Why Do People Sell “As-Is”?
Sellers on occasion will be interested in selling their home ”as-is” for any one of a number of reasons. It removes any liability for problems and defects in the home, it allows them to avoid the expense of fixing it up to sell, or perhaps they are in a hurry to move and don’t have time to renovate. Perhaps they’re in a financial bind and don’t have the money to renovate the home and need a quick sale.
The Opportunity
A buyer that has the financial resources or skills to purchase a home that is need of, sometimes extensive, repairs can often make a sizable profit by either flipping the home or moving in and acquiring significant equity after performing repairs or a full scale renovation.
There is nothing at all wrong with buying a home as-is at a favorable price and it can result in a sizable profit or a home and neighborhood you couldn’t otherwise afford, and often the sellers are not using an agent so you will save on the commission. One caveat – if you are considering buying an “as is” home be sure to hire a certified, competent home inspector to perform an inspection.
Why Hire an Inspector
You don’t know that the meaning of “as is” is! A walk through can allow you to see obvious problems or potential problem areas, and if you have experience in real estate or the building trades you may see things that others don’t, but you won’t come close to getting the detailed and certified information you will get from an experience InterNACHI inspector. They will have extensive training in finding problems that even an experience home buyer may miss. An InterNACHI inspector must follow InterNACHI’s Residential Standards of Practice and check the roof, exterior, interior, foundation, basement, fireplace, attic, insulation, ventilation, doors, windows, heating system, cooling system, plumbing system, and electrical system for enumerated defects, and having this report in hand, you’ll now know what “as is” means in the case of the home you are considering purchasing. It can help steer you away from a potentially bad deal, but can also help you negotiate a better price from the seller when you are armed with detailed facts about the property.
Peach State Home Inspections operates in Georgia, where the State requires the seller to provide written disclosures about the condition of the property. Sellers typically provide little information in an as-is sale, and on occasion misstate the condition of the home. A home inspection by a Certified InterNACHI Inspector can throw a light on any missing or misstated information and you can use that to your advantage in negotiations or walk away from the deal if it’s not in your interest.
Home Inspections After the Sale
What if you discover problems with an “as is” purchase after the closing but didn’t hire a home inspector? A home inspector can look over the seller’s disclosure and testify as to what the seller knew or should have known about, or perhaps evidence that the seller misrepresented or concealed relevant information. An as-is sale does not relive the seller of liability in the event they withheld or concealed information.
The Prudent Course of Action
Hire a home inspector when purchasing an as-is home! The inspection cost is a small fraction of what you’ll be spending on the home and repairs and can pay for itself many times over. If you’re purchasing an as-is home in Metro Atlanta, North Georgia, Macon or Warner Robins call Peach State Inspections today and speak with a Certified InterNACHI inspector.