Maybe just the ticket for Home buyers to get a lot of house for the money. Some Sellers just aren’t in the position to make repairs to a home that may come up on an Inspection Objection. Instead of having to be faced with a long list of repairs, the Sellers may just offer the home at a reduced price anticipating some items that need to be repaired. Homes that are in foreclosure, a Hud owned home or a home in probate may be listed that way as well as the Sellers don’t have an idea of what the condition is.
Home buyers should consider a “sold as is” home if there are repairs that they can live with than can be done over time like cosmetic repairs or the repairs that have to be done still make that home an attractive purchase. An inspection will reveal the status of the major components of the home and buyers then will have to make a decision on the cost of any of those major repairs versus the purchase price they are getting the home for. Home buyers have the right to cancel the contract if the inspection shows defects that are above and beyond what the home buyer is willing to take on or the cost of the necessary repairs.
After an inspection that hasn’t gone well, there may be a chance of continued negotiations with the Sellers as they are now aware of defects arising from that inspection and have to disclose to another potential buyer. The Sellers are not obligated in any way to make these repairs or give buyers a further reduction in sales price, but there is always that possibility depending on if the Seller thinks he can continue to favorably market the home at the asking price.
Bottom line is “Sold As Is” can be a really good deal in some cases or ones to walk away from in others.