When you are looking through house listings there is a good chance that you will see several houses that are being sold “As Is.” Before you move forward in considering buying a house that is being sold “As Is” you need to understand what it means and how it will affect you.
When a home is listed “As Is” it means that you will be buying the house in the condition that it is currently in. The seller will not do any work to make repairs prior to closing.
Houses that are listed this way usually have work that needs to be done. Houses that are in good condition are rarely sold “As Is.” In most cases, “As Is” houses have been foreclosed on by the lender.
When a house is being sold “As (s” it usually means that it is going to come with a lower price tag. Sellers that are unwilling to complete the work that the house needs done understand that they are not going to be able to sell it for top dollar.
If you are not afraid of buying a fixer upper this can be a good way to get a solid deal on a house.
The obvious con of buying a house “As Is” is that all of the responsibility of fixing up the house will fall on your shoulders and your pocket book. Even if you have an inspection completed before closing on the house it can be hard to tell exactly what all the problems are with the house.
Chances are good that once you start making repairs on a house that needs work you will often uncover additional problems.
Should You Buy the House?
You may be having a hard time deciding if you should buy a house that is being sold “As Is.” You could be getting a great deal, but you could also be taking on more risk then you are ready to.
If you are interested in the home you should only proceed with the deal if you are going to have a full home inspection completed. An inspector can help pinpoint problems that the house has so you know what to expect.
Once you have the full report of what you will need to do you can work on calculating estimates of how much it will cost to do the work. You can then use this information to decide how much you are willing to pay for the house.
If you can get the house for the price you want, then you should proceed with confidence. However, if you are uneasy about how much you will be spending on a potential fixer upper, it might be smarter to pass.
Do not allow the low price tag to convince you to go against your instincts. Often times the amount of work that is needed will eat up the money that you thought you were saving on the house when you purchased it. However, if you have to pass on this house, don’t be afraid to look at other “As Is” listings.