“As-is” is an easily misunderstood term. This is what it means for you.
One of the most commonly misunderstood and misinterpreted terms in real estate is “as-is”. It’s easily mistaken because, unlike a professional real estate agent, it’s not your job to read the entire contract and know the process inside and out. However, the term “as-is” actually applies to all real estate purchases per the California Association of Realtors purchase agreement that 99.9% of real estate agents use.
This term means that the home is sold in the condition that we see it in. An example would be if a home has a big hole in the wall or some other defect that anyone could notice. The offer that we make is contingent on that condition. After that, the inspection takes place, and any negotiations for repair or credit are held. The important thing to note here is that nobody is locked into anything or required to move forward.
The only situation where this may get more complicated is when the buyer writes into their offer that they are purchasing the property as-is and that they’ll take the property no matter what. Even in this circumstance, however, the buyer still retains their 17-day inspection window, and they have the right to ask for any repairs or credits based on that inspection. They also maintain the right to back out of the agreement if something comes up in that inspection that they don’t like.
I hope this sheds a little light on the term “as-is” and clarifies its use and meaning. If you have any questions about this topic or real estate in general, please feel free to contact me by phone call or email. I’d love to hear from you.