What as-is does and does not mean
The term "as-is" causes more confusion and anxiety among buyers than almost any other real estate term. Let me clear it up with a straightforward explanation.
What as-is means
The seller is selling the home in its current condition and will not make any repairs or improvements before closing. The seller is saying "what you see is what you get." This is common in several situations: estate sales, homes being sold by investors, homes needing significant repairs, or sellers who simply do not want to deal with repair requests. The purchase price is often adjusted to reflect the condition of the home.
What as-is does NOT mean
As-is does not mean you waive your inspection rights. It does not mean you cannot negotiate. It does not mean you have to accept any and all defects. It does not mean the seller can hide known defects. Florida law requires sellers to disclose known material defects through a property disclosure form. If the seller knows about a problem and does not disclose it, that is fraud. An as-is sale does not protect a seller from fraudulent nondisclosure.
Your rights as a buyer in an as-is transaction
- You still have an inspection contingency — unless you specifically waive it, your contract still includes a standard inspection period. You can hire any inspectors you want during that time
- You can still request repairs or credits — while the seller can say no, you can still ask. Many sellers will agree to a credit for major issues even in an as-is sale, rather than lose the deal
- You can still walk away — if the inspection reveals problems you are not comfortable with, you can cancel during the inspection period and get your earnest money back
- You still receive seller disclosures — Florida law requires sellers to disclose known material defects. Review these carefully for hidden problems
- You can negotiate the price — the fact that it is as-is gives you leverage to offer below asking, factoring in the cost of needed repairs
When you might see an as-is sale
Estate sales and probate
When someone passes away and their heirs sell the home, it is almost always as-is. The heirs may not know the condition of the home or may not have the funds to make repairs. These can be great opportunities for buyers willing to take on some work, but be thorough with your inspection.
Investor-owned properties
Investors who have been renting out a property may sell it as-is after the tenant moves out. These homes often need cosmetic updates and sometimes more significant repairs. Factor a renovation budget into your offer.
Distressed or short sales
Sellers who are behind on mortgage payments or facing foreclosure may sell as-is because they simply cannot afford to make repairs. Be prepared for deferred maintenance.
Homes with known issues
Some sellers know their home needs a new roof or HVAC and would rather sell at a discount than deal with the hassle of managing repairs. This can be a good deal if you have the cash and willingness to manage the work yourself.
My advice on as-is purchases
Do not be afraid of as-is listings. They can be excellent opportunities to buy a home below market value, especially if you are handy or have a renovation budget. But do your homework. Get a thorough inspection from an inspector who knows Florida homes. Get quotes for any major work you anticipate. And factor repair costs into your offer. As a buyer's agent, I will help you evaluate whether an as-is property is a good deal or a money pit, and guide you through the inspection and negotiation process.
