FAQ: Can I do a home inspection if the home says as-is?

Stacy-Ann -- you are correct, if the fixes are being required for financing to be approved, many times the fixes will get done.  We had a home earlier this year where the roof was leaking, there were holes in the walls, one sink was missing, and the exterior needed painting.  Even though it was REO -- the bank paid to get those things done, to meet lending qualifications.

I personally would rather know all that is wrong with my as/is purchase from a neutral third party! 

Every market is different, here in Mahattan New York, we sell mostly condos and coops, home inspection usually is done by the buyers walking through the condos or coops to ensure all is in working order, we do not hire home inspector to inspect within four walls.

Stacey --

I agree too! We always have our clients do a physical inspection. If they refuse, we have them sign a waver. Even with foreclosures, the banks will do some repairs, even when they say they won't. (Short sales are different when it comes to the repairs of course. Those sellers usually don’t have the money or desire to make repairs.)

We had one REO with a roof problem as well and the bank repaired the issue. Not saying they will always do it, but it never hurts to ask!

ALWAYS GET A HOME INSPECTION. Can't emphasize that enough.

Good advice.  We ALWAYS advise our clients to have a professional home inspection.  We don't want them to have any surprises after they move in!

Home inspection is a must when it comes to selling REOs here in our market.  Most of my clients are first-time home buyers with FHA loans.  I always advise my clients that everything has to be in working condition.

Hello Stacey-Ann  - the California purchase agreement states all properties are sold in "As Is" condition -- inspections are for the benefit of the buyer and the buyer can cancel the transaction for any(or no) reason during the inspection/investigation time period.    The physical inspection is a crucial part of the transaction.    

Hi Stacey Ann - I always urge my buyers to get a home inspection, even on a brand new home.  If they resist, I ask them to sign a release, stating that I recommended a home inspection and they refused.

The inspection is time and money well spent to determine what current and future problems exist in the home, even if the owner isn't going to repair or replace anything.

I couldn't agree more.  As is doesn't mean don't have an inspection done.  Great post and congrats on the feature.               

Stacey, doing a home inspection even if it is for information purposes only, a buyer can learn a lot. I would like to know if there are any major issues whether or not the seller is willing to pay for any repairs.

ALWAYS do a home inspection. Even if the seller is non-negotiable, even if you cannot back out (which you almost always can). You learn a lot about your home at an inspection. How things work, what needs attention, what doesn't.

As I tell my clients, with an inspection of an as is house you can prioritize your repairs which in the end saves you money.

HEy thanks for sharing with us this informative post today.  I enjoyed it very much. 

Have bookmarked it for future reference.

Patricia Aulson/ Seacoast NH & ME REALTOR

Good post!  It is very confusing to a buyer when they read about a home being sold "as-is".  I do a lot of foreclosures and short sales all of which are sold as-is.  I've had several agents ask if that means their clients can't do an inspection.  Always, always, always have your buyer do an inspection!  That is their right.  You may not get a seller to make any repairs, but you do have the right to know the condition of the property BEFORE they buy it. 

Thanks for the advice Dr. Stacey, many people are not aware of this and many are amazed at the number of big ticket repairs are required on a distressed home.