“AS IS” Selling or Buying
First thing to consider is the definition of “As Is”. This can range all the way from “there was a fire/flood and whatever issues that exist, you’re buying them” to “Some minor issues might come up in an inspection (outside needs to be painted/slight seepage in the basement of an older home/windows need sealing, etc.) and I’m not going to fix them”. It could also be something as simple as that the home has never been updated yet the structure and guts of the home has been very well maintained giving you a great investment opportunity especially if you’re able to perform the updates/repairs yourself.
SELLING: If you choose to sell your home “as is” consider noting in your advertising the nature of the issues and how you’ve taken that into allowance when pricing your home. If you aren’t really sure what the issues might be with an inspection, consider the cost of having one done prior to putting your home on the market and use that to explain your asking price. Don’t be afraid to show comparisons of what other homes have sold for that had similar issues or have sold for more than you’re asking to reflect the deduction you’re making with your price.
Options: (1) Decrease your asking price to reflect the buyer’s cost to make needed repairs. (2) Offer an allowance to be credited to your buyer at closing. (ie: If you know the exterior needs scraping and painting, get 3 estimates from painters and offer the average cost as an allowance. Use the estimates to justify what you’re offering.
BUYING: Don’t shy away from a property you that meets all your criteria simply because it is being sold “AS IS”. It could just be that the owners can’t afford to or just are choosing not to make the repairs or updates prior to selling and so are using this manner to possibly get out of a bad situation or get a quick sale making this a great opportunity for you. Again, this is especially true if you’re a hands on homeowner with skills to do the repairs yourself. Even if the seller shows you an inspection they had done, you may want to consider bringing in your own inspector just to get another opinion. Even though the seller is not willing to pay for any repairs that come up in an inspection, you can still make your offer contingent on having an inspection done. Once you know what needs to be done, you can calculate your offer + cost of repairs and then decide whether or not you want to proceed.
Whether Selling or Buying, “As Is” can create both positive and negative situations so the key is to educate yourself, have a thorough inspection done, work the numbers and decide if this label benefits you and your home selling/buying goals.