Are you looking at buying a house that is being sold “As-Is”?
Selling a home “as-is” a strategy that is beneficial to sellers and can either be a good deal or a nightmare for buyers. When buying a house as-is, the seller is release from all minor and major problems whether they are disclosed or not.
It is important to hire a professional Property Inspector to try and disclose any defects the house may have. While you are not guaranteed the inspector will find everything, at least knowing what majorly apparent problems there are will help with your decision.
If the home is real estate owned (REO), meaning owned by a bank after a foreclosure, there is sometimes more room to have repairs done even if they are selling the house “as-is”. You should always ask. If the home is being sold by the owner whose mortgage balance exceeds the property value, also known as a short sale, this seller will be less reluctant to pay for the repairs that will only benefit the buyer.
Weigh out the price of the house and the cost of the repairs that must be done which were found in the inspection report. Prioritizing which repairs are most important will help you decide if the deal is realistic, particularly if the price of the home is right.
In some cases, “as-is” homes can be a great deal and the buyer should keep in mind that there might be repair costs that will have to be dealt with up front. Keeping that in mind will help you decide if the cost of the repairs will still be worth it based on the price of the house.
