- History of meth production on the property (MN Statute 152.0275 requires a separate notice)
- Private septic systems or private wells and any compliance history
- Underground storage tanks on or near the property
- Pending assessments, active legal disputes, or easements affecting the property
The disclosure must be made in good faith, based on the seller's best knowledge at the time. If relevant facts change between the disclosure and closing , the furnace dies, a pipe bursts , MN Statute 513.58 requires the seller to notify the buyer in writing as soon as reasonably possible, and no later than closing.
Selling as-is does not waive this. You are obligated to tell the buyer what you know. You are just not obligated to fix it.
The Written Waiver Under MN Statute 513.60 , What It Does and Doesn't Eliminate
Minnesota does have a waiver provision. Under MN Statute 513.60, a seller and buyer can mutually agree in writing to waive the written disclosure requirements. This is the technical path to a sale without the full Seller's Property Disclosure Statement , but it has firm limits.
First, the waiver must be a written agreement signed by both parties. It cannot be oral. It cannot be implied. It must be explicit, and both parties must consent.
Second , and this is what surprises most sellers , the waiver only covers Minnesota's state disclosure requirement. It does not waive any disclosure obligation created by any other law.
What That Means for Pre-1978 Homes
If your home was built before 1978, federal law requires a lead-based paint disclosure. This requirement comes from the Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X), enforced by the EPA. As the seller, you must:
- Disclose any known information about lead-based paint or lead hazards in the home
- Provide buyers with the EPA pamphlet "Protect Your Family From Lead in Your Home"
- Give buyers a 10-day opportunity to conduct a lead inspection or risk assessment (unless the buyer voluntarily waives this in writing)
This requirement cannot be eliminated by a mutual written waiver under MN Statute 513.60. It's federal law, and it applies regardless of what your purchase agreement says.
In the east metro, this is more relevant than most sellers expect. A substantial portion of the housing stock in Maplewood, Oakdale, and older Woodbury and Cottage Grove neighborhoods was built in the 1960s and 1970s , well within the pre-1978 range.
Two Years of Seller Liability After Closing
Under Minnesota law, a buyer can bring a civil action against the seller within two years after closing if the seller failed to disclose known material defects. This applies even if the property was sold as-is, even if the buyer signed an inspection waiver, and even if the buyer acknowledged receipt of a disclosure form.
The hinge is knowledge. If you didn't know the foundation had a crack, you can't be held liable for not disclosing it. But if you knew , if you had a contractor look at it three years ago, got a repair quote, and decided to live with it , and you didn't note it on the disclosure form, you are exposed.
This is the clearest reason I advise sellers to over-disclose rather than under-disclose. Buyers who know what they're getting into price the condition accordingly. Buyers who feel deceived after closing call attorneys. Selling as-is protects you from repair negotiations. It does not protect you from your own knowledge.
Who Actually Buys As-Is Homes in the East Metro
Understanding your buyer pool is critical to pricing an as-is home correctly. In the Woodbury, Cottage Grove, and east metro market, three buyer types are most likely:
Cash buyers and investors. These are the most common buyers for as-is homes with significant deferred maintenance. Investors evaluate repair costs directly into their offer and are comfortable with properties that need substantial work. They move quickly and don't require appraisals or minimum property standard reviews from a lender. The tradeoff: their offers reflect the renovation cost they're absorbing. Cash buyers in the Twin Cities typically offer 70–85% of after-repair value, minus estimated costs , which can feel like a steep discount but represents a real cost they're taking on.
Conventional financed buyers. Buyers using conventional loans can purchase as-is properties when the home appraises at or above the purchase price and doesn't have conditions that trigger lender concerns. Cosmetic issues , dated kitchens, old carpet, original fixtures , are generally fine. Structural issues, missing handrails, or failing mechanical systems can become problems if the appraiser flags them.
FHA and VA buyers. These loan programs impose minimum property standards beyond what conventional lenders require. FHA appraisers flag peeling paint on pre-1978 homes (which triggers a lead-hazard protocol), roof systems with less than two years of estimated remaining life, and health or safety defects. VA appraisers apply similar standards. As-is sellers who exclude FHA and VA buyers from consideration are limiting their pool , but sellers whose homes genuinely can't meet those standards are making an informed decision, not hiding a problem.
