Are you buying a home As-Is? Todays’ home buying market is tough, and you need to win a bidding war! Were you thinking about skipping a home inspection? Is that because the seller is selling the home you want to buy “As-Is”? Do you believe that your bid may be accepted if you choose to waive the home inspection? We understand that there are significant risks involved. However, do you know what the term “As-Is. “really means in a real estate transaction?
The Whole Home Being Sold As "As-Is"
When a seller lists and sells the entire home “As-Is,” they do not have to do any repairs. Nor do they need to offer any credits for possible issues the home or property may have. When a buyer submits a bid with the intent of buying a home “As-Is,” they waive their right to ask the seller to make any repairs that may be needed.
Some examples of significant defects that the seller would not be responsible for include:
- Structural problems
- Leaking or faulty roof
- Damaged Drywall
- Termite Infestation or damage
- Clogged septic system.
- Broken HVAC Unit
- Mold or Radon Issues
- Asbestos or other toxic materials
Yes, the housing market is red-hot right now, sparking a movement amongst homebuyers to skip their home inspection to secure their dream home. However, in some circumstances, the seller will allow a buyer to conduct a home inspection for informational purposes and the opportunity to unilaterally dismiss the contract for a specific time after the inspection. While this practice very rarely happens, it is acceptable if both parties are in agreement.
Specific Pieces of the Property Are Being Sold "As-Is"
Occasionally you may deal with a seller who lists certain aspects of a home that are sold as “As-Is.”
Typical examples include:
- Fireplaces, chimneys, and flues
- Swimming pools
- Detached garages and sheds
In cases such as this, buying a home “As-Is” means that specific components of the property may or may not be working correctly, and regardless of its condition, the seller will not make any repairs under any circumstances as part of the contractual agreement.
The Hidden Cost of Skipping a Home Inspection
As with any significant sales transaction, purchasing a home requires a considerable amount of research to protect your best interest make sure you make the right decision. Without a home inspection, it is virtually impossible to understand what type of condition the home is in. Here are a few things to consider when you waive your right to a home inspection.
- Without an inspection, you may be overlooking some crucial safety issues that should be addressed before closing.
- Many defects that might give a homebuyer pause are hard to locate, and it takes an experienced home inspector to identify them.
- Homes do not come with a repair manual. When you get an inspection, an inspector can inform you about any future maintenance needs to help make sure that you are well informed.
Best Practices for Buyers
As the buyer, you must realize the significance of the term “As-Is.” It means that you are giving up your right to an inspection, and you must do your due diligence before agreeing to the terms of the “As-Is” contract. Things to consider when conducting your research:
- Consult an attorney.
- Research the deed and land records for possible red flags.
- Inspect the home before making an offer on the property.
- Include a provision in your contract that would allow an inspection for informational purposes and the right to cancel an agreement based on the outcome of a home inspection.
- Have a licensed professional inspect the home’s major structural systems.
You Bought a Home Without an Inspection Now What?
Many first-time buyers may be interested to learn that you can still get the home inspection you need for informational purposes as part of an “As-Is” deal with the seller’s blessing. While you can’t negotiate any repairs with the seller, an informational inspection can provide you with a sense of what safety concerns to be aware of and how much work needs to be done on the home to help prepare you for future expenses. In addition, if you find the house needs more repairs than you expected, you will have the option of withdrawing or canceling your bid.
To schedule an informational inspection, contact 4U Inspections Services now at (443) 539-8710 or use our scheduling form to book your appointment.