What does Buying “As Is” Mean to Buyers
Buying Property “As Is”
You have fallen in love with a potential house and want to make an offer. Your agent tells you the property is being offered “as is”. What exactly does As Is mean?
In simple terms, as is means you are taking the property in it’s current condition and the seller is not going to fix or replace anything that may need repair or replacement.
How to Protect Yourself When Buying As Is
When buying an as is property, you typically have the right to inspect. The FAR/BAR As Is Contract allows for up to 15 calendar days for an Inspection Period that begins from the date the last person signed the contract. During the inspection period, it is wise to hire a professional inspector to check electrical and plumbing systems as well as roof, appliances, A/C, heating and to check for termites. At any time during the Inspection Period most as-is contracts allow buyers to cancel the contract for any reason whatsoever. However, a word of caution; Read the contract carefully to make sure you know what is allowed.
Many sellers or their agents restrict the inspection period to anywhere from 3 to 10 days. They do this because they do not want the property “off the market” for very long, and they want to know quickly if there is going to be a problem.
Will the Seller Help?
Most inspectors do find something wrong. It is simply a fact in the real estate business, expect it. If they find so much wrong that it scares you, it is probably best you look for another property. However, it doesn’t hurt to ask the seller for help even on an as-is deal. If the seller has already come down in price, then they probably will not give anything toward repairs. On the other hand, if you offered at or close to their asking price, you have a chance the seller will help. If the inspection reveals only a few minor items, and you really want the house, then the best course of action is to accept it and move forward with the purchase.