Buying and Selling As Is

Buying or selling a home ‘as is’ on the real estate market today is fairly common. As Americans move more often and the practice of renovating run-down homes for profit grows more widespread, many sellers aren’t finding it necessary to repair the defects in their property before putting it on the market. They’re much more liable today to find a buyer who’s willing to purchase the home, defects and all.
How does ‘as is’ selling work? The process is simple. The contract simply states that the seller is not responsible for making any repairs to the home before the buyer takes possession. The seller is still required to disclose any defects of which they are aware. However, if other defects appear after the sale is complete, the seller is not liable for those problems, provided they didn’t hide knowledge of the condition during the sale.
With the ‘as is’ buying and selling process, sellers accept the fact that they’re getting less money for their home. Buyers are entitled to a lower price to make up for the cost of repairs. Usually sellers who put their homes on the market as is are not as interested in high market value as they are in a quick sale; or they simply do not have the resources to make the repairs before sale.
In order to sell a home as is, however, a home inspection is still required. Both parties must be aware of the damages, so that the buyer knows what he is getting into and the seller knows approximately how much he is going to lose in market value.
Purchasing a home with knowledge of its condition allows a buyer to examine his budget and decide if purchase price plus repair cost is worth it. Usually, it is- the buyer is essentially paying less because he’s willing to go through the hassle of repairs, and not necessarily because the repairs will cost a certain amount. Also, often the defects in a home are perfectly livable; for example, if a seller refuses to put a new coat of paint on the rooms, then the house qualifies for an as is sale. The industrious buyer who doesn’t mind painting a few rooms can get his purchase price lowered for the sake of a very easy repair.
In a home being sold as is, both sides would do well to hire home inspectors, and check the house over thoroughly. Provided the seller doesn’t mind losing a little sticker price, and the buyer doesn’t mind a few costs down the road, it can be an excellent deal for both sides. One gets out with having to do any work and makes a quick sale; the other gets a bargain home that needs a little TLC.