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What buying an “as is” house can mean for you 

On Behalf of | Feb 4, 2025 | Real Estate |

Buying an “as is” house can offer many advantages. For example, “as is” properties are often cheaper and transactions typically take less time. However, just like when buying any other house, it is crucial to consider what an “as is” transaction might entail. 

What does “as is” mean? 

When sellers list homes “as is,” it means they are selling them in their current conditions. They will not do any repairs and the current asking price reflects the home’s condition. That said, the property may include issues, such as: 

  • Structural problems 
  • Water damage 
  • Pest infestations 
  • Cosmetic issues 

However, not all “as is” listings include major problems. In some cases, sellers do not have the funds to make renovations or simply want to sell the house as soon as possible. 

As with all other sellers, New Jersey law requires “as is” home sellers to complete disclosure statements. They must list all known material defects or, more specifically, problems that may affect the property’s value and your decision to buy it. 

Can you perform a home inspection? 

A home inspection can help reveal the true state of the property. Not all “as is” sellers will allow an inspection, but most do so to avoid deterring potential buyers.  

Information from a home inspection can help guide your decision and possibly negotiate the price. For example, if the inspection reveals extensive water damage in the attic, you can use it as a basis to lower the asking price. 

Can you back out of an “as is” transaction? 

It is possible to withdraw an initial offer or cancel a purchase agreement, but it might come with financial losses.  

For example, you may want to include a home inspection contingency clause. Doing so can allow you to back out of the contract if the inspection shows significant damage. However, you may have to spend hundreds of dollars on inspections for a property you might not buy. 

Why legal help is crucial 

An “as is” transaction can be much more complex than a regular real estate deal. It may also be far riskier if the property needs significant repairs. 

That said, legal guidance may be necessary. A real estate attorney can help you mitigate risks by reviewing the seller’s disclosures, including contingency clauses in your contract and explaining the nature of the sale. 

By doing your due diligence, you can better understand if buying an  “as is” property is the right choice for you. 

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