In Hawaii real estate, an as-is addendum is a common contract provision that can significantly impact both buyers and sellers. Whether you are purchasing or selling a home on Oahu, understanding how as-is clauses work is crucial to protecting your interests.

An as-is addendum means the seller is offering the property in its current condition and is not obligated to make repairs or improvements before closing. This does not mean the property has problems. Many sellers use as-is clauses simply because they want a straightforward transaction without the back-and-forth of repair negotiations.

For buyers, purchasing a property as-is does not mean you waive your right to a home inspection. You can and should still conduct a thorough inspection to understand the property's condition. What changes is your ability to negotiate repairs based on the inspection findings. In an as-is sale, you typically accept the property's condition or walk away using your inspection contingency.

For sellers, an as-is addendum does not eliminate your disclosure obligations. You are still legally required to complete the Hawaii Seller's Real Property Disclosure Statement and honestly disclose known material defects. The as-is clause simply means you are not agreeing to fix anything after the buyer's inspection.

As-is sales are common in several situations on Oahu. Estate sales, bank-owned properties, investor flips, and properties being sold by owners relocating off-island frequently use as-is addendums. In competitive markets, buyers may also offer to purchase as-is to make their offer more attractive to sellers.

Before agreeing to an as-is purchase, make sure you have a realistic understanding of potential repair costs. Get estimates for any major concerns identified during your inspection. Factor these costs into your offer price so you are not surprised after closing.

Kristy and Austin Home Group guides buyers and sellers through as-is transactions every day. We help our clients understand the implications and negotiate terms that work for everyone involved.