A home listed “as-is” means that it is being sold in its current condition, and the seller will not be responsible for any repairs or improvements before the sale closes. These types of listings can appeal to buyers looking for a lower purchase price or a quick closing timeline, as sellers of “as-is” homes are often motivated to sell fast.
If you’ve done your due diligence — and have professionals to support you — an “as-is” property can offer an opportunity to get into a home that may otherwise be outside your price range. However, there are risks involved, and it’s essential to approach this type of purchase carefully.
Work With a Real Estate Lawyer
It’s wise to work with both a licensed real estate agent and a real estate lawyer — especially when dealing with “as-is” purchases. A lawyer can help ensure that the purchase agreement is structured to protect your rights and minimize your financial risk.
Pay Attention to the Disclosure Statement
While rules vary by province or territory, sellers in most regions are required to disclose known issues that could impact the property’s value or safety. Your real estate agent and lawyer can help you review the disclosure carefully and determine what red flags, if any, may exist and determine if this is a worthwhile risk to take on.
Hire a Home Inspector and/or Contractor
When buying a home as-is, you still have the right to hire a professional home inspector before making an offer to ensure there aren’t serious issues with the property that you may have missed. A qualified inspector can flag serious issues like foundation damage, electrical concerns, or plumbing problems. In some cases, bringing in a contractor for a more in-depth review may also be helpful.
Include an Inspection Contingency
To protect yourself, you can include an inspection contingency in your offer. This clause allows you to back out of the deal or renegotiate the price if the inspection reveals issues that you’re not comfortable taking on.
Consult an Insurance Agent
Before agreeing to the purchase, you should meet with a home insurance agent to gain an understanding of what policies will be available to you and what types of damages will or won’t be covered. Older homes or properties with existing issues may be more expensive or difficult to insure, and you’ll want to know that before committing.
Consider a Home Warranty
Some providers offer home warranty plans that can help offset the cost of unexpected repairs. These plans typically cover systems like HVAC, plumbing, and major appliances, which can offer peace of mind for an “as-is” purchase.
Every home purchase is unique, and buying a property as-is can come with added complexity. Connect with one of our local real estate experts to explore whether this option is right for you and to help guide you through the process.
