Buying As-Is? You Still Need a Home Inspection
There are a couple of key things to know when it comes to buying a house “as is”.
“As is” houses may seem like the best deals on the market since they’re often the lowest-priced houses for sale. The offer for a home at dirt cheap prices may be tantalizing, but buyers must exercise caution before sealing the deal. A home inspection, though not required, is a necessary step to determine the true value of one of these bargain-priced houses. Here are a few of the things to watch out for if you’re scoping out a home “as is”.
Definition of “As Is” in Home Listings
A house listed “as is” is one that the owner will not repair or renovate before selling. For these homes, what you see is truly what you get. In non-“as is” homes, buyers will typically make a few repairs to the home after having it inspected, and both buyer and seller agree on the final price of the home following the cost of repairs to the house.
However, buying a house “as is” means to purchase one in the condition it’s sold in. You can send home inspectors to other homes, but the seller of an “as is” house has no obligation to change or alter anything for you. They also do not have to negotiate repairs.
The Real Price of the “As Is” House
For buyers considering purchasing a home “as is”, it is extremely important to weigh in on any financial obligations before sealing the deal. Once the house is yours, so are its repairs, and additional repairs may be far out of your price range. Only if a buyer has fallen in love with a house and can commit to the process of repairing it, should he or she attempt to buy. The seller may not have time for repairs and wants to sell their property as fast as possible, so buyers may not have as much time to decide, but stop to analyze the true cost with repairs before making the leap.
Should I Still Inspect the Home?
The short answer is yes. Buyers may think they’re getting their “as is” house at a bargain price, but they’ll still need to hire inspectors to get a home inspection, and set to work on repairs if any imperfections are found.
Can you get an inspection before buying the home? Yes! The safest option before purchasing an “as is” home is to conduct an inspection before buying. That way, you can gauge accurately how much it will cost for repairs.
Getting a Loan for the House
It can be a challenge for “as is” homes to get a loan to pay for them, since houses are collateral according to banks. Banks cannot tell whether a home in uncertain conditions is grounds to take out a loan, and buyers risk getting rejected. Factor in how much you’ll need to pay on your own, since banks often cannot guarantee loans to these types of houses.
Accepting the Risks Involved
When there’s a defect to the property, sellers often list their houses “as is” and lower the price to sweeten the deal. The downside of the purchase is repairing it yourself, and the only way to know an “as is” home’s true value prior to purchase is to get a home inspection and add up the cost of repairs to the total price of the home. You may bump into unforeseen costs along the way, but don’t be surprised – any buyer of an “as is” home accepts the risks involved, and only you can determine whether the home is worth the time and effort you’ll put into it.
1st Choice Inspections is here to inspect properties on short notice. 1st Choice’s quality inspectors are trained to identify any defects and damages to the home and report them in precise detail. 1st Choice Inspections can help determine if the house you’re buying “as is” is worth the money. Connect with 1st Choice and find out if your house is move-in ready or needs significant repair right away.