What Does “As Is” Mean?

The housing market in the Bay Area is so hot. There is such competition among Buyers that many Buyers are purchasing a home “as is”. It’s really important for Buyers to understand what that really means. And once you understand that, then you can determine if you want to include that in your agreement or not. So here’s what it all means:

 

“As is” means you will not request any repairs from the Seller. If any issues or repairs are discovered during the investigation period, the Buyer will not ask the Seller for repairs or compensation for those issues.

 

If you write an “as is” offer, you will need to do the due diligence during the investigation period that’s determined in your contract. Make sure you bring in the right inspectors to look at the condition of the home. Your REALTOR will help you set up those appointments. That way, you can know exactly what the condition of the home is and you can determine if you have the financial resources in order to fix those issues after closing of escrow.

 

And finally, check with your Lender. Some loans have conditions on them regarding repairs. So be upfront with your Lender, and find out what parameters are on your loan.