If you’ve ever browsed homes for sales on website or apps you may have noticed the phrase, “As is.” Maybe you see these two little words as an opportunity. Or, perhaps you see them as a warning. Maybe, you’re wondering exactly what it is they mean?
Technically speaking, when a home is listed “As is,” it means the sellers will not make any improvements, repairs or provide the buyer any credits. This is why some people may see “As is” and turn the other way. Rarely, are these homes in perfect, move-in condition. Some reasons the sellers may not be willing to make improvements are: they don’t have the funds; they inherited the home and don’t have the funds, the home is foreclosed or already bank owned, or the owners simply have had no issues and can’t justify spending unnecessary money.
However, others might see the phrase, do some quick math and realize that “As is” often means, a lower selling price. With a few repairs, the value of home could be significantly improved and the buyer could end up making a profit. Especially, if the seller is willing to entertain an offer even lower than the list price.
The necessary repairs may or may not be obvious at first sight. If you are interested in taking advantage of an “As is” property, we highly recommend a home inspection. Inspections typically occur after your offer has been accepted and you’ve put down your earnest money. Additionally, it can be strategic advantage to place a contingency in your offer. This means the deal rests on the results of the inspection and if the existing issues are more than you want to deal with, or can afford to tackle, then you have the ability to walk away.
Regardless of the condition of a property, an inspection is a necessary step that benefits both the buyer and the seller. Now, the next time you see the words “As is,” will you click next, or capitalize on a potential money-making opportunity?
Call us for more information or help with your housing needs. 773.828.0903.