What Does ‘As-Is’ Mean?

Most homes on the market are advertised as being sold ‘As-Is’, so what does this mean exactly?

As the term suggests, when a property is sold ‘as-is’ it means that the seller is not willing to perform any repairs on the property prior to sale. This does not mean that the property needs any repairs at all, it simply means that if there is you are accepting the home in the condition it is now. This has become an increasing trend over the last ten years, even before the housing crisis hit to eliminate a lot of back and forth and make it more straightforward to buy and sell property.

Just because a property is being sold ‘as-is’ shouldn’t make it any less desirable to you in any way. In fact even if a home isn’t advertised as-is you may want to make an as-is offer in order to make you appear to be an easier buyer to deal with. This can make all the difference in the current market and help you not only to get the home you have been dreaming of but also to get it at the best price.

Even when you are buying a property as-is you still have the right to have an inspection done. You still need to be aware of exactly what shape the home is in and know exactly what repairs will be needed to live in or resell the property as well as how much they will cost. As the number of properties being sold continues to increase and as there are fewer home inspectors now you will want to make sure that you give yourself ample time in your contract to arrange for a professional inspection. Try to get at least 10 days.

Even when you are buying a home as is you still can include a clause in your purchase offer that gives you an out if the repairs needed are excessive. You can stipulate in your offer a certain percentage of the purchase price or a certain dollar amount of repairs that you will accept. 2% is quite common and normally acceptable. If more than that is discovered to be needed once your inspection is done you will have the right to back out of the contract or renegotiate the price and terms of the deal.

So do not be afraid of checking out as is properties, but do make sure that you have all of your bases covered and protect your rights to get the best deal possible.