Buying a home 'As Is'
Many times buyer will come across homes that are listed “As Is” and that the seller’s will not perform repairs, should they still get a home inspection? The overwhelming answer is yes! The true purpose of the home inspection is not to identify additional negotiable items but rather to inform buyer of the true condition of the property.
There are at least four major reasons some home sellers want to sell "as is": (1) the seller doesn't want to correct the readily apparent defects and prefers to let the buyer fix the problems; (2) the home is rundown and the seller would be wasting money on minor repairs; (3) recently acquired the residence by inheritance or purchase and is reselling for a quick profit; (4) doesn't want any responsibility for fixing problems that might occur after the sale closes.
The best way for a buyer to protect against unpleasant and expensive surprises is to include a professional home inspection contingency clause in the purchase offer. That means, after the seller accepts the buyer's purchase offer, the buyer hires a professional home inspector and then based on the report determine if they want to continue the purchase.
In most professional home inspections serious defects will be discovered that affect the habitability or value of the home. When that happens, the buyer has several alternatives. One is to cancel the purchase and recover the deposit. But a better alternative is to use the professional home inspector's written report to re-open negotiations to obtain a repair allowance for the estimated cost of correcting the unexpected problems. An allowance or credit is usually better than a price reduction because the mortgage amount is usually not affected. Another advantage of a repair allowance is the buyer can shop around after the sale closes and often reduce the actual repair cost.
Just because a house or condo is offered for "as is" does not mean that you cannot negotiate for defected items found in the home inspection. “As Is” home purchases can represent a true bargain or could be a wreck and be taken as “caveat emptor.” Smart buyers should exercise due diligence to protect themselves.
Rick Bunzel
Pacific Crest Inspections
Affiliate of the Year 2006-2007
WWW.PacCrestInspections.com
360-588-6956
Fax 360-588-6965
Toll Free 866-618-7764
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