Is buying a home AS-IS a good idea?
That’s a great question, especially in New York where a lot of homes are going on the market AS-IS. Buying a home AS-IS is neither good nor bad, it’s just one strategy home sellers use to get their home sold with as little hassle as possible.
What are the risks of buying a home AS-IS?
Obviously, when you buy a home AS-IS you risk buying a home with major defects that will cost you a lot of money to repair. Heating/air conditioning, roof, basement structure and other major mechanical and physical defects may be present.
Some sellers will let you perform a home inspection that can help you detect these problems, but not all sellers will agree to an inspection prior to closing.
Why are some homes sold AS-IS?
Most homes being sold AS-IS are being sold that way for a number of reasons:
1. So that the seller can avoid paying for repairs on the home
2. Maybe it’s a financial reason due to divorce
3. Lack of funds to do repairs
4. The home was inherited and the sellers don’t want to pay for repairs – they just want a quick sale and pocket the proceeds
5. The home has major defects that make the home unlivable until repairs are completed
What can you do to make sure you are protected with an AS-IS home?
You can go ahead and buy a home being sold AS-IS, but it’s a good idea to buy a home warranty to ensure your appliances and major mechanical are protected if they break. You can also ask to do an inspection for informational purposes only.
Can you negotiate an AS-IS home sale?
What you generally can’t do in an AS-IS arrangement is negotiate for repairs or expect the home seller to lower the price if you find defects in the home prior to closing.
The goal of selling AS-IS for the seller is to do absolutely nothing to the home prior to selling it. And if you ask for concessions or repairs, your offer to buy the home will likely be rejected.
AS-IS homes are not generally open for negotiation! Don’t try to be a savvy buyer and outsmart the seller… your offer will likely be rejected.
Homes being sold AS-IS are not necessarily defective or a bad investment. There are many reasons why the home may be on the market AS-IS… speak to your realtor about the options available if you do happen to fall in love with a home sold AS-IS.
It’s not necessarily a bad thing – it just is what it is!
Selling a home in Dutchess County? Let’s Get You Moving!
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Carlin M. Felder | Licensed Real Estate Salesperson Weichert Realtors
973G Main Street,
Fishkill, NY 12524
Web: www.carlin-felder.weichert.com | Email: carlin.felder@weichert.com
