What is the meaning of “as-is” and “zero contingent”?

“As-is” means a buyer is agreeing to accept the property from the seller in its current condition without the seller having any obligation to make corrections or repairs. Although the purchase contract typically used in California is an as-is contract, sellers are almost always required to have the water heater properly strapped and have smoke and carbon monoxide detectors installed in correct locations. Sellers are also required to provide disclosures to a buyer in a transaction, though disclosure requirements can be different in some instances.
 
“Zero contingent” means the buyer is willing to take the risk of purchasing the property even if they have difficulty obtaining financing, the appraisal comes in below the purchase price, or if the buyer discovers physical deficiencies in the property during the escrow period. The “risk” is the initial deposit (earnest money) the buyer submits to the escrow holder (typically 3% of the purchase price). If the buyer defaults in the contract, the buyer may have to forfeit their deposit to the seller in certain circumstances. Why would a buyer take such risk? To strengthen their offer against many other buyers.