The term as-is means that the house listed will be sold the way it was posted without any updates. In other words, the buyer must be willing to take the house as it is. By default, all properties are sold as-is. However, many home sellers make concessions to potential buyers to get their properties off the market. On the contrary, other sellers go with the as-is standards. That is, they are not open to making changes on the property.
Why do sellers choose to sell properties as-is?
Properties on the market are not perfect and sellers are aware of their issues. Sellers usually do not want to spend a lot of money on properties before selling them. If problems are minor, sellers can agree on making changes. However, there are majors problems that sellers will not work on. The following is a list of some of these major problems that sellers avoid.
- Plumbing problems
- Mold problems
- Leaking roof
- Structural problems
- Electrical issues
- Etc
The buyer’s agent can help the buyer to negotiate offers if the appraiser finds these problems during the appraisal process. If sellers really want the house gone, they will be open to negotiations. Should you buy a property as-is? You will need to understand the risks and costly defects associated with the property.
What should you do when selling a house
It is OK to sell a property as-is. As a seller, you must specifically tell potential buyers that the property will be sold as-is. This is important because you will eliminate buyers who are looking for negotiations based on defects on the property. It will also save you and many buyers a lot of time.
To further protect yourself, you must include the “as-is” term in the writing of the contract. You must also help buyers understand that they are buying the property as it is before signing the contract. Some buyers don’t know the meaning of as-is. The buyer’s agent can educate them.
What should you do when buying a house?
Before you hand your hard-earned money to the seller, you must do your homework. You need to understand the meaning of the as-is term. Should you overlook the significance of the “as-is” term and find major problems with the property later? It will be your problems, not the seller.
The following are some fo the things you can do to help you avoid future expenses when you are buying a property as it is.
- Get an appraisal
- Have the property properly inspected for major structural problems
- Have a licensed electrician inspect electrical systems in the house
- Have a plumber inspect the plumbing systems
- Have the property inspected for insect damages such as termites
- Professionally inspect the property for floods and other natural disasters
- Etc.
By following this list and other elements we did not include here, you will know the inside and out of the property. You will know what to expect if you choose to buy the property in question.
