Dear David,

We’re in the process of downsizing, and have been searching for a home for the past few months. We’ve finally found a bungalow we like, but the property is being sold “as is”. The house is about 25 years old, and we’re not sure how to interpret this language. Should we be worried, and what steps can we take to move forward safely? – RATTLED

DEAR RATTLED: First of all, congratulations on finding a bungalow you love. These types of  properties are typically in high demand and short supply, so finding one that feels like home is  truly a big step forward. Now you can make sure it’s the right fit, inside and out.

It makes sense to be cautious when a home is listed for sale “as is”. But before you panic, take a moment to consider the logic behind the label. There are several reasons why a home might be sold this way, and not all of them are red flags. 

Consider this: when a property is being sold as a Power of Sale, Estate Sale, or Sale by Power of Attorney, the seller may not have firsthand knowledge of the home and therefore can’t make any representations about its condition. In these scenarios, the “as is” label doesn’t necessarily  mean there’s something wrong with the house, it just means the seller is not in a position to provide any guarantees.

In some situations, “as is” may reflect a known issue with the property, such as an aging roof, outdated electrical system, or concern with the foundation. As a buyer, understanding the scope of the problem and how to fix it is where due diligence comes in. Due diligence might include having a qualified home inspector go through the property, bringing in skilled tradespeople for a closer look (roofers, electricians, etc.), reviewing any available documents (such as permits, past repairs and utility bills), or having your lawyer check the title for unusual clauses or liens.

When you know the reason for the “as is” status, you can decide how to move forward.

At the end of the day, you need to understand exactly what you’re buying. If you’ve done your homework and the house still checks all your boxes, the “as is” label doesn’t need to scare you away. Alternatively, if the “as is” element is more than you bargained for, you can walk away confidently, knowing you asked the right questions.

Pro Tip: I often compare home buying to dating, and in a fairytale scenario, you may need to brush a little dust off a frog to see if it’s actually the prince (or princess) you’ve been searching for. Many of us introduced prospective partners to family and friends before committing. By the same token, you can run an “as is” house past trusted professionals for honest feedback and some extra peace of mind. Once you get to know the house, you’ll be better positioned to either make an offer with confidence, or continue with your home search. #Advice #AskDavid #TheNegotiator