Fidelity Property Inspections

Buying a home As Is

Buying a home is one of the single largest investments people will make in a lifetime.
Technically, As-Is means the homeowner is selling the home in its existing condition and will
make no repairs or improvements before the sale (or negotiate with the buyer for any credits
toward repairs).

As a buyer you might think that since the sellers aren’t going to make repairs, then there’s really
no need to waste money on a home inspection, right? That might sound reasonable but allow me to share something with you.

I recently performed an inspection for a young couple buying their first home on an “as-is” deal.
The home was completely renovated on the interior and exterior. So, they decided to
forego the inspection. Fortunately for them, their realtor strongly encouraged them to get the
home inspection anyway.

I completed the inspection and found the following major defects:

1. The roof had hail damage (approximately $10-12k)
2. The sewer had a blockage. It didn’t need to be replaced but if it had backed up into the
basement, that could mean a basement remodel. Not to mention the smell.
3. The home was wired with aluminum wiring on most circuits. Aluminum wiring should
not be used on circuits less than 30 amps (rewiring approx. $3-5k)
4. There was foundation movement (repairing foundation cracks and installing a couple of
I-beams approx. $6-10k)
5. It had high radon levels and needed a radon mitigation system installed ($2k)

When buying a home the buyer only has a short window (usually 10 to 15 days) to get an
inspection. After that window closes you’re stuck with any major repair costs. In the example
above I used conservative estimates for the repairs. This inspection cost them around $600
because they added a radon test and sewer camera inspection. As you can see the inspection
easily saved them over $20,000 in repairs. They were able to renegotiate the contract and got the
sellers to pay for the repairs. You might think why wouldn’t the seller just cancel the contract
and sell the home “as-is” to another buyer? After all, maybe the next buyer won’t get an
inspection. That’s because legally a homeowner is required to disclose these problems in the
property condition report. Before the inspection occurred, they may not have known all these
problems were present. After the inspection they often realize they can’t legally list the home
without disclosing the problems to the next buyer, so they often decide to make repairs or lower
the asking price.

Now this example may not be typical, the home you’re buying might not need any major or
expensive repairs. But, I often find defects which may not be expensive but are safety related.
I’ve found fire hazards, disconnected, damaged, or incorrectly installed water heater flues which
can cause carbon monoxide poisoning, and many other things which could potentially place your
family at risk. These types of concerns may not prevent you from buying the home but they are
certainly important to be aware of and correct before a tragedy occurs.

Having an inspection allows you to terminate the contract within the As-Is inspection timeframe
and walk away from the deal.

Here's what hail impacts look like on a roof.

KansasHomeInspector on TikTok

There are several reasons why a realtor should encourage a buyer to get a home inspection on an "as is" home:
1. Building trust: Encouraging a buyer to get a home inspection can demonstrate a realtor's commitment to the buyer's best interests. By providing the buyer with a clear understanding of the property's condition, the realtor can build trust with the buyer and create a positive relationship.
2. Protection for the buyer: A home inspection can reveal any potential issues or problems with the home that may not be immediately visible or known to the buyer. By identifying these issues ahead of time, the buyer can better assess the true cost of purchasing the property and make a more informed decision about whether to proceed with the purchase.
3. Closing the sale: A home inspection can give the buyer a better understanding of the property and help to alleviate any concerns they may have about the purchase. This can help to make the sale process more straightforward, which can lead to a more successful and timely closing.

Building trust with clients is an essential aspect of being a successful realtor, and it can be especially important for generating future referrals.
1. Positive reputation: A realtor who is able to build trust with their clients is more likely to receive positive feedback and recommendations from those clients. This can help to build the realtor's reputation in the community and lead to more business in the future.
2. Repeat business: Trusting and satisfied clients are more likely to return to the same realtor when they need to buy or sell another property. This can lead to a steady stream of repeat business, which can be a significant source of income for a realtor.
3. Referrals: Trusting clients are also more likely to refer their friends and family to a realtor they trust. This can help to generate new business and expand a realtor's client base. As people tend to trust in recommendations from people they know, a realtor's reputation and trustworthiness can have a big impact on the number of referrals they receive.
4. A better experience for the client: Building trust with clients can lead to a better overall experience for the client. A realtor who is trustworthy and reliable can help to alleviate the stress and uncertainty that often come with buying or selling a home, and can help to ensure that the process goes as smoothly as possible.
5. Builds a professional relationship: Building trust with clients helps establish a professional relationship and understanding of their needs and expectations. This can lead to a more personalized and efficient service that can help clients in the long term and future decisions.
Overall, building trust with clients can lead to a variety of benefits for a realtor, including positive reputation, repeat business, referrals, better experience for the client, and a professional relationship that can help in future decisions. As a realtor, it's important to build strong relationships with clients and always prioritize their best interests to keep a positive reputation and secure new business through referrals.