When shopping for homes, you might come across a few that are “as-is” and this just means that the seller is not willing to make any improvements to the home prior to settlement. A lot of times, homes are listed as-is because they’re either bank-owned, estate sales, or the seller simply doesn’t have the time, energy or money to make any changes.
As you can imagine, as-is homes can scare some buyers away – which ultimately can make them a really good deal because there’s less competition for them. It’s important to note that while the seller will not make any improvements or repairs to the home, you can still have a home inspection and back out of the deal (and keep your deposit money) if there are any issues with the property.
Another important consideration is that if you’re in a municipality that requires a Use & Occupancy (“U&O”) inspection, there might be some repairs required by the township or borough. In the case of as-is homes, this burden to finance and make the repairs is often placed on the buyer. The same goes for FHA inspections, if that’s the type of loan you’ll be getting.