True or False: Home Buyers Purchasing “As Is” Usually Skip the Inspection

“As Is” ≅ “Pass/Fail”

[Editor’s Note:  The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.  If you need legal advice, please consult an attorney.]

It seems obvious: if the Seller isn’t going to correct anything — the definition of “As Is” — why would the Buyer still do an inspection?

Answer: because if an inspection turns up a material defect (or several!) . . . the Buyer may not want the house!

Determining the Home’s Condition

In practice, then, an “As Is” Addendum does not preclude the Buyer doing an inspection.**

Rather, it usually turns the Inspection into a “pass-fail” test (although nothing prevents the Buyer from negotiating a price adjustment if the inspection reveals defect(s) AND the Buyer still wants the home).

**Given that many homes sold “As Is” often waive the Seller’s Disclosure — appropriate when the Seller has never lived in the house (estate sale, rental, etc.) — Buyers purchasing such homes are especially well-advised to inspect.



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