What Does “As Is” Actually Mean When Buying a Michigan Home?
You see a home you like, but the listing remarks say:
“PROPERTY SOLD AS IS.”
That sounds serious. But here is something many Michigan buyers and sellers may not realize:
Your purchase agreement may already say you are buying the property “AS IS.”
Wait, Aren't Most Home Sales Already “As Is”?
Take a look at the Michigan Realtors Purchase Agreement.
Under Condition of Property, the form states that the buyer accepts the property in its “AS IS present condition, subject to any inspection contingencies below.”
The same section goes on to say that the property is to remain in substantially the same condition until possession, except for ordinary wear and tear, and addresses removal of trash and leaving the property broom clean.
That first sentence is important:
AS IS present condition, subject to any inspection contingencies below.
In other words, “as is” and “no inspection” are not automatically the same thing.
A buyer can agree to purchase a home in its present condition while still having an inspection contingency in the purchase agreement.
So Why Do Listings Specifically Say “AS IS”?
This is where the practical meaning becomes important.
When you see “AS IS” emphasized in the MLS remarks, the seller or listing agent is often trying to communicate something beyond the standard contract language.
Usually, the message is something along the lines of:
The seller does not intend to make repairs or improvements to the property.
That might happen with:
• An estate sale
• An inherited property
• A home that needs updating
• An investment property
• A seller who doesn't want to make repairs before moving
• A property where the condition is reflected in the asking price
But the MLS remarks themselves do not replace the purchase agreement.
Can You Still Inspect an “As Is” House?
Potentially, yes.
Your actual rights depend on the purchase agreement you sign.
The Michigan Realtors form itself demonstrates the distinction by referring to the property's as is condition subject to inspection contingencies.
An inspection can still be extremely valuable even when a seller has made it clear that they don't intend to repair anything.
The inspection helps answer a different question:
Do I still want to buy this house, in this condition, at this price?
“As Is” Doesn't Mean “Don't Ask Questions”
It also shouldn't be interpreted as permission for a seller to knowingly conceal defects. Michigan has seller disclosure requirements that apply to many residential transactions, although certain transfers are exempt.
The better approach is simple:
Don't make assumptions based on the words “AS IS” in the listing remarks.
Read the purchase agreement.
Read the Seller's Disclosure Statement when one is required.
Understand your inspection contingency.
Then decide whether the property's actual condition makes sense for you.
You can read more common Michigan buying questions in my Buyer and Seller FAQ.
If you're considering an as is property in Southeast Michigan and want another set of eyes on what you're buying, visit SoldByCaleb.com to get in touch.
The words “AS IS” shouldn't automatically scare you away. They should make you ask what the seller means and what your purchase agreement actually says.
This article provides general real estate information and is not legal advice. Contract language and the circumstances of each transaction can differ.