Thinking about selling your Morgan Hill home “as‑is”? You are not alone. Many sellers want a simpler path that avoids managing contractors, last‑minute fixes, and delays. The key is understanding what “as‑is” really means in California and how it plays out locally in Morgan Hill so you can protect yourself and still reach your goals.
In this guide, you will learn what “as‑is” covers under California law, which disclosures you still must provide, how local hazards factor into negotiations, and when to offer credits instead of repairs. You will also get practical checklists for both sellers and buyers. Let’s dive in.
What “as‑is” means in California
Selling “as‑is” is mainly a contract choice about the property’s physical condition. It signals you do not plan to make repairs as a condition of sale. Buyers are still free to inspect, ask questions, and negotiate price, terms, or credits.
What it covers
- The property is offered in its current condition at the time of contract.
- You are not promising to fix items identified by inspections.
- Buyers can still conduct inspections and request concessions or credits.
What it does not cover
- You cannot skip legally required disclosures like the Transfer Disclosure Statement or Natural Hazard Disclosure.
- You cannot hide known defects or misrepresent facts. Fraud or concealment can lead to serious liability.
- You cannot block a buyer from inspecting unless the buyer knowingly waives that right in the contract, which is risky.
Required disclosures in Morgan Hill
Even in an “as‑is” sale, California’s disclosure laws still apply. Your best path is to disclose fully and clearly so buyers can make informed decisions and you can avoid disputes.
Statewide forms you cannot skip
- Transfer Disclosure Statement (TDS). You must complete this to the best of your knowledge, including the condition of major systems and any known defects.
- Natural Hazard Disclosure (NHD). This identifies wildfire severity zones, earthquake‑related hazards, flood zones, and other mapped risks.
- Lead‑Based Paint Disclosure for homes built before 1978.
- Other statutory notices, such as those related to past methamphetamine cleanup or local assessments, when applicable.
- Wood‑Destroying Organism (WDO) report. Often requested by buyers or required by lenders in Santa Clara County.
Morgan Hill factors to disclose
- Wildfire risk. Many areas near the foothills fall within mapped fire hazard severity zones that appear on NHD reports.
- Seismic hazards. Santa Clara County has mapped earthquake faults and liquefaction or landslide zones that require disclosure.
- Flood zones. FEMA maps identify special flood hazard areas that affect insurance and risk.
- Special assessments. Some neighborhoods have Mello‑Roos or other special taxes that you must disclose if known.
- Permits and unpermitted work. Additions, remodels, or repairs without permits can affect value and safety and should be disclosed if known.
- Utilities and sewer. Confirm whether the property is on city sewer, has a septic system, or has any known issues. Disclose what you know.
Local market factors that matter
Morgan Hill is part of a higher‑price Silicon Valley market, which shapes how buyers and sellers approach “as‑is.” The mix of tech commuters, retirees, and local workers brings a broad range of preferences and risk tolerance.
Pricing and competition
- In tight markets, sellers can hold firmer “as‑is” terms because buyers compete for limited inventory.
- In softer markets, buyers often push for repairs or larger credits.
- Many “as‑is” listings price slightly below nearby comps to reflect perceived risk and to attract motivated buyers.
Lender and appraisal realities
- Some loans require certain repairs before funding, especially health or safety items.
- Appraisers may call out habitability issues that must be resolved pre‑closing.
- Peeling paint on older homes, roof condition, or unsafe electrical or plumbing issues can trigger lender requirements.
Smart inspection strategies
Inspections are your safety net in an “as‑is” deal. Whether you are selling or buying, the right inspections can prevent surprises and support fair negotiations.
For buyers
- Order a general home inspection to assess overall condition.
- Get a WDO inspection to evaluate termite or pest activity.
- Scope the sewer lateral in older neighborhoods where clay or aging lines are common.
- Ask for a roof inspection if the roof looks near the end of its life.
- Consider a structural engineer if cracking or settlement is visible.
- Inspect HVAC, chimney, and pool where applicable.
- Review permits and city records to confirm past work and code compliance.
- For homes near wildlands, review defensible space considerations and insurance availability.
For sellers
- Pre‑listing inspections can surface issues early so you can price accordingly.
