Should I buy a home as is?

Any offer you make on a property should contain a contingency period for inspections. This allows the buyer to investigate the condition of the home, read through the seller's disclosures, hire professional inspectors, and find out any city or county ordinances that may affect their plans for the home within a fixed timeframe (usually 10 to 14 days). Buying a home as-is does not automatically remove the investigation opportunity. To any buyer I would recommend a thorough gambit of inspections be done before removing the inspection contingency and proceeding with the purchase.

Before you make an as-is offer, ask the seller for existing reports, a copy of the Transfer Disclosure Statement, and do a thorough walk-through of the home with an informed real estate agent or contractor friend to get a feel for what you're getting into. Inspection costs can easily exceed $500, though consider that is a small price to pay in today's real estate market compared to the purchase price.

If you do want to make an as-is offer you should know where to price it based off the home's condition and the current market, since rarely will a seller negotiate repairs after the offer is in place. If you are aware of a particular flaw before making the offer (ie, leaking hot water heater), you can make an as-is offer with an exception, specifically requesting a new hot water heater be installed before close of escrow.

You can also request the seller to provide a home warranty (approx. $350 for 1 year) that acts as an insurance policy which will cover some aspects of home repairs when the unexpected happens.