As Is Where Is: What does this mean for the Buyer?

August 30, 2023

As Is Where Is: What does this mean for the buyer?

We’ve all seen it. You’re browsing the latest listings to hit the market and you see at the end of the description “as is where is” if you’re like most, you’re probably left wondering what the heck does that even mean? Well, the phrase “as is where is” means that the seller is selling their property in its current condition and the purchaser must accept it “with all faults”. The buyer takes ownership of whatever they see and if there are any major problems with the item (e.g., electrical or plumbing issues), the buyer is responsible for correcting these issues.

To put it into context, imagine you are buying a cute cottage in the Kingston Peninsula and notice that the seller puts it on the market “as-is.” This means that you will be responsible for any repairs or improvements needed on the home after closing day.

People often assume that when a property is listed “as is” that it means the property isn’t in good condition. In some cases this might be true, but not always. Sometimes sellers will do this just to ensure they remove themselves from all responsibility of the property. This is usually the case with an estate sale or when a person has a Power of Attorney for the seller. They, themselves, have not lived in the home and therefore can’t truly speak to its functioning and history. When you start to do your research on the property it’s always important to work with a confident Realtor who can share all the pertinent information.

With an as-is where-is listing, it’s up to YOU (the buyer) to make sure everything is working properly before closing day. In most cases, sellers don’t have any obligation beyond this point either – meaning if something goes wrong after closing day and there’s nothing they can do about it because they already sold their property. There are actions to make you feel more at ease when buying an “as-is” property. They include; a general home inspection, a septic system or sewer line inspection, having an electrician and/or plumber have a look at the mechanics of the home and then also consult with the current homeowner’s insurance company to see about continuing with coverage. They would also be able to give any insight about any claims against the home.

If you’re thinking about buying an “as-is” home, just make sure that you do your research and check for any issues with the property before making a purchase. An “as is” property can be one that has a huge upside in long-term potential or it can be a situation that leads to an unnecessary headache. If you’re currently looking at any properties for sale in the Greater Saint John area and have questions about an “as is” property, I’d love to be the one to help.

xoxo – Charlotte