Yes. If a house is sold as-is, a home inspection is even more important, not less. “As-is” means the seller will not make repairs or offer warranties, so any problem you find after closing is yours to fix and pay for. A home inspection shows you what you are buying before you are committed, so you can budget for repairs, negotiate the price or walk away. The same goes for HUD homes, foreclosures and bank-owned properties.
What Does “As-Is” Really Mean?
When a home is listed as-is, the seller is telling buyers they will not fix anything, no matter what an inspection turns up. You will often see this with foreclosures, HUD homes, estate sales and investor-owned properties, where the seller may have never lived in the home and knows little about its history.
“As-is” does not mean you are not allowed to inspect. In most cases you can still have a home inspection, and depending on how your purchase agreement is written, you may still be able to back out based on what is found. Talk with your real estate agent about your inspection contingency before you make an offer.
5 Reasons to Inspect an As-Is Home
- Uncover hidden problems. Foundation movement, roof leaks, electrical hazards and plumbing problems are not always visible during a showing. A home inspector looks in places most buyers do not, including the attic and crawlspace.
- Know the real cost of the home. A low price can be misleading if the home needs a new roof, furnace or sewer line. An inspection helps you see the full picture and budget for repairs.
- Negotiate with facts. The seller may refuse to make repairs, but you may still be able to negotiate a lower price based on documented issues.
- Prioritize repairs. Your report helps you sort out what needs attention right away for safety and what can wait.
- Decide whether to walk away. Sometimes the best outcome of an inspection is learning that a home is not the right investment for you.
What We Often Find in As-Is and Foreclosure Homes
Homes that have sat empty or gone without regular care tend to have a few things in common:
- Water damage and mold from roof leaks, plumbing leaks or basement moisture that went unnoticed.
- Freeze damage. In North Dakota and Minnesota, a vacant home that lost heat over the winter can have cracked pipes, fixtures or a damaged water heater.
- Deferred maintenance such as old furnaces, worn roofs, clogged gutters and poor grading.
- Pest activity from mice and other critters that move into empty homes.
- Missing or damaged items such as appliances, fixtures or copper piping in some vacant properties.
- Sewer line problems. A sewer line camera inspection is a smart add-on for any older or vacant home.
Tips for Inspecting a HUD Home or Foreclosure
- Ask about the utilities. Vacant homes often have the water, gas or electricity shut off. Work with your agent to get them turned on before the inspection so we can test the furnace, water heater, plumbing and electrical systems.
- Check whether the home is winterized. Many vacant homes in our area have their plumbing drained for the winter. If the plumbing cannot be turned on, it cannot be fully tested.
- Move quickly. As-is and bank-owned sales often have short inspection windows, so schedule your inspection as soon as your offer is accepted.
- Consider extra testing. Radon and mold testing can give you a more complete picture of the home’s condition.
The Bottom Line
A seller’s refusal to make repairs does not change what is wrong with a house. It only changes who pays to fix it. A home inspection is a small cost compared to the surprises that can come with an as-is purchase, and it gives you the information to make a confident decision.
Have more questions? Visit our Home Inspection FAQ, learn about our home buyer inspections, or schedule your inspection with Nordic Inspections today.