Buying “Sold As Is” What Does It Mean for Buyers….

Before you decide to purchase a home “Sold As Is” Here are a few points/tips to consider:

1. FHA Mortgage – If you are working with an FHA mortgage, keep in mind that the home needs to be safe for you and your family to occupy at the time of purchase, and it needs to be structurally sound. In other words, it must not have any physical deficiencies or conditions that compromise its structural integrity. Most homes that are sold “as is” need total renovations that won’t qualify for an FHA loan.
2. Home Inspection – If you want to buy an “as-is” home, you’ll definitely want to get a home inspection. A home inspector will let you know all the major issues. This gives you a good idea of what you’ll need to fix and how much it’ll cost if you decide to buy the home. However, the inspection must be done prior to the contingency date for inspection so If you are not happy with the inspection, you can easily back out.
3. Disclosures – Buying an “as-is” home doesn’t mean you give up your right to disclosures. State and federal regulations dictate what the seller has to tell you about known issues within the home.

Should You Buy A “Sold As-Is” House?

So, is buying an “as-is” home really worth it? Before you decide, ask yourself a few questions:

• Do I have money to make repairs?
• Am I prepared to deal with major structural or system damage?
• Do I have a place to stay if the home is uninhabitable?
• Do I have money for an inspection and an appraisal?
• Do I have a trusted real estate agent who has experience with “as-is” sales?
• Am I buying this home not as a first property, but as a second home or investment?

If you answered “yes” to all of these questions, an “as-is” home might be right for you; make sure you consult a financial advisor or real estate professional before moving forward. If not, you’re probably better off working with sellers who are ready to negotiate.