If my furnace is ‘red tagged’, can I sell my home ‘AS IS’ without fixing it?

Furnace-red tagIf your furnace is 'red tagged' that means operating it is a health and safety hazard and it shouldn't be used until it is either repaired or replaced.

If your sale is a cash transaction it only must satisfy the buyer… so yes, you could sell AS IS without fixing the furnace as long as your buyer is ok with it.

However, if your buyer is financing the purchase you will most likely need to repair or replace the furnace before the mortgage will be underwriting approved… a safe, permanent heat source is required to make it a habitable living space.

Most often a red tag results in a new furnace because repairs often cost as much or more than a new furnace… but repairs could also be acceptable. Depending on the reason for the red tag, repairs could be just a short-term fix.

Buyers should talk to an HVAC professional if it is repaired so you understand the situation, and be prepared for possible replacement in the not-too-distant future.

Sharlene Hensrud, RE/MAX Results Twin Cities Realtor

The HomesMSP Team - SharleneJohnAngela Your Minneapolis Neighborhood Guides


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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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