You’ve been searching for a new house for months now. You’ve browsed dozens upon dozens of online listings, talked to a few real estate agents, and toured numerous open houses. One day, you happen to stumble on what looks like your dream home. It has the number of bedrooms you need, a couple of bathrooms, and a huge kitchen. There is a nice-sized backyard and the neighborhood is a safe one.
However, you realize that this particular house is being sold “as is.” All of a sudden, you aren’t sure whether you should purchase it or not. You realize that the home will be sold in its current condition, meaning the current occupant has no plans to repair or improve anything that might be wrong in the house. Many sellers put their houses up “as-is’ because they simply cannot afford to make any repairs or improvements.
It’s important to understand exactly what you are getting into if you choose to buy a home in this condition. In some cases, it can be an amazing bargain. But you must remember that you could very well be dealing with a home that needs extensive updates and repairs. If you go into the purchase blind, it could lead to disastrous results. Taking on a mortgage or shelling out cash for a home is a very stressful event no matter what, and purchasing a home “as is” can make things pretty stressful.
Homes that are marked “as is” will generally sell for a much lower price than other houses within the same geographical area. Whether it is a good idea will depend on your knowledge of home repairs and upgrades. If you have a lot of experience in fixing things around the house, then an “as is” home could be a great investment. You may also get the house in this type of condition because the owner died and the family is just trying to sell it as quickly as they can. You may even get a great deal on the house this way.
Experts advise potential buyers to have the home inspected before deciding whether they should buy a home “as is.” While you likely won’t see everything that could be wrong, a home inspection will give you a better idea of what you will be getting into. You could be buying a home that will become a major money pit due to repairs and upgrades. A home inspection will help you determine whether the price is worth the aggravation.
The bottom line is this- purchasing a home “as is” will usually come with some risks. However, you may have the knowledge and skills that could make the investment worthwhile. Whatever you do, don’t leap to put a bid in with your realtor when you come across a house being sold this way. Do your research and find out what you will need to do in terms of repair work if you were to purchase the home. While it can be a risk, it could also be a steal if you know what you are doing.