With more foreclosure and as-is property coming on the market everyday - it is important for consumers / clients  to know what "as is" really means.  It means that the seller must disclose all known defects - but that they aren't expecting to pay for any repairs.  (However - never rule out that you can STILL negotiate to get credits from a home inspection -- it never hurts to ask.  And if there is "no reimbursement" and that would be a deal killer for the buyer - just have them walk away from the transaction.) 

 With "as is" - the seller isn't making any warranty or representation about the condition of the property.

As-is listings have their positives and negatives for a seller.   The negatives are - many buyers wonder "what is hidden... what aren't they telling me about?"   -- and they get cold feet.  Some sellers do indeed thing that they can get away with selling a home which has a hidden defect that the buyer or a professional inspector won't discover.

They also may sell "as is" because.... 

They don't have the money to repair the disclosed defects.  

They may not have lived in the property (perhaps it was an investment property) and they aren't aware of it's problems.

The seller doesn't want the inconvenience and hassle of making repairs.

 Buyers can protect themselves when purchasing as-is properties by hiring a very very good home inspector - that is at a minimum ASHI and/or NAHI certified.  You might want to review sample reports from various inspectors - to compare the differences.  A good agent will refer you to an agressive inspector -- not one who sugar coats things - so as to not "blow the deal" for the agent.

Though a home warrantee can be helpful - they won't cover pre-existing conditions.