Friday, December 10, 2010

What Does "As Is" Mean In Buying A home

We have all heard the term "as is" when looking to purchase a home. With the foreclosure stoppage behind us now and banks, Fannie Mea and Freddie Mac putting foreclosed homes back on the market; do you really know what "as-is" means?

As is means different things to different people and differnet homes. In it's simpliest definition in regards to a Real Estate transaction it simply means purchasing a home in the present condition that it is in.

Each home can be different in regards to the condition. But, when you agree to purchase a home as-is you agree to purchase the home in the condition you have seen it in at the time of you presenting your offer. The seller agrees to sell the house in it's present condition at the time of the offer was presented.

Homes can be in different conditions and sold "as-is". Generally banks will sell a home in this condition because they have never physically occupied the home. Thus they are unaware of any things that may be wrong with the home. It does not necessarily mean the home is good or in poor condition. The bank is taking away any liability from themselves in regards to disclosing anything with the house.

The consoling part is the banks realize there may be something wrong with the house and will allow a window fo 7 to 10 days for the buyer to have a home inspection and walk away from the transaction for repairs that may need to be made.

Dave diCecco
Realtor/Broker
www.davedicecco.com

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