What you should know about buying an ‘as is’ home

Though commonly seen in real estate listings, the term “as is” and its implications are poorly understood. Here’s what you should know.

What it means
The term “as is” means that the owner is selling the property without a guarantee that everything in the house is working as it should. This doesn’t necessarily mean it’s in disrepair, nor does it mean that you’ll get a bargain. All it means is that the owner, for one reason or another, isn’t interested in making repairs or upgrades.

The need to make a quick sale is the most common reason for selling a home as-is. It’s also typical of banks selling foreclosed homes as well as people who inherited the house and aren’t familiar enough with it to take a chance on making repairs.

What you should do
If you’re interested in purchasing a home is sold as-is, the first thing to do is to get a home inspection. This will allow you to know exactly what, if anything, is wrong with the property and decide if you still want to purchase it.

Hiring a general contractor and structural engineer for a more thorough assessment may also be a good idea, as they can provide an estimate of the costs involved in making any necessary repairs.

Finally, know that you can and should make your offer conditional on a home inspection, although some sellers may refuse these types of bids.