What You Should Know If Buying A House As-Is
Posted on: 21 November 2019Share
Scrolling through residential real estate listings is the best way to look for homes that are for sale, and as you do this, you are likely to encounter homes that state they are for sale as-is. If you encounter a listing that says this and if you love the house, there are several things you should know before you make an offer on it.
The definition of an as-is property listing
When a property is listed with the words "as-is," it means that the person selling the house is selling it just as it is and is not willing to make any improvements to the property. The house comes as you see it, problems and all, and you must be willing to take the house in this exact condition.
Why homeowners sell as-is
There are several reasons that homeowners will choose to sell their homes as-is, but a common one is that a homeowner simply does not want to invest any money into the home. Maybe this homeowner already invested a lot of money and no longer wants to, or maybe the homeowner does not have any time or money to put into the house. In any case, any homeowner can decide to list a house and sell it as-is, but homeowners must realize that when they do this, it can create challenges with trying to sell it.
The risks you take buying a house like this
As the person buying an as-is house, you might encounter some risks and challenges. One thing to realize is that you cannot add any contingencies to the deal that require the seller to do things. For example, you cannot say that the stair railing is not up to code and then ask the seller to fix it. This is not an option when buying as-is. Instead, you must take possession of the house just as it is.
You can reduce your risks with a deal like this, though, and one way is to get the home inspected. You will likely find out there are issues with the house when you do this, but at least you would be able to know the full extent of the issues before following through with buying the house.
There is nothing wrong with buying an as-is house as long as you understand what this means and take the time to investigate and inspect the entire house thoroughly. To find homes for sale, talk to a local agent.