If you are shopping for a house to buy and come across one that you like that is being sold "as-is," you may wonder what this means. An as-is house is basically one that is sold in the condition it is currently in, and most as-is homes need some work. The level of work needed is one of the most important factors you should consider before buying a house sold as-is. Here are several things to understand before you buy a house like this.
The seller might not know its condition.
When someone sells a house in the traditional way or as-is, the seller is required to fill out a full-disclosure form which lists all the defects of the home. When a house is being sold as-is, there is a chance the seller does not know or remember what types of problems the house has. For example, if the seller is very old and has lost his or her memory, it may be impossible for the person to reveal problems. In this case, there is also a chance the person selling is a Power of Attorney (POA), and the person is acting on behalf of the senior owner of the house. In this case, the POA would also not know what defects the home has, and this may be why it is being sold as-is.
You can hire a home inspector and use an inspection contingency clause
One thing you might not realize is that you can have an as-is home inspected by a home inspector and include a contingency in your purchase offer, even when the home is being sold as-is. If you want to know what types of problems and defects the home has, this is a smart idea to use. All you must do is write on your offer that the sale is contingent upon the results of the home inspection. If the inspection reveals problems that are more severe than you had imagined or expected, it would give you the right to back out of the deal.
You should spend time calculating the costs to repair the house
Once you have examined the house and receive the report from the home inspector, you should take some time to calculate accurate estimates of how much it would cost to make all the necessary repairs the house needs. By doing this, you can make sure you pay the right price for the home and still be able to afford to make the repairs.
If you are interested in shopping for an as-is home or a home that is a handyman special, talk to a realtor in your city.Share