I get many people email me about a property that states in the remarks section that the property is being sold as-is with no termite letter. Many first time home buyers seem to get really nervous when they see these statements. They are expecting the home to be in total disrepair.
Most of the time these statements are in listings that are bank foreclosures or corporate relocations. All that it means is that the bank or relo company is making no claims about the condition of the home because they don’t have any actual knowledge of past events. They took over the home in the condition thta it is in and they are just saying that they don’t make any guarantees.
It really doesn’t change a thing. You negotiate a contract with the right to inspect. Usually you use the inspection clause that allows you to terminate during the inspection period for whatever reason you want. You do your inspection and if you find anything that is significant, you just renegotiate the contract taking those things into account.
The risk you take is that if there is something that is not able to be found by doing an inspection, there’s no possibility to be able to possibly sue the seller for failure to disclose a hidden defect.
Bank foreclosures usually never make any repairs on anything. Corporate relo companies many times will do an initial inspection of the home before they put it on the market to allow them the possibility of fixing problems ahead of time. Sometimes they will agree to pay closing costs in lieu of any repairs that are needed.
So don’t automatically fret over buying something as-is. It good turn out to be a great opportunity.