You’ve probably seen it before, a seemingly good-looking home with lots of charm and potential that just happens to be listed “as is.” Simply put, with an as-is home, you’re buying the home in its current condition.
Your immediate reaction may be to assume that something is wrong with the house and you may become turned off by the idea of having to completely overhaul a major portion of it. While there may be good reason to be weary, it doesn’t necessarily mean that you shouldn’t give the home a fair chance. There are a few reasons why that home that you fell in love with from the photos is listed as-is.
The seller may be lacking the funds to make the repairs to the home. Normally there is some room to discuss the possibility of the seller making some repairs during negotiations. However, if the home is listed as-is, that option is off the table. A home may also be sold as-is in the case of an estate sale. Additionally, someone may opt to sell a home “as is” is if they are unfamiliar with the property’s condition. This may be the case when a bank forecloses on a home. In this situation, “the bank isn’t in a position to give warranties on the condition of the home and they probably aren’t going to put money in to fix it up,” says RECO Registrar Joseph Richer.
Of course, the last thing you want when you’re buying a home are surprises. Just like with any other home you might consider purchasing, opt for a home inspection. According to Richer, you should “Talk with your real estate professional about including a clause in your offer subject to your satisfaction with the inspection results. As long as the clause is properly drafted by your real estate representative or lawyer, you’ll be able to walk away from the deal if the inspection uncovers a budget-busting issue you aren’t willing to address.” When in doubt, be sure to ask lots of questions.
To read more of what Richler has to say about the subject, check out this article:
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