What Every Buyer Should Know About “As-Is” Home Sales | White Knight

What Every Buyer Should Know About “As-Is” Home Sales

by Fidelity National Home Warranty

Today’s real estate market means homes are going for top dollar, above listing price in many cases, and selling fast. For buyers, this means you’re not likely to find many “deals” out there on the market. That is unless you update your search criteria to include “as is” properties. However, what does this actually mean in a home purchase? After all, this isn’t a snagged sweater you’re grabbing from a bargain bin; a home is probably one of the largest investments you’ll ever make. So, what does “as is” really mean when it comes to property? Here’s what every buyer should know about “as-is” home sales.

What Exactly is an “As-Is” Home?

The term “as is” usually refers to a buyer purchasing an item in its current condition. It also means that the buyer is willing to accept this item’s faults and all. Yes, even faults that might not be apparent to the buyer. However, it’s not all bad news.

Why Sell a Property “As-Is?”

According to real estate agent, Katie Messenger of Bello Dimora Real Estate Network, “Not all as-is properties are distressed,” Financial concerns are a common reason that sellers choose to list a home as-is, removing them from the responsibility of repairs and the sometimes-costly fixes from home inspections. Or sometimes, the seller lives elsewhere and doesn’t want to deal with managing the repairs before selling. Other times the home is in good condition, and it’s an estate, so the executor may just want to sell the home and move on with as little hassle as possible,” Messenger says.

Another reason to sell “as-is” is if the home is in foreclosure. The previous owners may not have left the property in a desirable condition. If that’s the case, the bank that owns the house may not want to make costly improvements on the property.

Get the Home Inspection

When buying an “as-is” house, it’s crucial you have a professional inspector assess the property. If a costly repair is revealed during a home inspection, you still have the opportunity to walk away, and with minimal costs. BPG Inspections offers a great home inspection checklist to help you make sure you’re getting the thorough inspection your investment deserves.

According to quickenloans.com, a buyer “won’t have as many financing options buying a property as-is. lenders don’t want to finance a property in bad condition. This is risky for them. If the condition worsens to the point where the property loses considerable value or is unlivable, the mortgagee may not want to pay back the loan.

Buying “As-Is” Property is Not For Everyone

If you love fixing and flipping houses, buying an “as-is” home is a good bet. If you’re familiar with home improvement projects and are comfortable making major repairs, also good. But remember, “as-is” properties are not for everyone