When a property is listed “as is,” it essentially means that the property is being sold in its current condition, flaws and all. In other words, the seller is not making any repairs, improvements, or modifications to the property before the sale. This includes both apparent issues and any hidden defects that may come to light.
As the agent representing a buyer interested in a property listed “as is”, it is my job to learn as much about the property as possible from the listing agent and any other sources available. Sometimes it is simply a matter of the seller not having the funds to make any repairs, as in a short sale or an estate sale. As the buyer, you should still have an inspection performed. Once you learn all you can about the condition of the property, you can decide if you want to make an offer and how much to offer.
But even if you decide the property just needs a little work that you could even do yourself, your mortgage lender might have an issue with the condition of the property. In general, the house has to be livable to get a conventional mortgage – heat, running water, electricity, etc. If you are pre-approved for an FHA loan, the criteria are stricter. You may need to ask your lender if you qualify for a renovation loan. (Contact me for more information about renovation loans.) In addition, the house must appraise at or above your offer price. Of course, if you are making an all-cash purchase, the decision whether or not to purchase is solely yours.