HUD Articles

An AS IS sale typically means that the seller is not willing to make any repairs to the property or renegotiate the sales price due to repairs. This includes any repairs that are discovered during inspections or are required for appraisal. The property is being sold in its current condition. This type of sale is usually used with bank owned properties and estate sales where the seller has never lived in the home and has little or no knowledge of the condition of the property. Stating that the sale is AS IS communicates to the buyer that they should rely on their own investigations to determine the condition of the home and that the seller does not guarantee that things are in working order. An AS IS sale can also be used by someone that does not have the money or the time to make repairs to their home before selling. Seller’s disclosure laws still apply with this type of sale and any known issues will have to be disclosed to the buyer.

Buyers hoping to purchase an AS IS home using financing will want to check with their real estate agent and their lender first to make sure that the condition of the property will qualify for the type of mortgage they are getting. They will want to do their due diligence and know what they are getting into. They should have professional inspections done and get bids for repairs to make sure they have enough money in their budget to cover any issues that need to be corrected. An AS IS sale can be a great opportunity for buyers that are willing to do some extra work.