For Buyers: As-is Property 101

Most people interested in buying a home have come across, at one time or another, property advertised for sale “as-is.” Here are a few guidelines to help you decide whether considering such a home is right for you.
 

What it means
An as-is description isn’t necessarily a red flag that there’s something wrong with the house. It simply means that the sellers will not be doing any repairs. The reasons could be financial – the sellers simply can’t afford it. Or maybe it’s personal – the sellers already left the area or their health and/or age won’t permit them to oversee the work. Many banks and lenders selling foreclosed properties also will offer them on an as-is basis.
In some highly competitive markets, many homes are sold as-is because buyers are motivated enough to take the risk.

Disclosures
Speak with your real estate agent about disclosure agreements. For most ‘as-is’ transactions, owners, typically fill out a disclosure form – a list of all known problems associated with their property. If during the inspection you come across previously undisclosed conditions that require significant, cost-prohibitive investment, you most likely can still walk away. 

Inspection
Inspections are always a crucial part of the process of buying a home, and in the case of an as-is home, a careful, thorough inspection is even more important. Your agent may be able to refer a reliable inspector experienced in looking at these kinds of properties. Be sure to get estimates on the various necessary repairs so you’re not blindsided by the costs after you finalize your purchase.

A property advertised for sale or to let, “as-is”, could also offer the buyer a further advantage to negotiate a more agreeable sale price if the buyer is working with a knowledgeable real estate agent who knows how to turn the reason(s) for such caveat to your advantage.

Looking for a new home? Find a local RE/MAX agent who can be your guide through the entire home-buying process.