After the recent housing crisis, buyers were seeing more and more homes listed “as-is”. This is a strategy that was being used to benefit sellers, but what was not always clear was whether or not this was a good deal for buyers or something that would pose problems later, states Dean Graziosi.
In legal terms, “as-is” is typically used to cover more than the reluctance on the seller’s part to make the necessary repairs that the home may need. It is also used to release the seller from any liability or responsibility for the current condition of the home. This means that the buyer purchases the home without a guarantee that it does not have any major problems.
In the majority of cases, there is a reason why a seller chooses to sell their home in “as-is” condition. This makes it even more important for potential buyers to have a professional inspection performed on the property. You should choose an inspector who is experienced, and will know what to look for during the inspection process. An inspection is a valuable source of information for buyers; it can provide them with information relating to problems with the property and may even show them areas that may become an issue in the near future. If you’re interested in a home listed “as-is” you should always have an inspection performed.
When purchasing a home listed “as-is”, it is important that the buyer understand that repairs on the home will likely not be made. If the home is an REO, which is a home that is owned by a bank, it may be possible to negotiate some type repairs being performed. This is especially true if the repairs will be taking care of any safety issues in the home. Repairs may also be made if there are government mandates that must be followed in order for the home to be sold.
If you’re a buyer who has the ability and funds necessary to make some of the repairs needed, then you may not have a problem purchasing an “as-is” home. However, if you do not have the necessary knowledge or skills, the purchase of an “as-is” home may become rather expensive. Once you finalize the sale of the home, it is your responsibility to maintain and repair, which means that you should only make the decision to purchase after you have thoroughly thought over everything that is involved in the process, states Dean Graziosi. Purchasing an “as-is” home is not a decision that should be rushed into, it should only be done after you have decided it is something that you can financially live with.