The U.S. residential real estate frenzy may be starting to calm down, but it remains a hot seller’s market out there — and in such climates, house-hunters often see properties listed for sale “as-is.” “Selling a home as-is means selling a home to someone without any obligation to provide repairs or credits for problems with the property,” says Adriano Tori, founder and CEO of RexMont Real Estate in Seattle.
While that might suggest the advantage is all on the seller’s side, an as-is home can be a boon to home-buyers, too — though of course the caveats can be considerable. Here are all the pros and cons to consider.
What does selling a home as-is mean?
Normally, there’s considerable negotiation in real estate offers and transactions — back-and-forth bargaining over the offer vis-à-vis the home’s features and condition. With as-is homes, it’s more of a take-it-or-leave-it situation. When you buy a house as-is, you’re getting a property that typically needs repairs and updates, with the asking price reflecting the current condition. Don’t ask for changes or fixes: What you see is what you get.
While it’s probably not going to be in tip-top shape, the actual condition of the home can vary. According to Tori, an as-is home could have minor issues, like chipping paint or an appliance that needs replacing, or more serious issues, like water leaks, roof damage or mold.
An “as-is” home isn’t necessarily the same as a “fixer-upper,” though obviously there’s overlap between the two. “Fixer-uppers are properties that need significant repairs and renovations, while as-is homes may just need some cosmetic updates or minor repairs,” says Realtor Rinal Patel, co-founder of We Buy Philly Home in Philadelphia.
Why do sellers offer homes as-is?
Sellers offer homes as-is for a variety of reasons. “Often, you will find most homes listed by agents as-is to be those that have been through a foreclosure or where the previous owner has died and it has been inherited,” says Catherine Mack, co-owner of House Buyer Network, a national homes-for-cash purchaser.
The seller could also have other reasons for listing the home as-is, such as needing to unload it quickly, avoiding investing money in it or just not wanting to deal with defects.
Why buy a house as-is?
No matter the seller’s motives, as-is home sales can offer several advantages for the buyer.
Cheaper sale price
As-is homes are priced to sell. And since the current owner is not willing to make repairs or negotiate, …….