- A pre‑listing WDO report is useful in Santa Clara County since lenders and buyers often ask for it.
- Gather and organize receipts, permits, warranties, and service records. Clear documentation builds buyer confidence.
- Decide in advance whether you will offer credits instead of repairs for common items like roof wear, aging HVAC, or drainage upgrades.
Credits vs. repairs
Offering a credit at closing instead of doing the work can keep your timeline on track. In other cases, a seller‑completed repair is the better choice. Aim for a mix that supports financing and buyer confidence without delaying closing.
When credits make sense
- You want a quick closing and prefer to avoid contractor coordination.
- The work is largely cosmetic or buyer‑specific in style.
- The buyer wants control over scope, design, or contractor selection.
When repairs are better
- A lender requires repairs for health or safety before funding.
- A specialized warranty or licensed contractor work will ease buyer concerns.
- The repair is small and simple to perform without delaying escrow.
Typical cost ranges to plan for
These are practical patterns, not legal rules:
- Minor items under a few thousand dollars are often handled by quick fixes or small credits.
- Mid‑range repairs like roof sections or HVAC replacement are commonly handled with credits, unless the market is very competitive.
- Major items related to safety or code compliance, such as significant foundation repair or unpermitted work, may need remediation before closing or can jeopardize financing and insurance.
Step‑by‑step checklists
Seller checklist
- Complete the Transfer Disclosure Statement and all required state disclosures accurately.
- Obtain an NHD report and disclose any wildfire, seismic, or flood hazards.
- Gather permit history, manuals, warranties, and service records for roof, HVAC, sewer, and appliances.
- Consider pre‑listing inspections to price confidently and reduce renegotiations.
- Decide on your credit strategy versus repairs before hitting the market.
- If a known health or safety issue exists, consult your agent and, if needed, legal counsel to plan the best path.
Buyer checklist
- Review all seller disclosures and reports thoroughly.
- Order a general inspection plus targeted inspections: WDO, sewer scope, roof, and structural as needed.
- Confirm lender property condition requirements early to avoid surprises.
- Get insurance quotes, especially for homes near mapped fire or flood zones.
- Use an inspection contingency with a clear timeline instead of fully waiving your inspection rights.
- If accepting credits, get the amount and terms in writing and confirm no further seller obligations post‑closing.
Common pitfalls to avoid
- Assuming “as‑is” removes your disclosure duties. It does not.
- Waiving inspections to win a bidding war without understanding the risks.
- Overlooking lender or appraisal requirements that could delay funding.
- Ignoring local hazard and permit history that buyers will likely uncover later.
- Pricing without factoring in visible condition issues, which can lead to painful renegotiations.
Next steps
“As‑is” can be a smart way to sell or buy in Morgan Hill when you combine full disclosure, clear pricing, and a practical plan for repairs or credits. The right prep keeps momentum, reduces risk, and gives both sides a fair outcome.
If you want a tailored “as‑is” plan for your Morgan Hill home, or you are evaluating an offer as a buyer, reach out. With seasoned guidance, you can move forward confidently and avoid costly surprises. Connect with Ted Mendoza to talk strategy for your situation.
FAQs
What does “as‑is” mean in California home sales?
- It means the seller is not agreeing to make repairs as a condition of sale, but disclosure laws still apply and buyers can inspect and negotiate.
Do I still have to provide disclosures in an “as‑is” sale?
- Yes. You must complete the Transfer Disclosure Statement, Natural Hazard Disclosure, and other required forms, and you cannot conceal known defects.
Can I get a loan on a Morgan Hill home sold “as‑is”?
- Often yes, but lenders may require certain health or safety repairs and appraisers may flag issues that must be addressed before funding.
Should I offer credits or do repairs as a seller?
- Credits work well for cosmetic items or when you want speed. Repairs are better when lenders require fixes or a specialized warranty will ease buyer concerns.
What inspections are most important for Morgan Hill properties?
- A general home inspection, WDO inspection, sewer lateral scope, and targeted roof or structural reviews based on age and condition are common priorities.
Are wildfire or earthquake risks part of “as‑is” disclosures?
- Yes. Wildfire, seismic, and flood hazards identified on NHD reports must be disclosed and can affect insurance, price, and buyer due diligence.
