Explaining “As Is” On A Home Listing
As you’re browsing property listings to find a new home or an investment property, you might come across a home listing that is marked “as is.” Some property investors will turn away from properties with this home listing while others will jump at what seems to be a great opportunity. So what exactly does a home listing “as is” mean when it comes to homes being sold?
“As is” typically means that a property is being sold in the condition that you find it. If you tour a home that is marked in this way, what you see is what you will get if you make the winning bid. However, this can have some additional implications in the world or real estate.
Here is what you need to know about a home listing marked “as is.”
They Often Have Issues
In most cases, a home that has been fully renovated, cleaned and upgraded won’t be marked “as is” in the home listing. This marking is almost always reserved for homes that have some issues that might be a problem for potential buyers. When you think about it, this makes sense. Property sellers who are ready to offload a property have it in their best interest to be upfront about any problems with the property. After all, hiding issues from a buyer is a good way to lose out on a deal.
The extent of the issues with the property can vary widely from one home to another. Some may simply be in a minor state of disrepair while others can come with a large number of problems. In some cases, these properties may have one or two major issues, such as electrical problems or insulation issues, while others may have many smaller quirks.
When you tour one of these properties, ask for a home inspection report and a detailed breakdown of all the problems with the home.
You’ll be Responsible for Repairs
Sellers mark a home listing “as is” to indicate that they do not wish to be responsible for fixing up the property. They are indicating that, if you buy the home, you’ll assume all responsibility for repairs and improvements. Whether or not you want to take on this project is something that you should consider carefully.
Remember, home improvements can be costly and time-consuming. You might be able to close a deal quickly on an “as is” home but you could spend weeks or months getting it ready to live in. Carefully calculate the costs and time that it will take to spruce up that home before you make an offer.
You Could Save A Bundle
In general, a home listing is marked “as is” with an understanding that the buyer can get the property for a price that is below market value. The seller is trying to indicate that they may have a willingness to negotiate or to start with a lower total price. This could be a big advantage for you if you can afford to correct the problems with the property.
Should you buy an “as is” home? Consider all the items in this list before you make the decision.