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The as-is value of a house refers to the estimated value of real property without guarantees to it’s current condition in a sale.
This takes into account damages and defects which will incur costs to replace and repair.
This means that even if a property has a market value of $250,000, if the estimated costs to repair the house comes up to $50,000 as estimated by an inspector or contractor, the as-is value will be $200,000.
While this is detrimental towards the sales proceeds eventually collected by the seller, sellers are usually receptive to such devaluations as long as they are fair and ethical.
Part of this is that they understand the predicament that the new home owners would be getting themselves into.
However, shrewd sellers often stage their homes in order to conceal the real actual condition the property is in.
Flippers are known to make minimizing the negative effects of as-if value an art form.
They do this by installing the most economical solutions to major problems so that the very basic standards of the use of the house is met.
As a buyer in doubt, do engage the expertise of a qualified home inspector to assist you in evaluating the true condition of a property.