Looking for a new home can be a real chore but once you find the one you love the first step is over – even if it is listed “as-is.”
Yes, finally, after looking for several months you stumble on a big old ranch-style home on a few acres and instantly say “this is it.”
Then you walk in and see several things that look like they need to be repaired and hesitate.
What to do, what to do?
Home Inspection Time
Think about getting a home inspection to ease your mind and help you to decide if you want to continue with the purchase, that’s the most logical thing. Finding defects is just one reason why you should get a home inspection if you're buying an “as-is” home.
As you contemplate why you should get a home inspection if you're buying an “as-is” home, start looking for the right home inspection company that can do the job right.
And since you’ve just learned it is indeed listed “as-is” a home inspection should be able to answer whether you opt to buy the home or simply walk away.
What Is an “as-is?"
What is an “as-is” home and why should you get a home inspection if you’re buying an “as-is home?” Like many homebuyers – seasoned or first-time buyers – many of these questions are probably running through your head. That’s not uncommon.
When a home is listed “as-is” it means when and if the home is purchased, the buyer will get exactly as it is, with any structural or cosmetic defects included. Therefore, this is key to why you should get a home inspection if you're buying an “as-is” home.
It also means the seller won't bend on the list price and will not honor any negotiations on repairs for the home. It's a “what you see is definitely what you get” home purchase.
Bear in mind there are “as-is” clauses within the purchase contract of all homes and, depending on the various type of homes being sold “as-is” the clause may have different stipulations.
Just another reason why you should get a home inspection if you're buying an “as-is” home.
More on “as-is” Clauses and Seller Disclosures
In a regular sale, there will be an “as-is” clause within the purchasing contract. This limits liability for the seller, if (and only if) they provide disclosures about the property.
If the buyer purchases the home, but the seller did not disclose major problems, the buyer could have a case against the seller even with an “as-is” clause.
Discuss this with your Realtor if you have questions about this type of situation and as you contemplate why to get a home inspection if you're buying an “as-is” home.
More Clauses
If you’re in contract on an “as-is” property, does it mean you are bound to buy it, regardless of the issues and problems? No, because while the seller is covered by the ‘as-is’ clause, the buyer is covered by a home inspection contingency.
For instance, when there is a listing stating it is “as-is” this lets potential buyers know they should do a home inspection before purchasing the house.
Every buyer should heed this advice when buying a home but getting an inspection on an “as-is” property is a must and why to always consider a home inspection for an “as-is” home.
You won't be able to this to reduce the price or have the seller repair the defects the inspection reveals but you'll know what repairs are needed should you decide to buy.
Again, and to stress in general, purchasing a house “as-is” means that there are no guarantees from the seller on the home’s physical condition; you’re simply accepting any faults the home might have. Keep this in mind as you ask yourself why to get a home inspection if you're buying an “as-is” home?
However, just because it says “as-is” this should not turn you off completely especially if you like the home and are considering why to get a home inspection if you're buying an “as-is” home.
Sometimes financial concerns are one reason why a seller opts to list a home “as-is” because it removes them from the responsibility of repairs and perhaps costly fixes from home inspections.
Or maybe, the seller lives somewhere else and doesn’t want to deal with the repairs before selling.
If you’re wondering if buying a house “as-is” is worth it, just make sure you’re getting a good deal and not a money pit.
In the end, consider some of these tips and what you need to know before buying a home “as-is.”
Insist on a Home Inspection
Again, it is always a good idea as a home buyer to get a home inspection before buying a home. A home inspection is a key factor as it could very well offer disclosures a Realtor may not be able to provide the buyer with and why to get a home inspection if you're buying an “as-is” home.
Even with a home inspection, the responsibility to disclose any known issues remains with the seller. Of course, obvious problems should be clear in the home inspection; however, sellers must acknowledge any known hidden problems and issues in the property disclosure form. Therefore, this is why you want to get a home inspection if you're buying an “as-is” home.
If an expensive repair is discovered during the home inspection process – hence why to get a home inspection to begin with – and you're buying an “as-is” home that’s more expensive than what the seller originally disclosed, the buyer has the option to walk away.
Do Negotiate a Home Warranty
A home warranty is a service contract covering repairs or replacements of important home system components and appliances that are typically showing signs of wear and tear, something a home inspector can clarify as you decide on why get a home inspection if you're buying an “as-is” home.
Getting a home warranty should be on the list when purchasing an “as-is” home’s condition, as it ensures the home buyer peace of mind rather than worrying over expensive repairs and helps decide why to get a home inspection if you're buying an “as-is” home.
Hire an Experienced Real Estate Agent
If you opt for an “as-is” home make sure you have a top-notch real estate agent to explain the “as-is” purchase contract so you completely understand purchasing an “as-is” property. They will most likely agree on why to get a home inspection if you're buying an “as-is” home.
A knowledgeable agent should be able to assist homebuyers through the house-hunting process, avoiding any duds, and tell you why getting a home inspection if you're buying an “as-is” home is imperative.
An experienced agent should also be able to recommend service providers to obtain the correct mortgage product and do home repairs, too.
Additionally, a responsible real estate agent can also help determine the best offer for an “as-is” property, including repair costs the buyer will be responsible for.
First-Time Home Buyer
If you are a first-time homebuyer, buying an “as-is” home might not be the best idea since “as-is” properties may not qualify for government-insured loans such as FHA or VA.
As you’re searching through listings online or with your Realtor, you may see stipulations on certain houses that say they are considered an “as-is” property. Another reason why to get a home inspection if you're buying an “as-is” home.
Run or Stay?
For some folks, these words are enough to make them skip over these listings and move on. However, for others, they see it as something they might very well be interested in and be able to afford. It never hurts to look and always remember to hire a qualified home inspector to check over the “as-is” property before signing on the dotted line.
Either way, remember buying a house under any circumstance is a lengthy process but hopefully, one that ends in a positive sale and you find what you’ve been hunting for all these months.
**The information in this article is provided for general information only and does not constitute professional advice.
Do your research and/or seek the advice of qualified professionals about your specific circumstances before you act.