Buying "As Is"?

Here is a great piece from HGTV's My First Place. It is a wonderful illustration of how everything really is negotiable in real estate transactions. It is very common for corporate or bank-owned homes to be sold "as is - where is". These corporations and banks do not live in these home of course, and do not make any representations as to the condition of the home. The buyer is expected to rely on their own due diligence. Since the buyer will be putting their own resources into repairing the home, the seller sets the list price accordingly.

Here, the seller was motivated to work with the buyer they had in-hand. If they killed the deal over the inspection issue, they will still have to confront the very same problem with the next buyer. And who knows when that buyer will come along! In the meantime, they will still have to fix the leak to avoid further damage to the house. Going back to the negotiation table in this transaction was a win-win for everyone.


Tip: Before you enter into a purchase agreement to buy a home in "as is" condition, be sure to include a cost-of-repair contingency. Don't ever lock yourself into buying a money pit!