What is an “As Is” property?

When you begin looking for homes, you might notice that you come across a property listed "as-is" or have to make an "as-is" offer to get a home they love under contract. So what does this mean exactly?!  An "as-is" offer means you can do an inspection, but you the seller isn’t planning on making any repairs based on the inspection results - basically what you see is what you get. Don't worry though, before getting freaked out, there are some safeguards to protect you when purchasing an as-is property.

As a buyer you still have the right to do an inspection during the home inspection period and you can back out if you find something really concerning during the inspection. If you back out due to an inspection item and it's still during the home inspection contingency period then you should not lose your earnest money; instead it should be refunded to you. With that being said, you will be out the cost of the inspection since the inspector is a third party you hire to do his job regardless of if you want to move forward.  Very occasionally if there's something really bad in the inspection like asbestos, mold, etc we can try asking the seller to remedy it. But if you're thinking of walking away anyway, it can be worth a shot to ask especially if it's a disclosure issue that they will now have to disclose to other buyers going forward.  (Sellers still need to disclose any and every issue with the house, regardless of the as-is sale.)

As-Is properties can sometimes be really good deals, but they can also be problematic if you find tens of thousands of dollars of repairs that are needed and can't ask the seller to pitch in to cover the cost of those repairs (although in that case you can walk away).  It is important to understand how how comfortable you are with an As Is offer before agreeing to it.

Please reach out if we you have any questions about As Is properties.