Understanding Purchasing Property “As Is” Means in Real Estate

What Does It Mean When a House Is Sold “As Is”?

You see a house being sold “as is,” and you feel as though you should avoid looking at this house, much less consider it for purchase.  Keep in mind, all “as -is” means is that the seller isn’t going to fix anything before selling it. The house comes just the way it is right now, with all its good parts and any problems it might have.

Why Do Sellers Sell “As Is”?

1. They Don’t Want to Spend Money on Repairs
   Maybe the seller can’t afford to fix things, or they just don’t want to deal with it. Many times, the seller feels as though they have reduced the price to adjust for the work or updates that need to be done.
2. It’s Part of the Sale Terms
   Sometimes the seller wants to make a quick sale or avoid negotiating about repairs after a home inspection.
3. It’s an Older or Fixer-Upper Home
   Some “as is” homes need a lot of work, and the seller knows the buyer will likely remodel or repair it anyway.

What Should Buyers Know?

1. You Still Get to Inspect the House
   Even though it’s sold “as is,” you can and absolutely should pay to have a home inspection. This will show you what repairs might be needed and help you decide if the house is worth buying. If the inspection reveals any issues, you might also want to have additional experts give an opinion on the extent of the repairs.
2. The Seller Isn’t Promising Anything
   The seller won’t fix anything found during the inspection, so you need to be okay with handling repairs yourself or paying to hire someone to do them.
3. It’s Not Always a Bad Deal
   Sometimes “as is” homes are priced lower because of their condition. If you’re willing to make repairs, it could be a good opportunity to buy a house that others would not even consider purchasing.

Be Careful!

Buying an “as is” house means you’re taking on all the risks of problems the house might have, like a leaky roof or an old heating system. Make sure you:

• Hire a professional inspector that uses accredited inspectors
• Budget for repairs or updates to address issues that may make it hard to inhabit the house 
• Know what you’re getting into before you buy

An “as is” home can be a good deal for the right buyer, but it’s important to be informed and prepared! There is risk involved in any purchase, and an as-is property is essentially like the homeowner is acknowledging the risk instead of implying “trust me, this house is perfect!” Read about Due Diligence, which is when you’d do your inspection and fact finding about the house.

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