Selling "As-Is"...What does this mean?
Updated: Mar 10, 2022
"We want to sell the house As-Is." is a very common thing for me to hear when meeting with the heirs of the estate. Though I hear a variety of reasons, it usually comes down to the fact that they just do not want to hassle with fixing up the house. In a strong Seller's Market (like the one we find ourselves in right now), it is extremely easy to do this since most buyers are happy to remove the inspection contingency in order to finally get a house. When the market eventually slows down, Sellers will need to make sure to price the house accordingly if they choose to sell As-Is.
Selling As-Is does not mean the Buyers are not going to do their own inspections. If they use a Special Sales contract and include the Inspection Rider with it, they basically have the same contingency as if it were written on a normal sales contract. The main difference is the Seller is not responsible for the occupancy inspection if required by the municipality/county. Buyers will most likely still have a building inspection done or (especially with investors) have their contractor do a walk through.
Be prepared for the Buyers to ask for price reductions or other concessions after they do their inspections/walk throughs. Owner-occupant Buyers will most likely ask for something if larger repairs are found (ex: roof, HVAC, sewer lateral...etc). Investors will probably say something along the lines as "There ended up being a lot more work than expected so we'll need to lower the price to ...". Sometimes they're just asking to see what they can get and others times the Buyer is willing to walk away if an agreement cannot be reached. It really depends on the situation and an experienced Realtor can guide you through it.
Selling As-Is can make the selling process go pretty easy for the Seller. Before making this decision, take an honest look at the house, discuss the pros/cons of each option and decide what's best for your situation.