What does “As Is” Mean when Selling a Home?

Selling your home or buying a new one is quite the process. It may be foreign to you, but you need to understand some of the details of the process. Of course, hiring a great real estate agent in New Orleans will go a very long way to helping protect you during the buying or selling process.

When it comes to an “As Is” house, it’s not the same as what you may think. We are used to hearing this term with a vehicle and it means you don’t get a warranty. However, it doesn’t mean the same thing in the real estate world.

What does “As Is” Mean with Homes?

When it comes to a home sale, “As IS” means without warranties. It also means the buyer won’t have any right of redhibition, which means they cannot sue for defects uncovered after the sale has been finalized.

Why is this Different?

It may seem like “As Is” is the same as it would be with a vehicle sale. However, it’s quite different when it comes to real estate.

When you buy a vehicle, you may have it inspected before you purchase, but many buyers don’t do this. With a home, you likely will have no choice. Your lender will require a specific type of home inspection before completely approving the mortgage. Of course, this benefits you as the buyer, too.

In addition, real estate contracts come with a due diligence period. Buyers have the opportunity to put in an offer, have the home inspected and cancel the deal if the inspection comes back with issues. Sellers can decide not to make any repairs or they can decide to have repairs done to satisfy the buyer.

Typically, if a home goes on and off the market, it could have a problem showing up on the inspection. The seller may not be willing to fix the issue and will likely end up lowering the price.

Advice for Sellers

If you’re selling a home in New Orleans, get your own home inspection done before listing the property. You will be able to choose which repairs to make from the inspection and there will be no surprises. You can also be upfront with the buyer, which gives you a better chance of the contract going through.

Advice for Buyers

Make sure you get a quality home inspection done and be as thorough as you feel comfortable with. If you want more than just the required lender’s inspection, get additional inspections. This is a large purchase and you need to feel comfortable before finalizing the paperwork. Don’t let the “As Is” term scare you as the home will be inspected before you finalize the contract.

“As Is” can be a tricky term in real estate and can be scary. It’s not the same as with vehicle purchases. With the home, you get to make the offer, and then do an inspection before finalizing the contract. With a good real estate agent on your side, you’ll have a better understanding of the process and what to expect with “As Is” in a real estate transaction.