Buying A Home As Is

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Buying A Home As Is – As Is home buying is something most people do in their lifetime. It doesn’t have a very exotic meaning to it. All it means is you are purchasing the home in the current condition and the seller will make  no repairs to the property.

As a home buyer or a person into real estate investing, you are bound to run by a number of homes that have the words “As Is” listed in the sales listing. Don’t be alarmed by this at all. It is very common, particularly in a market like this when there are a number of foreclosures on the market and opportunities to pick up homes at a distressed prices.

Read More: 5 Things You Need To Know Before Buying a Foreclosure

Buying A Home As Is

Buying A Home As Is

There is nothing wrong with buying a home in As Is condition. As I mentioned, it is fairly common in markets like theses, therefore, you may as well get use to seeing it. It doesn’t necessarily mean anything is wrong with the property, but you should be aware of what you are getting yourself into.

There are four points I would like to get across to you today if you are considering buying a home in As Is condition. Take these points, consider them strongly, and realize there are some commitments you are making to yourself and the home by making this purchase.

No Repairs Will Be Made – I already mentioned this above, but I feel it is necessary to drive the point home. There will be no repairs made to the As Is property by the seller. This could be the bank who had to foreclose on someone because of lack of payment. The banks are highly unlikely to make repairs you request to the property, therefore, they list it as an As Is sale.

This could also be a distressed homeowner selling the house as a last resort. They don’t have any extra funds to make requested repairs to the property, so you are going to be expected to do this once you have purchased the home.

As Is Mortgage Lender – Unless you have straight cash for the purchase, you will need to acquire a lender willing to make As Is loans on a property. Many lenders don’t like to get into this situation because the property is not in move in condition. Be aware of this before you go searching for your dream home only to find out you will need to buy it in As Is condition.

Get a Home Inspection – If you are buying with the assistance of a lender, you will need to get a home inspection. If you are buying with cash, which many people can afford these days thanks to the distressed prices, it is not required, but I am begging you to get a home inspection.

The home inspection will tell you all the problem areas with the property you are purchasing. Since the seller is selling the property in As Is condition and will not be making any repairs to the property, it is wise for you to know exactly what you are getting into before you sign a purchase contract.

Get Quotes From Multiple Contractors – During the negotiation and before the sale, be sure to get yourself a few contractors to the property. Get several quotes on the work to be done from each of them.

You should have a pretty good idea of what needs to be done to the property to make it livable from the home inspection. However, you may have some extra cosmetic touches you want done to the property as well. Be sure to include this in the contractors quote or bid on the property.

It shouldn’t cost anything to have a contract come out to your potential purchase to give you a quote. If they try to charge you, just let them know you will be calling on the services of another company and do so if they don’t wave their initial fee.

These steps should protect you when you venture into the world of buying a home in As Is condition. There is nothing wrong with making these sort of buying decisions, you just have to know what you are getting yourself into before you sign the purchase contract.

Listen to the steps outlined above and you should be just fine when Buying A Home As Is.