Selling Your Home As-Is: What Does It Really Mean?

In real estate, there is a term called “As Is”, which frequently strikes fear in the heart of buyers. But what exactly does it mean, not only for the buyer, but for the seller as well? Let’s take a look at the option to sell your home, basically, in it’s current condition, and what that means.

When a seller decides to list their homes As Is, it typically means selling it without doing any repairs or updates, even if some repairs are warranted. The seller does not have to guarantee that everything is in good repair or working order. Sometimes this is done because the seller is a family member who may not even have lived in the home or know of underlying conditions. Sometimes, the seller simply does not have the time or the funds to correct any deficiencies.

What this means for buyers is that they are taking on the responsibility of repairs, and the cost of those repairs after the purchase. If they find even more issues after Closing on the property, they are obligated to correct them.

But wait – this doesn’t mean that the seller is off the hook entirely. They still must follow federal and state disclosure standard that mandate the sellers disclose specific information about the property, including the use of lead paint and other potential risks of which they are aware.

An As Is property isn’t always a run-down home with holes in the roof and broken sidewalks. Sellers may choose this classification because of needing to get out of debt, time and other financial constraints, the inability to complete repairs, needing a quick sale or a variety of other reasons.

It can also be a very strategic move in the current real estate market. As Is properties attract investors or buyers who don’t mind putting some “sweat equity” into improving a home, making it a win for both sides.

For buyers, homework is essential, including conducting professional inspections and assessments to uncover any hidden issues that could impact the property’s value or livability. While the prospect of buying this type of home can be intimidating, it can also provide a great payoff for those willing to put in the effort.

The key point is to be informed of all the ramifications of selling or buying an As Is home. For more information or to receive a copy of my Resource List, contact me at Karen Daugerdas, Coldwell Banker Real Estate, karen.daugerdas@cbrealty.com, 847.494.1102.