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Planning to Buy an “As-Is” Home? Read This First!

Planning to Buy an “As-Is” Home? Read This First!

Does the season of renewal have you ready to spring into action on buying a home? If so, you may be scouring available homes for sale to find the one that is just right for you. But, what do you do if a home that seems just right is for sale “as is?”

If a home is for sale “as is,” does that mean that potential buyers should steer clear? Does it mean that a seller knows something about the home that he or she does not want to share? Is it simply a money pit?

Actually, no.

In fact, there are numerous reasons that a seller may decide to list their home “as is,” which means they have no intention of paying for upgrades or repairs and they will not provide credits for any shortcomings that may be unveiled during the closing process. Perhaps a seller is facing financial constraints. Maybe they have relocated and no longer want to be involved with their former home.

Whatever the reasons may be, a home that is listed “as is” does require a bit more buyer knowledge than other listings. Here is what potential buyers should know before placing an offer on an “as is” home:

What You See is What You Will Get

But, you have the right to know exactly what you are seeing! As with any home purchase, the home inspection is imperative when purchasing an “as is” home. Buyers need to find an experienced inspector who will thoroughly search a home to uncover any major issues that may cost a buyer who is ready to go to close. If major repairs are deemed necessary during a home inspection, buyers have the right to walk away from their offer.

You May Need More Money Up Front

Since an “as is” home sale means that a buyer is accepting any faults found in a home inspection, it also means that buyers should enter the sale prepared to spend some additional money up front. They also should know that they do not have to make every single repair as soon as they move into their new home. Of course, they should pay attention to major issues, like electrical problems; but, it is OK to put some home repairs on a more affordable maintenance schedule.

A Home Warranty is a Worthy Investment

There may never be a better time to invest in a home warranty than when you purchase a home ‘as is.” Why not pay a minimal fee up front to have your major home systems covered - particularly when you are entering a home purchase knowing that you probably will need to pay some additional money anyway?

You Will Need an Experienced Real Estate Agent

When you’re looking at an “as is” home, you don’t want to be the only party looking at that type of sale for the first time. It is certainly valuable to bring an experienced real estate agent to the table. They will recognize definite deal breakers, have trusted service professionals at your disposal and, most importantly, put your best interests first. When selecting a real estate agent, make sure you find out how familiar they are with “as is” home purchases.

Buyers, when you see a home listed “as is,” don’t just walk away. Instead, walk into the sale informed and you may just walk away with a great new home!