Many people prefer selling properties as-is to offload distressed or inherited properties quickly. People looking to relocate quickly, move to a different state or downsize their property after retirement also frequently sell their properties as-in to avoid having to deal with the hassles of repairs.
Buyers prefer the price offered in the raw deal, and sellers save a lot of time by cutting out repairs, marketing, upgrades, and open houses. Many buyers of as-is properties are flippers or investors who invest, upgrade, and sell at a profit in as little time as possible. Interestingly, sales without inspections became commonplace during 2021, with over 27% of the buyers waiving the inspection contingency to benefit from the increasingly competitive housing market.
If you’re not a realtor, you may have many questions regarding these types of sales. Home inspectors at Whole House Home Inspections are just a call away and can answer all your queries. As far as selling as-is is concerned, this guide will cover all the basics you must know about selling or buying this kind of property.
As-Is Real Estate: What it is and What it Isn’t
In a nutshell, many people invest in as-is properties because the seller might be offering the house in its current condition to avoid repairs, even if the home inspectors unveil significant issues. This doesn’t mean the buyer cannot include the inspection contingency in the contract. It simply means they won’t get anywhere with replacement or repair requests.
With as-in contracts, even if the buyer attempts to renegotiate based on the home inspection results, the seller isn’t obliged to lower the price. Since most professional realtors know what to look for during unofficial inspections before making an offer, it’s a great deal for experienced investors.
But not all homebuyers are qualified professionals, so putting an offer without a pre-buying home inspection can be risky. Therefore, the wise thing here would be to include an inspection contingency in the real estate contract.
It allows buyers to recoup their hard-earned money and walk away from the sale in case the inspector finds extensive issues with the property that are not worth the investment. These issues could include roof deterioration, faulty wiring, and a weakened foundation.
Sellers Must Disclose Known Issues Before As-Is Sales
Selling any property as-is doesn’t mean you’re allowed to sneak necessary replacements and repairs past potential buyers. Most states legally oblige sellers to disclose all known defects that pose a risk or impact the property’s value. Failure to do so may result in the buyer suing you or demanding reimbursement for after-sale repairs.
Whatever your reason may have been behind being willing to sell or buy an as-is real estate, one thing is certain: don’t underestimate the importance of home inspections. If you’re a buyer, consider pre-purchase home inspections and if you’re a seller, play it safe by investing in pre-listing home inspections.
Home inspectors at our company can provide valuable insights into the property while pinpointing all repairs that need immediate attention. We offer a range of services to make buyers and sellers both at ease.
From mold inspections to pre-drywall inspections, termite inspections, infrared inspections, air quality, radon testing, and many other services, we offer it all when you hire us for a complete property inspection. You can also talk to our representative about drone inspections if you need more thorough and visual results.