Many homes, especially bank-owned properties, are advertised as to be sold "as-is." What does this mean? A home being sold in as-is condition is one that will transfer ownership in its current condition, and the seller is stating up front that no repairs will be made to the property. The home could be in good condition, or it could have major structural or mechanical components in need of repair or replacement.
In Texas, buyers can present a purchase offer to a seller that includes an "option period" to evaluate the condition of the property. This option provides the buyer a prescribed period of time, in exchange for monetary consideration, to terminate the contract for any reason or no reason.
During this option period, an inspection can be performed at the expense of the buyer. In an as-is purchase, the inspection should be considered as an evaluation to see if the buyer wants to move forward with the purchase or terminate, not to re-negotiate the terms of the contract. However, if specific repairs are identified, the parties can negotiate to amend the contract to specify seller-paid repairs of the items before closing, a price adjustment, or buyer termination of the contract. Some sellers will agree to make repairs prior to closing, especially if they are lender-required repairs, and other sellers will stick to the "as-is" condition, particularly banks. Banks will usually include contract addenda at the time of acceptance that address whether repair requests will be considered.
It's important to have the guidance and advice of a REALTOR during your home search and purchase. I cannot emphasize enough the need for a home inspection and an option period to evaluate the condition of any property. A home (foreclosures, particularly) might be listed at a bargain price, but it isn't a wise investment if the repair costs after the purchase are astronomical.
As always, seek the advice of an attorney for legal questions.
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