Photo “borrowed” from Ugly House Photos
When looking to purchase a home in Philadelphia you may run into a home that’s listed in “as-is” condition. This generally means that the seller will not or cannot make repairs. Just because a house or condo is offered for sale “as-is” doesn’t necessary mean it should automatically be rejected. An offer can be made with contingencies that protect the buyer.
What is An As-Is Home Sale?
- Seller must disclose to the buyer all known material defects of which they are aware.
- Sold without any warranties or representation.
- Seller need not pay for any repairs to correct material defects.
Why Homes are Sold As-Is
- Seller does not want to pay for any repairs.
- Seller is not in the financial position to pay for repairs.
- It already is a fixer-upper and seller would be wasting money on repairs.
- Seller doesn’t want the hassle and inconvenience of fixing the problems.
- Recently acquired the home by inheritance and doesn’t live in the area.
- Bank owned properties are almost always sold this way.
How As-Is Home Buyers Can Protect Themselves
- The Best way for a buyer to protect themselves against the unknown is to include a professional inspection contingency clause in the purchase offer. Even though it’s “as-is” a buyer should know exactly what they are buying.
- Forget home warranty policies offered by the buyer. Home warranty companies are pros at using the pre-existing-condition exclusion.
As-Is Home Buyer Alternatives
- Cancel the purchase and obtain a full refund of your good faith deposit.
- Negotiate a repair credit, this works well in a buyer’s market.
- Get a reduction in purchase price.
- Accept the property in it’s present condition especially if you purchased it at a bargain price.