AS IS means without guarantees as to the condition. The premises are accepted by a buyer or tenant as they are, including physical defects without any warranties. I've provided a sample copy of the Arizona Association of Realtors AS-IS form on the link below. Always get an inspection done even when you are buying an "AS IS" property.
Bank Owned Properties and many Short Sales are sold with this condition in the contract. However, it has been my experience that "AS IS" may mean a Maybe on repair items on Bank Owned Properties, particularly if they become contingencies on the Buyer obtaining financing.
The Arizona Contract provides for certain items that the Seller must have in working order at closing. By adding an "AS IS" clause to the contract, the Seller is refusing to repair those warranted and/or any other repairs that the property may need.
It does not mean they can not disclose problems they know it has.
It could also mean it is a foreclosure.
p.s.Sometimes the listing says as-is then problems are brought to the sellers attention and they fix them. Sometimes the person is already losing money or breaking even and refuse to spend more.
There are 2 important things to note. When buying a bank owned, soem banks will not allow an inspection contingincy, other banks will allow one but it is for your information purposes only, they will not renegotiate the price or make any repairs if the inspectrion finds anything.
However if you find a hidden defect, meaning somthing you can not see with your naked eye such as the water test fails, septic test fails or you find termites then by all means you can ask the bank or seller to make repairs even though it is sold as is. Most times they will make the repair as if they dont, they will lose you at a buyr an dthen have to lower teh price substantially to attract a cash buyer so the repair adds value to their property.
Things not included that you would have been able to see are missing handrails, peeling paint, water stains or leaks on the ceiling and making sure teh water works in teh house with no leaks and teh furnace turns on and works.
When buying a property inspect the house for yourself using your eyes and your agents eyes from top to bottom, most things can be seen and should be addressed in your initial offer.
good luck with your purchase
Also if you're not paying ALL CASH, you may have problems with financing depending on what repairs are needed. You can get an FHA 203K Simplified to finance the repairs that will be made after closing.
Find a Realtor that will work for you and help you find the best deal.
While "as is" means that you're buying the house in its present condition--that the seller isn't going to make any repairs--it doesn't leave you unprotected. In fact, frankly, you're as protected as if you were buying a house without it being "as is."
For example, the seller still has to disclose anything he's aware of. And that also means that you can have the home inspected. And it means that your contract may (and should) provide that the contract is contingent on a satisfactory home inspection. So you do--and can do--everything that you'd do with any home purchase. The only thing you know for sure is that if you discover some problem, the seller is saying they're not going to fix it.
So you make an offer that reflects any apparent defects or problems. And you probably make the offer somewhat lower than that (somewhat lower than if it weren't being sold "as is") to take into account problems that you might find that the seller has told you up front that he's not going to fix. (Hey, in some ways that's better than a traditional sale. In a traditional sale, you don't know whether the seller's going to be willing to fix the problems. At this way, you know that going in.)
You have the home inspected. And you bring in any other experts as necessary (structural engineer, for instance), just as you would with a traditional purchase.
You evaluate what the inspections have found, and you decide whether or not to proceed with the purchase.
Buyers sometimes assume that sellers of "as is" properties are trying to hide something. Sometimes, but sometimes not. Banks, for instance, sell foreclosures "as is" because they don't want the hassle of getting into repairs. Lots of times estate sales are of "as is" properties because the heirs don't have the money the money to put into possible repairs; they just want to sell the house. Investors often buy houses "as is" because it strengthens their offers. The sellers know that they're not going to be nickeled and dimed with all sorts of repairs.
So, just be careful going in and protect yourself the same way you should in any purchase. Your Realtor can help with the specific language and contract provisions.
Hope that helps.
You are correctamundo! What type of loan are you using?
What exactly are the needed 'corrections/repairs'?
How good is your mortgage lender?
How good is your buyer's agent?
But as is often the case with real estate transactions, the actual outcome of the transaction is dependent on MANY variables. If you've not secured the services of an experienced, competent, full time Buyer's Agent/Realtor, then you would be wise to do so right away.
All the best!