What are 'AS-IS' Home Inspections, and Why Home Buyers Should Consider Them?

In today's real estate market when bidding wars are the norm, a lot of home buyers are writing offers to accept the home in it’s 'as-is' condition. And in some cases, buyers are 'waiving' inspections all together. As your local Realtor resource we have summarized below our professional opinion on this: why sellers like this, what it means in detail, and how we will protect your best interests with your next home purchase. 

"AS-IS" HOME INSPECTIONS

• When you write an offer with a clause that states: home is “as-is”, you are telling the seller: “We know all homes come with issues. And we are not going to ‘nickel & dime’ you during the inspection period.  We calculated in our price to accept the home in it’s current condition & will address issues when we become the home owners” 
• Understand “AS-IS” clauses do NOT mean ‘no inspections’. They still allow the buyers to pay for a thorough home inspection.  This allows them to hear from a licensed professional all the repairs & maintenance either needed, will be coming due in time, or simply things to monitor as the new owner of your home. 
• A typical  rule of thumb is that a buyer should expect on average approximately 1% of the home purchase value of repairs they will want to consider taking care of once they are owners.

WHAT ABOUT MAJOR ITEMS THAT COME UP DURING THE INSPECTION?

 In real estate, it’s not uncommon for something major & significant (in costs to repair) to uncover itself during a home inspection.  This can include such things as: roof age & issues, faulty foundation, water issues in the attic or crawlspace (and possible mold), unprofessional home additions, septic issues, and more.  We intentionally construct our contracts to protect our buyers from taking on more than they want, giving them the option to terminate without losing their earnest money, and walking away without feeling stuck to a home that is a ‘money pit’ for them. 

In summary, not all homes are great candidates for ‘as-is’ home inspections.  But with homes that don’t seem like obvious ‘money pits’, they can be a great tool to add to & strengthen your offer with.  As your real estate agent & professional representative, we'll take the time to guide you through this, be present with you during the home inspections, and always protect your best interests.