A home being sold as-is is not an unusual circumstance.  There are many reasons why a seller may choose to go this route to sell a property.  Sometimes, the home was inherited and the new owner doesn’t have the funds to repair anything.  Other times the property is in such disrepair that it will need a complete gut.  As a buyer, purchasing a home being sold as-is means that the buyer is taking on the responsibility of repairing issues in the home.  Depending on the condition of the home, this can be costly.  That is why doing a home inspection for informational purposes only is important.

Why do buyers complete home inspections?

Home inspections allow buyers to take a deeper look into the condition of a home before purchasing it.  Having a home inspection makes buyers aware of any potential concerns with the house and allows them to decide if they want to continue with the purchase of the property.  Buyers and sellers agree on the terms of a home inspection in a real estate contract.  

Buyers and sellers can agree to

  • A home inspection with a negotiation for needed repairs
  • A home inspection for informational purposes only
  • No home inspection

A home inspection is completed by an independent certified home inspector.  Learn more about the process here.

Can I do a home inspection even if the home is being sold as-is?

Yes!  This is called a home inspection for informational purposes only.  In this situation, the buyers go into the inspection knowing that the seller is not going to repair any issues found during the inspection.  After the home inspection report is received, the buyers have an opportunity to look at the report and determine if they still want to move forward with the purchase.

Every buyer has a different set of skills and comfort level with making repairs.  If the home inspection for informational purposes only report reveals minor issues like a light switch needs repaired or that a sink is leaking, then a buyer may feel comfortable taking on those costs either by doing the repairs themselves or by hiring a professional.  However, if flooring needs repaired or there is a foundation concerned, then the same buyer may not see the value in repairing these items.

Does doing a home inspection for informational purposes only mean the home is in poor condition?

No!  Since there are many reasons why a seller may not want or be able to participate in repairing the home, it doesn’t necessarily mean that the home is in poor condition.  For example, a home that is listed as a foreclosure or a short sale is being managed by a bank.  While the bank may not put any money into repairing the home, the house may be in great condition.  Likewise, a home inherited from a relative may be in good condition, the seller just doesn’t have the funds to complete repairs.

In a competitive market, should buyers skip the home inspection (even home inspection for informational purposes) in order to get the house?

In the housing market uproar following 2020, there were a lot of buyers on the market and not as many sellers.  This led to aggressive offers, including agreeing to no home inspections, in order to secure a property.  

I would never advise any buyer to skip a home inspection for the sake of securing a property.  Faulty electrical systems, an AC that is not functioning, a leaky room are all examples of things that a buyer may not notice through a walk through but are things that a home inspector will.

Once the buyers and sellers have signed closing documents, any issues with the home become the buyers’ problems to solve.  When in a competitive market, a home inspection for informational purposes only may be the best route.  It demonstrates to the sellers that the buyers are serious about obtaining the home, but still offers some protection to the buyers if a major issue is uncovered.

Why should buyers agree to a home inspection for informational purposes only?

A home inspection for informational purposes only gives the buyers a fuller picture of the home’s condition through the inspection.  After reviewing the report, the buyers can determine if the amount of work the home needs works with their budget.  If it does, then the buyers can continue with the purchase.  If not, buyers who have completed the home inspection within the guidelines in the contract, are able to void the contract.