If you’re a prospective home buyer, you’ve likely seen the term “as is” pop up during your home search. But what exactly does the phrase mean, and is it cause for alarm?
The technical meaning for selling a home “as is,” is simply that the owner is selling the home in its current state, with absolutely no intentions of making repairs or improvements. Subsequently, it’s extremely unlikely that “as is” will be used to describe a home that is in fantastic condition, ready for move-in. As you can probably imagine, “as is” homes are often in a state of disrepair and in desperate need of maintenance. This is because for whatever reason, the seller simply cannot afford the money to fix these issues. It’s also possible that the home was foreclosed on and is now owned by the bank, or the seller has passed away and left the property to relatives with no clue what the home needs. So, regardless of why, the seller is not willing to fix anything up before a sale; they just want to be rid of it.
It’s not all bad, though! Homes sold “as is” often have a relatively low starting price, and buyers will often have leverage to potentially haggle that price down further in the event a major issue with the home is found during the home inspection. These properties can be fantastic projects for anyone who can use a hammer and wants to try their hand at flipping; or if you simply want a really low price on a new home.
Of course, that’s not to say you should disregard the clear downsides to an “as is” home. There could be all kinds of issues with the home that are not immediately apparent. However, this con can be nullified some by simply taking the precaution of getting a home inspection done. A quality home inspector will examine the property from top to bottom and alert you to any glaring issues, both immediate and potential future issues, such as a roof that will be due for a replacement in ten years. A home inspection will go along ways to helping you fully understand what you are getting in to with that purchase.
A home inspection is inexpensive compared to the price of a home, and will be one of the best investments you can make. On a home that is not sold “as is,” a buyer could use a home inspection to request repairs or a price drop from the seller due to home defects. While it’s already been made clear the seller of an “as is” home won’t be making any of these adjustments, the home inspection will still prove to be very important. If you made sure to include a home inspection contingency in your contract, you have the ability to walk away from the deal with your deposit if the inspector discovers a major issue you are unwilling to address. There are always home inspection finds. The cost is the home inspection is nothing when compared to the cost of blindly signing a contract and then realizing that your new home essentially needs a complete remodel or perhaps a foundation to be made livable.
In summary, “as is” homes can be a great way to get a deal on a home; but it’s important to be smart, and take precautions before you commit to anything. Use your brain, and you could score a lovely deal on your next family home! Do not let someone talk you out of getting a home inspection on an "as is" home. The home inspection is so you know if what you are getting is acceptable to you and your skills and extra cash for improving the home.
The Habitation Investigation company provides mold testing and home inspections in the Central Ohio Columbus and home inspection in the Dayton Ohio areas, Hilliard, Powell, Pickerington, Pataskala, New Albany, Delaware, Gahanna, Westerville, Galloway, Grove City, Worthington, Dublin, Marysville, London, Springfield, West Jefferson, Mechanicsburg and other cities surrounding Columbus, Ohio. The most/best reviewed home inspection company in Columbus Ohio is Habitation Investigation LLC. The website is: https://www.homeinspectionsinohio.com
Written by Kaitlyn Troth of Troth Media