The word “as-is” in real estate means that a buyer is purchasing a property in its current state and condition. The seller is disclosing they will not negotiate any repairs, issues or future credits. If you are a buyer, do not make the mistake to think since the property is sold as-is that you cannot perform a personal home inspection to determine how serious any issues maybe.
How may you encounter the term “as-is” as a buyer?
As you search for your dream home online, I suggest Homesnap. You may see properties advertised “as is” in the description. To some people, this seems like a warning and they continue scrolling. For others, this is an opportunity. When I see a home listed selling “as-is” I always tell my clients to allow me to get more information. Then we can see what “as-is” means.
How do we help our clients?
To help my client through the “as-is” process, first, we want to get up-front information or facts on the property. I call the seller’s agent and also search the MLS to investigate why the seller is transferring “as-is”. We perform background searches on county deeds and treasurer website and pass the information to you, the buyer. This allow you to make a decision based on the findings.
We also ask for the seller’s property disclosures and whether the seller has completed the municipality pre-sale compliance inspection report. The goal is to understand what “as-is” mean and convey the information to my buyer client.
Why is this important?
I believe when you have all fact you have clarity and can then make solid decisions such as whether to move forward with the deal or pass it up. Once a buyer is under contract, I always recommend the buyer to perform a personal home inspection. This inspection is an investment to the buyer at around $350 to $500 on a single-family home.
An inspector may be able to reveal other unknown issues or items not disclosed by the seller. Defects discovered can help the buyer with price negotiations regardless of the intention to sell “as-is”. I have been in “as-is” transactions where there were few or minor issues to other transactions where there was too much work for the buyer to handle.
To learn more how we can help you contact us at 708.340.6803.
