As-Is Homebuying Tips

In today’s crazy competitive market, some homebuyers are finding themselves pouncing on just about any listing available. Additionally, since prices are rapidly rising, it’s harder and harder to find something at or below budget. Sometimes this means looking at fixer-upper homes or ones that are listed “as-is”. This is a common term in real estate… but what does it actually mean? 

In a nutshell, an as-is home is being sold exactly that: as-is. The seller is not interested in negotiating the price, and if any recommendations come back from the home inspector, the seller will not fix them. What you see is what you get and you’re on the hook for the unexpected. Perhaps this means you could end up with a diamond in the rough! However, some buyers feel like this is a seller’s way of getting out of a money pit. 

What to Look For in an As-Is Home

When buying as-is, there are a few major things to look for. First, a faulty foundation. Deep cracks in the foundation can signify a failure, which sometimes costs thousands to fix. A licensed home inspector will be able to give you a quick synopsis, while a structural engineer will be able to create a damage report. 

Next, don’t ignore additions. You may see extra space, but if the work wasn’t permitted you could just end up with an extra headache. 

Before moving forward on a contract, check with your homeowners insurance to see if the home itself lies in a flood plain. If the home is located in a flood zone, that could mean an increase in premiums, lack of coverage, and future damage that will cost a lot to repair. 

Lastly, not allowing an inspection would be a major red flag where you might even consider walking away. It’s not a great idea to waive a home inspection on the best of homes, much less one being sold as-is. If the seller will not allow a home inspection, this tends to mean they’re hiding something. Every buyer deserves to know what they’re buying so if the seller says no inspections, then run for the hills.