Buying a home “As-Is” can be risky but in this market, it could be a better option for some buyers especially when housing supply is low.
Buying “As-Is” means that you will purchase the home exactly the way it is and that the Seller will not be making nor be responsible for any improvements or repairs before or after closing. What you see is what you get but what you need to understand is what you do not see is also what you get. It is a very wise move to have a home inspection completed in this case so that you know exactly what repairs, if any, will be required and what that would cost you. You can then make an informed decision on whether to purchase or walk away.
Not all homes marked for sale “As-Is” mean that they have something wrong with them. Most often with an estate sale, the Executor/Beneficiary of the estate is selling the home and may have never lived in it and thus not know or be prepared financially to fix any problems that the home may have. The Sellers may be elderly and just wanting to move on to the next phase of their life and seek an easy transaction. It may also be in foreclosure and now owned by the bank/lender and of course, the bank/lender will not know what could potentially be wrong with the home. The benefit is that these particular situations make for quick closings.
Buying a home “As-Is” for the handy person opens up many opportunities, especially the pricing. If you know that you will be stripping the home and renovating it then “As-Is” is not a deterrent and because work will need to be done, it could mean the Sellers may lower the price. I cannot stress enough that a home inspection should be done so that there is a clear, concise knowledge of what exactly needs to be repaired, especially structurally, otherwise this could be a huge financial burden and a rabbit hole you don`t want to go down.
In conclusion, buying a home “As-Is” can be a good option for some homebuyers, but it is important to weigh the risks and benefits before making a decision. With careful research and the help of a trusted real estate agent, you can find the right home for your needs and budget.
Linda Giroux –Daigle.