Selling a home “as is” seems like a great opportunity for sellers. There is no need for them to rush around making repairs. However, what does this term mean when it comes to property purchasing? Why is it important for a buyer? Many individuals see the phrase “as is” appearing in real estate listings as a caution.
Learn what our residential home inspectors have to say about it in this blog.
What Does “As Is” Mean?
When sellers want to save money and avoid pre-listing home inspections, they sell their homes “as is.” This means the seller doesn’t offer a Seller’s Disclosure and isn’t going to perform any repairs.
Any problem you find in the house is something you’ll have to fix with your own money.
The minimum disclosure requirements set forth by the federal and state governments still apply to “as is” sellers, and they must inform you of issues like lead paint. Also, it does not always indicate an irreparably damaged property. Even with little or no faults, a seller may choose to offer a house as is for various reasons.
At times, sellers don’t have enough money to do the necessary renovations. They might be in debt or don’t have time to keep up with contractors to complete a large job. There are many other reasons than repairs for which a seller can market a house in “as is” condition. Under certain circumstances, it could be more attractive to buy a house “as is”.
Property Inspections are Important For “As-Is” Homes
If you intend to purchase an “as is” property, you need to get a residential home inspection. A home inspector will inform you of all the significant problems. If you decide to purchase the house, this provides you with a clear indication of what needs fixing and how much it will cost.
Don’t get this confused with appraisals. Inspectors are present to identify significant problems. Appraisers are there to determine the estate’s worth. Your mortgage lender will likely require an appraisal, and a house inspection is important to the potential buyer. If a seller declines to permit a property inspection for the as-is residence, one of two situations is likely the case:
- The seller is concealing severe issues with the property from you even though they are aware of them.
- The seller suspects there may be a problem with the house, but they don’t want to disclose anything that will reduce its value.
If a seller refuses to get an inspection, you should ask them why or try to back out of the deal as soon as possible. If you have your heart set on a particular house, then you can get an inspection done on your own.
That’s where Whole House Home Inspection comes in. We’re a home inspection company in Atlanta that helps sellers and buyers get pre-listing and pre-purchase home inspections. Our business is unrivaled in its commitment to understanding and meeting the needs of its clients. We offer plenty of services, from radon testing to pre-drywall inspections.
Contact us to learn more.
