What Does It Mean to Sell a Home “As-Is?”
All too often I see homes listed as being sold “as is”. There are certainly pros and cons of listing a home as-is. And buyers and sellers need to know what that truly means.
I have seen listings that proclaim this property is “turn key” ready or “shows well”. And then it indicates that the property is “as-is”. The seller’s version of an as-is property is that the seller does not intend to make any repairs to the property. This may or may not be a wise move. Some repairs are relatively simple and certainly should not get in the way of closing a deal.
The buyer’s version of an as-is property is that there must be something wrong with the property – and they are most likely correct. It also tells the buyer that there is something wrong with the property and I’m not telling you (buyer) about it. It takes us back to the days of “caveat emptor” (let the buyer beware).
But sellers and buyers need to understand that by simply checking off a box that says, “as-is” it does not relieve the seller of revealing latent defects. Latent defects are faults in a property that could not have been discovered by a reasonably thorough inspection before the sale. Whether a property is being sold as-is or not, these defects must be disclosed to a potential buyer.
Certified Home Inspectors have come a long way in detecting defects in a property, but there are still many latent defects that can go unnoticed. One example of a latent defect is a septic system that is no longer in use. Even though the tank may be empty, in time, the concrete will fail and there will be a section of land that will sink into the old septic tank. Many of the older properties did not record where the septic tanks were located, and it is possible that current home owners have no knowledge of the old tank. Nevertheless, if the seller has knowledge, it is incumbent upon the seller to disclose that fact.
If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.
As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.
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