The as-is concept doesn't mean there is something wrong with the property - it just means the seller isn't willing to pay for repairs. This is extremely common with short sales and foreclosures, and it should be assumed that any property bought in that state is going to be as-is, where-is, as-seen.
Fortunately, buyers are still protected in as-is transactions; they'll typically have a period (10 days or so) in which to do any and all inspections on the property, and if they decide there is a problem too large to overcome, they have the option to cancel the contract and receive a return of the earnest money deposit. The only thing at risk financially is the cost of the inspector - but make sure you have a good one so that he can catch problems that aren't obvious.
Re/Max Alliance Group