The U.S. residential real estate market remains a challenging environment for prospective buyers in 2025. While conditions are cooling somewhat and inventory is growing, it remains a hot seller’s market in most parts of the country. If you’re shopping for homes, you may see properties listed for sale “as-is” in response to limited inventory.

While that might suggest the advantage is all on the seller’s side, an as-is home can be a boon to homebuyers, too, though the caveats can be considerable. Here are some of the key pros and cons to consider.

What does selling a home as-is mean?

When you buy a house as-is, you’re getting a property that typically needs repairs and updates, with the asking price reflecting the current condition. Don’t ask for bargaining, changes or fixes: What you see is what you get.

Although the home may not be in perfect condition, the level of fixes and improvements needed can vary. An as-is home may have minor cosmetic issues, such as chipped paint or an appliance that needs replacement. However, in some cases, more serious issues may arise, such as water leaks, roof damage or mold.

An “as-is” home isn’t necessarily the same as a “fixer-upper,” though there’s overlap between the two. “Fixer-uppers are properties that need significant repairs and renovations, while as-is homes may just need some cosmetic updates or minor repairs,” says Rinal Patel, co-founder of We Buy Philly Home in Philadelphia.

Why do sellers offer homes as-is?

Sellers offer homes as-is for a variety of reasons. For instance, the home may have recently gone through a foreclosure, or the previous owner may have died and their heirs are attempting to sell it to avoid the cost and time involved. The current owner may also need to sell quickly or want to avoid negotiations.

Why buy a house as-is?

No matter the seller’s motives, as-is home sales can offer several advantages for the buyer.

Cheaper sale price

As-is homes are priced to sell. And since the current owner is unlikely to make repairs or negotiate, the buyer can usually obtain it for a bargain price. “This could save you money in the long run, especially if the repairs aren’t too significant,” says Patel. If they are renovations you can DIY, even better. And of course, paying less upfront could potentially mean more appreciation in your pocket if/when you come to sell the home.

Faster transaction

When you’re buying a home as-is, you can usually complete the transaction faster than usual. There are no prolonged negotiations over the purchase agreement or contract details. Since “the buyer knows what they are getting, and so does the seller in terms of what’s expected of them, [you] get a quick sale most of the time and an expedited closing timeline,” says Robert J. Fischer, a real estate agent in the Greater Austin, Texas area.

Less competition from other buyers

Many buyers shy away from as-is homes, assuming they’ll be serious fixer-uppers at worst, or dated and in need of updates at best. So you’re less likely to get into a bidding war with other prospective buyers or be knocked out of the running by a more aggressive offer at the last minute.

More money for remodeling

It’s rare for a home not to require some customization. But if you pay top-dollar for a new or fully up-to-date property, you may not have the funds to make renovations or other changes.

With an as-is home sale, you can use the savings from the lower sale price to tailor the home to your tastes while also building equity.

Drawbacks to buying a house as-is

While there are advantages, there are also disadvantages to buying a home as-is.

The home might have major hidden problems

The biggest concern is that the home will require significantly more work than you anticipated. That could mean your bargain purchase is now a costly problem you must pay to fix as its new owner. Even if a home inspection uncovers issues before you close, you still might be stuck going through with the deal, depending on what those issues are (more on that later).

Learn more: 5 home inspection mistakes to avoid at all costs

Financing could be a challenge

Financing an as-is home purchase can be tricky. If the property turns out to have serious structural problems that affect health or safety, your initial plans for financing may fall through.

“If the buyer is getting a mortgage through FHA or VA and even some conventional products, certain repairs must be completed prior to closing,” says Kristen Conti, broker-owner at Peacock Premier Properties in Englewood, Florida.

You could be caught between a rock and a hard place if the lender-mandated inspection reveals such issues, the seller won’t fix them, and you can’t obtain the loan without them. For this reason, many as-is homebuyers opt to pay with cash or hard money loans, rather than traditional mortgage financing.

Sellers are typically inflexible

As-is home sellers tend not to be open to contingencies, counter-offers or contract negotiations — that’s the whole point of offering the house as-is. You can always try, of course, but don’t count on much wiggle room or flexibility.

Tips for buying a home in as-is condition

Bear these suggestions in mind before embarking on an as-is purchase.

Ask questions

Even with an as-is home sale, you can ask questions, including why the house is being sold as-is: It’s an estate sale, the owners need funds fast to buy another home, they just don’t want the work of making a place move-in ready, etc. Perhaps your real estate agent could get the skinny from the seller’s agent. “This could provide some insight into the home’s condition and whether or not the repairs needed are significant,” says Patel.

Don’t disregard disclosures

In most states, “the seller must disclose anything they know is wrong with the home, unless the property is a rental or an inheritance,” says Jimmy Hughes, a broker with JMR Realty in Edmond, Oklahoma. Selling a home as-is doesn’t relieve the homeowner of this legal obligation, especially when it comes to serious issues.

According to Tomas Satas, founder and CEO of Windy City HomeBuyer, “Disclosure laws usually cover all major systems of the home, [including] infestations of any kind, the roof, the foundation and the presence of toxic substances such as lead paint, asbestos or radon.”

Verify with a local real estate agent which codes and health and safety disclosures are required in the state where the property is located. If you do discover problems with the home, you could ask the seller to address them, the as-is status notwithstanding (or walk away from the deal).

Know what to put in the contract

“A home purchase contract should clearly state which items are included in the sale of the property as-is,” including furnishings, fixtures and appliances, says Boyd Rudy, associate broker at Boyd Rudy’s MiReloTeam. “Including a complete and accurate list of items in the contract also helps to protect both parties in the event that something is damaged or goes missing after the sale is final.”

Get a home inspection and/or contractor evaluation

Even if your lender doesn’t require one, a home inspection is something all our expert sources agree is a necessity when buying a home as-is. A home inspection is more thorough, but costs more, while a contractor’s evaluation is cheaper but might not be as comprehensive.

Although as-is sellers likely won’t be enthusiastic to oblige, insist on making a home inspection part of a non-negotiable contingency clause. This way, you can back out of the contract if the inspector reveals major problems, like a cracked foundation. Although you’ll be out the cost of the inspection — which averages $343 nationally — it’s worth it if it allows you to avoid any expensive renovations.

Ask for a home warranty

There’s some debate over whether a home warranty is worth it, or even a possibility, in an as-is home sale. “Buyers can ask for a home warranty, but on as-is homes, it’s typically assumed this will not be included,” says Hughes. Still, it doesn’t hurt to ask the seller to purchase one for you. Alternatively, there are other ways to obtain coverage for appliances, such as using a credit card with warranty perks.