The idea of buying a house as-is with inspection has become very appealing to many home buyers these days. But what does an “as is property for sale” mean, and what does that entail? Our focus is to help you figure out what this means, but also why it might be a good idea to make such a home purchase. Of course, there are always pros and cons when it comes to buying a home as-is, yet here’s what you need to know.
What does buying a house as-is with inspection mean?
Buying a home as-is means you’re purchasing the property without the seller making any repairs. In the case of a traditional transaction, the buyer can request certain repairs before closing the deal. However, if you are buying a house as-is without inspection or with inspection, you’re getting the home in its current state.
That means if you need to make any repairs, those will be made from your own money. Depending on the situation, you may deal with problems like a faulty HVAC system or damaged roof, rodent/pest infestations, mold/mildew problems, plumbing issues, and so on. If you check posts about buying a house as is Reddit, you will see a lot of horror stories where people had to deal with major repairs.
And that’s why it makes sense to focus on buying a house as-is with inspection. The inspection is necessary because you can figure out how many repairs you need to make and how much that will cost. Sometimes, as-is houses are sold in bad condition, so you want to minimize risks. If you perform an inspection before buying, you’ll know how much the repairs cost, and that will give you some negotiating power.
What should you consider when buying a house as-is?
In general, these homes might require some repairs; some might need expensive repairs, while others just require a small remodel. However, you will need to do certain repairs, so that’s a thing to keep in mind. An inspection might be handy because you can identify if there are safety hazards or certain issues that could arise.
The benefits of buying a home as-is
- As we mentioned earlier, buying a house as-is with inspection will allow you to renovate it the way you want. That brings excellent design opportunities, and you can enjoy some amazing renovations. It’s easier to customize the home, and you’re not paying as much when compared to a regular home!
- If you buy a home without the seller doing any repairs, you have more negotiating power. These homes are priced lower when compared to any homes in the area. If you also go through a home inspection before buying, you can highlight downsides and expenses, something that makes it easier to negotiate a deal. That’s why it’s a great idea to buy a home as-is because you can spend less money while also having control over the design as well!
- If you’re an investor, buying a house as-is with inspection is an excellent idea. You get to purchase a home on the cheap side and renovate it, then sell it for a profit. It’s the best approach if you want to flip houses. Plus, you also get to help someone who is looking for money, so everyone wins. In a lot of cases, buying houses as-is and renovating them to sell for a profit can be an excellent business venture.
In general, it’s a very good idea to buy a house as-is, but you have to be wary of how much you need to invest in it. Most of the time, these houses will require some repairs, so it makes sense to do a quick inspection and narrow down any of the costs. Otherwise, if you’re buying a house as-is without inspection, that can be risky. Sure, you might not have to deal with tons of repairs, but at the same time, issues can arise from where you’re expecting less. That’s why a home inspection is pretty much necessary, especially if you’re buying homes as-is.
Can you get a loan on a house sold as-is?
A lot of people are wondering, can you get a loan on a house sold as-is? It’s easy to see why, because a home that’s not in excellent shape might require repairs, and not all lenders are ok with that. Usually, lenders offer loans for a house sold as-is because, in many regions, most houses sell like that.
The reason why sellers choose to sell their property as-is tends to be a lack of resources. They don’t have money to invest in repairs, so they are willing to sell the house for a lower price, and the buyer will have to deal with any repairs themselves.
Are all as-is homes a fixer-upper? No, in fact, most of the time, these homes need very few repairs. However, sellers are forced to sell right away because they need money fast and don’t have time or resources for repairs. That’s especially true when you buy a foreclosed home; these are sold as-is, and the price is lower as compensation for any repairs that you might need to do.
Steps to go through when buying a house as-is
- Check the different listings with as-is homes for sale and see which one fits your requirements.
- Insist on a home inspection because it will help you narrow down any problems and thus boost your negotiating power.
- Check the disclosure regulations within your state. Some states will require sellers to disclose flood damage, for example, or the presence of lead-based paint on the property. It still helps if you go through a home inspection!
- Understand what’s sold as-is with the house. Some sellers will list as-is only parts of the property. You want to have a good understanding of what you’re paying for, and that’s why you need to know exactly what’s being sold and what you’re getting for the money.
- Negotiate with the seller and find a price that you are both comfortable with. And yes, you can use the home inspection findings to your advantage. You can show that certain parts of the property need to be repaired, and that will allow you to lower the prices a bit.
- Once you finalize that process, you can finalize the offer and close the deal.
It’s very important not to rush when it comes to buying a house as-is with inspection. Wait for the home inspection results, see what you need to repair, and then you can adapt accordingly. It’s a good idea to place an offer once you know all the details, see what you need to repair, and so on. Rushing with an offer is never a good idea because you want to have a good understanding of what you’re paying for.
Will you lose money selling a house as-is?
That’s a question that a lot of people have: how much do you lose selling a house as-is? It’s a fair question because, realistically, when you sell a home in need of repairs, you must lower the prices quite a bit. So yes, you will lose money if you sell your home as-is, on average around 10% to 20% of the home’s market value.
When a buyer wants to acquire a home as-is, he will take into account a multitude of different things. Those include the market conditions, but also the location of the home along with its current condition. Some of the common issues found in homes sold as-is are cosmetic fixes, having an outdated HVAC system, etc. Certain buyers are not worried about that, while others try to stay away from homes that require a lot of fixes.
If you want to sell your home as-is, you can get in touch with House4Cash today. Selling your home as-is can be an advantage because you get money right away without having to wait for a lot of time. Plus, most homes can be sold as-is in just a few days, a process that’s very convenient and seamless. Additionally, House4Cash will pay the closing costs and doesn’t require any commissions. As a home seller, you don’t have to worry about repairs, cleaning, or anything. You get paid for the property, and House4Cash will do all the work on its own.
Conclusion
The idea of buying a house as-is with inspection can be great, especially if you enjoy having more negotiating power as a buyer. You get the opportunity to buy a house that you’re going to renovate anyway, and the process is very seamless. On top of that, a lot of homes are sold as-is, so you have a large array of options to consider. If you’re serious about buying a house as-is, you should consider working with a home inspector. Yes, a home inspection is ideal when buying a house as-is because you never know what hidden costs might arise once you acquire the property. With a home inspection, you have a good idea of what repair costs you can expect after the property’s acquisition. It also gives you more negotiating power while saving time and eliminating any unknowns. Always focus on getting a home inspection done when you’re buying a house as-is, just to eliminate any risks or financial losses!
