Should a house that is being sold as-is be a concern?

[Reasonable Doubt]

Should a house is being sold as-is be a concern? Does it usually mean that the owner is hiding something?

The house being sold as-is that I'm looking at was built in 1985.

 

[MongGrel]

Hire an inspector to check it out if you are serious about buying it.

I thought for most people it was a condition anyway, unless you were buying it out of pocket.

That and a title search.

 

[Paladin3]

buyer beware, have it inspected and do your due diligence.

 

[Red Squirrel]

Yep have it inspected. Whether it's new, old, as is, warrantied, etc there is always the potential for issues to pop up. Inspection can't catch EVERYTHING though, so it's just something to keep in mind. I had a leaky basement, not really something my inspector caught, as the basement was finished and there were no immediate signs of leak. I only found out years down the line as it took very specific conditions for it to be apparent. Basically a torrential downpour when the ground was still frozen. I had previously tore out the basement because of moist smell and it was just badly done in general and easier to just redo it better. The walls were dry for a few years. So even if it had not been finished it would really not have been something easy to catch.

 

[NutBucket]

No, it is what it is. We're possibly buying a house being sold that way. All it means is they won't fix anything as a condition of sale. No big deal as i wouldn't want the seller fixing stuff as I'd rather do it myself.

You can always back out of the contract if inspections reveal major problems. The inspection contingency is still in play.

 

[PowerEngineer]

No, most houses are sold "as is", meaning that there is no implied warranty. If the furnace breaks down three weeks after you move in, the cost of repair is on you - not the seller. While some newer houses might come with the balance of a builder warranty, a 30+ year old house (built in 1985) will always be "as is". In many states, sellers are obligated to provide information on problems they know about, but it really is up to the buyer to negotiate (and pay for) a thorough home inspection to uncover any hidden problems before the sale is consummated.

The same is true when buying and selling cars. Unless you're dealing with newer cars that still have remaining dealer warranties, cars are almost always sold "as is". It's up to the buyer to decide whether or not to pay for a pre-purchase inspection before agreeing to purchase a car.

IMHO the "as is" stipulation does NOT suggest that the seller is "hiding something".

 

[Aharami]

Not if you get it properly inspected and know what you're getting into

 

[BoomerD]

Sold as-is doesn't imply a problem, just that the sellers won't fix any problems that might crop up in an inspection. Just be sure your offer is contingent on the results of an inspection. I wouldn't hesitate to buy an "as-is" house if it had a clean inspection...but then again, I wouldn't buy ANY house with out a thorough inspection...including pests, roof, and structure.

 

[Imp]

Will "as-is" stand up in court?

 

[BoomerD]

Will "as-is" stand up in court?

Unless the state law specifies that the seller must disclose any known issues...yes.

 

[dud]

All of the real estate contracts that I've had drawn up were sold "as-is" in the context that the seller was liable for up to a certain amount of repairs to the house (typically $500 max). If, after the buyer's inspection significant damage is found then the buyer has the option to pull out of the contract.

 

[BarkingGhostar]

Should a house is being sold as-is be a concern? Does it usually mean that the owner is hiding something?

The house being sold as-is that I'm looking at was built in 1985.

As-Is still means it has to be sold with full information. For instance, it wiring was done to an added, renovated or completed after construction and was below code they still have to inform you. As-is just means they aren't spending a dime to fix it beforehand.

 

[FerrelGeek]

Unless the state law specifies that the seller must disclose any known issues...yes.

If you live in IN of OH, you have to disclose.

 

[Eug]

As-Is still means it has to be sold with full information. For instance, it wiring was done to an added, renovated or completed after construction and was below code they still have to inform you. As-is just means they aren't spending a dime to fix it beforehand.

Around here you don't have to tell them much unless they specifically ask. But if they ask, you must disclose and cannot lie.

BTW my house was as-is and I bought the house conditional on inspection. I got an inspection and it turned out only half the house was air conditioned but the listing just said the house was air conditioned. So I said they can drop the price by $5000 to compensate and they agreed. My real estate agent was freaking out because he thought he might lose a sale but whatever. He got his commission in the end.

 

[z1ggy]

I don't think there's any particular reason to be "alarmed" more than normal, unless the house is a total dump, or very old. 1985 build, you shouldn't have to worry about things like galvanized pipes, lead paint, etc.

 

[JulesMaximus]

Not sure what states you guys live in but here a home inspection is pretty much part of the cost of selling a house and if you are financing the home no bank would ever agree to loan you the money without having a home inspection done. What the seller is basically saying is that whatever repair requests come out of that inspection they aren't willing to pay for any of it and they're letting you know that up front. If I liked the home then this would not put me off making an offer. If something catastrophic came up in the home inspection you could always walk away from the deal at that point.

