Selling a house as is can be hassle-free for owners. But, for buyers dreaming about having a house of their own, a sweet deal can turn real sour fast. This article will discuss what an as-is house is and then take a deep dive into why it can be risky.
The Basics of Buying and Selling A House As Is
What Is An As-Is House?
The tag “as-is” is a soft warning—even a red flag sometimes. It lets you know that how you see it is how you get it. To be more specific, the house remains in the same condition the moment the owner decides to put it on sale.
Selling a house as-is means the seller won’t take any accountability for any repairs of known issues included in the upfront disclosure. The damage could be structural problems, ruined walls, non-functioning systems, leaking issues, or mold problems. You name it, so be prepared!
At times, the sellers can list some parts or specific items of the house as “as-is” rather than the whole property, such as garages, pools, or any particular appliances. You’re undoubtedly responsible for paying all the bills when buying an as-is house.
Many factors put the house on the market “as-is,” but the real reason is not what you might think. First, the owner may have died, leaving no inheritors. In a few cases, the inheritors want to grab fast cash, so they are willing to let the house go at a low price. For others, they don’t want to spend a hefty amount of money for time-draining renovation.
Beyond these reasons, the house can be owned by real estate investment groups or foreclosures, too.
A Deeper Dive Into Buying and Selling A House As Is
Buyers often fail to understand that they don’t need to rush when buying as-is houses. Don’t be lured into buying a house blindly. What appears to be a sweet deal may turn out to be bittersweet.
The Sweet Part
The first thing that lingers in most buyers’ minds, especially for those on a budget, is how inexpensive it is. Besides the low price, some as-is houses are a perfect canvas for those keen on DIY house projects.
Keep in mind that your legal rights when purchasing a house as-is are the same as regular house purchases. That means you are allowed to negotiate with the seller before making a down payment, depending on your financial plan. Sellers are obligated to disclose all known details before handing over the house. So, know your rights!
The Bitter Part
First of all, having a house tour is necessary to evaluate the actual condition of the house.
In case you have limited knowledge about house construction and real estate evaluation, house inspectors can be your right hand. They can help you gain a clearer perspective on the house you are about to splurge on.
“Why should I pay $200-$500 for just a house inspection?” you might wonder after googling the price. The reason is some sellers tend to neglect significant defects of the house. In contrast, others might pretend that their house is in pristine condition. Furthermore, a quality house inspection can help smooth the bargaining process with the seller. A couple of hundred bucks may keep you from spending a thousand dollars for repairs and renovations later.
Lastly, don’t shrug it off and assume your home warranty will cover all the costs for house renovations. Most of the time, they won’t cover known defects in the house inspection. Make sure to discuss with your realtor about the home warranty policy to avoid any conflicts. If possible, searching for a reliable home warranty service could also help clarify any confusion.
Owning a home can be a dream for first-time buyers. However, everything comes with a price. Don’t be in awe for too long, and be willing to pay for whatever it is to make it easier for you. Remember: a house can be a lifelong commitment, so take as much time as you need before turning the as-is house into your home.
If you have questions about buying or selling a house as-is or any of the details discussed here, connect with us and learn more.
At Wiggins Auctioneers, we provide effective rapid marketing campaigns thanks to our significant experience and dedicated staff. You can build a professional relationship with us based on trust and open communication. Your auction will be successful and operate smoothly in every way.
For a free, private consultation, contact us now! This might be the first step in avoiding an expensive and prolonged property holding term.