If you’re working with a real estate agent or simply perusing online listings, you may come across the term “as is.” In real estate, “as is” means a property will be sold in its current condition (regardless of what the condition may be), and the seller won’t be making any repairs or updates before closing.
“As is” homes are typically listed by sellers looking for a quick, no-fuss sale — possibly due to a foreclosure, short sale, death or even just wanting to sell and move quickly. Let’s discuss what buying a house “as is” means and whether it’s right for you.
An “as is home” means the seller won’t be making repairs before closing. Unlike traditional transactions where the buyer can request repairs, what you see is what you get. However, the buyer can still submit a lower bid and negotiate the price.
If you’re buying a home “as is,” you may come across the following issues:
Despite the nature of the sale, it’s still recommended to get a home inspection so you can understand what issues you might be dealing with before closing.
While it may seem like “as is” homes are always in poor condition, this is not always the case. An “as is” clause is simply meant to help communicate that the seller won’t be making or financing repairs and remind the buyer that they are making this purchase based on their own judgment, as opposed to the statement of the seller.
Do note that the “as is” clause doesn’t absolve the seller from providing a comprehensive seller’s disclosure. They’re still typically obligated to disclose any known problems that might affect the home’s value and a buyer’s safety. However, the regulations surrounding an “as is” seller’s disclosure may vary depending on where you purchase.
If you buy an “as is” home and come across issues that weren’t disclosed, you may forfeit the right to request repairs or credits from the seller. If obtaining financing from a lender, the lender may still request you make repairs if any issues come up on the appraisal report.
Buying a home “as is” isn’t always for everyone. Just like any major purchase, there are advantages and disadvantages worth exploring:
If you’re interested in buying a home “as is” and are curious about how to move forward, here are a few steps you may consider taking on your journey:
Buying a home “as is” means buying a home in its current state. Essentially, it’s a “take it or leave it” scenario. If you’re excited about bargaining for a lower price and potentially renovating a home, then buying a house “as is” may be something to consider. On the other hand, if you’re concerned about potentially expensive repairs and long renovation projects, then it may be best to find another option that better suits your homebuying needs.