 

[Zeze]

As opposed to what? Aren't ALL houses sold 'as is'? And if you got it inspected and crap surfaces, than you negotiate the price accordingly. Of course the house is sold as-is.

Or the seller meant house is sold with a firm price? That doesn't make sense either.

 

[z1ggy]

As opposed to what? Aren't ALL houses sold 'as is'? And if you got it inspected and crap surfaces, than you negotiate the price accordingly. Of course the house is sold as-is.

Or the seller meant house is sold with a firm price? That doesn't make sense either.

I'm guessing maybe this is a foreclosure or estate sale? But either way it probably just means seller isn't willing to pay for any repairs needed when inspection is done. If the price is very below market value, to me this would indicate the seller knows something will need significant repair. That should be reflected in the property disclosure report they provide. I'd be very sketched out by a house that looked completely free of issues that was being sold "as is" but also very under valued.

 

[Eug]

Not sure what states you guys live in but here a home inspection is pretty much part of the cost of selling a house and if you are financing the home no bank would ever agree to loan you the money without having a home inspection done. What the seller is basically saying is that whatever repair requests come out of that inspection they aren't willing to pay for any of it and they're letting you know that up front. If I liked the home then this would not put me off making an offer. If something catastrophic came up in the home inspection you could always walk away from the deal at that point.

Houses get sold all the time here in Toronto without home inspections. The problem here is very limited inventory for detached homes. There have even been bidding wars.

Thus, the seller almost never gets a home inspection done. The buyers may on their own, but some will just buy the home not contingent on a home inspection. The banks are usually OK with it if the buyers' financials are OK, and the house is not out of the ordinary and not too high priced.

Also, a fair number of homes are small old bungalows which are destined to be torn down, with 2-story McMansions built in their place. Obviously, for those sales, home inspections are totally pointless. The problem here is that new subdivisions are way too far out of town, and people with the money don't want to move out that far. So, what they do is either buy a pre-existing home in town, or else they buy an old war-time home for essentially just the land price and change, and rebuild a brand new home on that land, eating the much smaller cost of the existing home and demolition costs.

 

[piasabird]

I say get an inspection and look for a lot of different things like plumbing, leaky basements, poor quality of bathrooms and kitchens, Furnace, Air conditioner, Electrical service for hookups of Stove and refrigerator as well as 3 prong grounded plugs. Lead paint, electrical service box. Insulated windows, Insulation in attic, serviceable chimney, Roof, Water Heater, floors, walls, doors, etc.

Some people look at a house as an investment, but it requires a lot of maintenance and can become a giant pit you have to keep throwing money into.

Basically, for every Item you find wrong account for the money you would need to fix it or repair it or replace it. Then demand the home owner discount the selling price. It might be worth it if you make your home loan include the improvements needed for the bank. You are buying the house and the repair costs as well to bring it up to code.

 

[piasabird]

It could be like buying a foreclosed property.

 

[Humpy]

I am selling my house next year and plan on making clear it will be sold "as is", meaning there is an obvious list of deferred maintenance that needs done. Probably $40k worth of bathroom, paint, roof work, windows/screens, landscaping, etc. that most sellers take care of before the sale.

I can spend the money and probably get it all back, or let the buyer spend the money. The advantage I have is location, I know it will sell so I don't see much reason to go through the inconvenience and have absolutely nothing to hide.

 

[zinfamous]

It just means that you and you alone are responsible for the bodies in the basement.

 

[monkeydelmagico]

As is is almost as good as foreclosure. They just tipped their hand that they have no money and need to sell. The buyer is in the drivers seat on the negotiations.

 

[MrSquished]

Houses get sold all the time here in Toronto without home inspections. The problem here is very limited inventory for detached homes. There have even been bidding wars.

Thus, the seller almost never gets a home inspection done. The buyers may on their own, but some will just buy the home not contingent on a home inspection. The banks are usually OK with it if the buyers' financials are OK, and the house is not out of the ordinary and not too high priced.

Also, a fair number of homes are small old bungalows which are destined to be torn down, with 2-story McMansions built in their place. Obviously, for those sales, home inspections are totally pointless. The problem here is that new subdivisions are way too far out of town, and people with the money don't want to move out that far. So, what they do is either buy a pre-existing home in town, or else they buy an old war-time home for essentially just the land price and change, and rebuild a brand new home on that land, eating the much smaller cost of the existing home and demolition costs.

Even on new construction I'd advise my clients to get a home inspection. Not all builders build things right. It's a small cost to pay to be sure. In New Jersey all new construction must come with a 10 year Builder's Warranty. The builder gives a 1 year warranty on appliances and 10 years for all things structural like plumbing, electrical, the roof, etc... So that's nice.