How to Price an As-Is Home in Woodbury or the East Metro
As-is pricing is a function of condition depth, buyer pool width, and competing inventory. There's no universal discount percentage.
A home with deferred cosmetic work , mismatched finishes, old appliances, an unmaintained yard , might list within 5–8% of fully updated comparable sales and attract conventional financed buyers without issue. A home with end-of-life mechanical systems, evidence of past water intrusion, or deferred structural work typically needs a 10–20% discount from updated comps to attract financed buyers, or it's priced to attract investors only.
The key metric I use: after-repair value (ARV). What would this home sell for fully updated? Subtract the cost of those updates, subtract the buyer's expected margin (typically 10–15% of ARV for investors), and you have the investor ceiling. If you want financed buyers, your price needs to clear that floor while reflecting the condition honestly.
In the spring 2026 east metro market , with inventory up and average days on market running around 55 days , as-is sellers have less leverage than they did in 2021 and 2022. Buyers are more deliberate. Getting the price right from the start matters more than it used to.
How to Sell As-Is in Minnesota: Step by Step
- Complete the Seller's Property Disclosure Statement honestly. Disclose everything you know. This is your legal protection, not a liability.
- Check the build year. If your home was built before 1978, prepare the federal lead-based paint disclosure form and the EPA pamphlet before listing. This is non-negotiable.
- Determine your buyer pool. Decide whether you will accept FHA or VA offers. If the home has conditions that would likely fail minimum property standards, communicate that clearly upfront rather than letting deals fall apart after inspection.
- Price to the condition using ARV math. Have your agent pull comps for both fully updated and distressed-condition sales in your immediate area. The spread between those two data sets is your pricing range.
- Add explicit as-is language to the purchase agreement. Buyers should know before they tour that repair requests will not be entertained. Setting that expectation upfront reduces friction after inspection and keeps the transaction from falling apart at the wrong moment.
Frequently Asked Questions
Can I sell my home as-is in Minnesota without filling out the disclosure form?
Only if both you and the buyer sign a mutual written waiver under MN Statute 513.60. Even with that waiver, the federal lead-based paint disclosure still applies to any home built before 1978. And a waiver does not eliminate your liability for known defects you intentionally concealed , that's a separate legal exposure that survives closing.
Does selling as-is mean the buyer can't do a home inspection?
No. Buyers retain the right to arrange a home inspection in an as-is sale. The "as-is" language means the seller will not negotiate or make repairs based on what the inspection finds , not that the buyer forfeits the right to inspect. Buyers can waive their inspection contingency separately if they choose, but that's the buyer's decision, not something the as-is label forces.
What happens if a buyer discovers a defect after closing that I didn't disclose?
If the buyer can show you knew about the defect and did not disclose it, they may file a civil lawsuit within two years of closing under Minnesota law. Potential recovery includes repair damages, other out-of-pocket costs, and in some cases attorney's fees. The practical advice: disclose it. A known disclosed defect gets priced into the sale. An undisclosed known defect becomes a lawsuit.
Can FHA or VA buyers purchase my as-is home?
It depends on the condition. FHA and VA appraisers evaluate minimum property standards beyond conventional underwriting requirements. Common issues include peeling paint on pre-1978 homes, roof systems with less than two years of remaining life, active leaks, exposed wiring, and missing handrails. If your home has these conditions, FHA and VA buyers will likely face appraisal conditions requiring repairs before closing , which is difficult to reconcile with an as-is listing.
How much less will I receive by selling as-is in Minnesota?
There is no fixed percentage. A home with light deferred maintenance might sell within 3–8% of fully updated comparable sales. A home with major mechanical issues, water damage history, or structural concerns may need to be priced 15–25% below market to attract the buyer pool that will purchase it in as-is condition. The right number requires a detailed condition assessment and honest analysis of your likely buyer profile.
Thinking about selling your home as-is in Woodbury, Cottage Grove, or the east metro? The disclosure requirements alone are worth a conversation before you list. Reach out at [email protected] or book a call at calendly.com/darintheminnesotan.
Darin Bjerknes | Minnesōtan, Brokered by REAL | [email protected]
