Beauty or Beast: Should You Risk an As-Is House?

Recently, I shared with you my first home-buying experience in Moorhead, Minnesota, and the lessons I learned from it.

In reading my story, you might find yourself asking if buying an as-is house is worth the risk. After all, it could be a doozy or a dud, right? A dream come true or your worst nightmare.

Before you leap into what you "think" is a great deal or dismiss the home outright because of its as-is status, take the time to understand what "as-is" really means.

What Does "As-Is" Really Mean?

While "as-is" can have negative connotations, sometimes it simply means that the bank is trying to communicate they don't know enough about the house.

The owner may know the roof leaks, for example, but the bank might not have any way of knowing that. When considering an as-is sale, bear in mind that:

• There are no promises regarding the condition of the house from the seller.
• The seller will not be fixing anything to your liking.
• Any and all repairs are the buyer's responsibility.

How to Move Forward with Confidence in "As-Is" Sales

If you decide to take your chances and pursue an as-is home, here are three tips to keep in mind so you can buy as confidently as possible.

1. Get an inspection.

An inspection has the incredible blessing of one thing: knowledge.

As a former home inspector, I can tell you that the inspection process will bring many of the unknown or unforeseen defects to light. You'll benefit from knowing what you're up against and making an informed decision.

2. "As-is" doesn't mean "no disclosure."

Even though the seller isn't responsible for fixing anything in an as-is seller, that doesn't mean they're entirely off the hook.

Sellers still have an obligation to disclose any knowledge they have regarding the property, and not disclosing what they know could be considered fraud that they could be held liable for.

3. Know your worth.

As-is homes typically sell for $5,000 to $10,000 less than a regular home.

As a buyer, you have to ask yourself if the potential savings are worth the cost and mental energy of making the repairs yourself. As a seller, if you choose to sell your home as-is and not fix things up yourself, bear in mind that you stand to lose money on the sale of your home, so disregard that Zillow estimate. While neither of these is a definite cause not to go forward, you need to decide how much your effort is worth.

Have Someone in Your Corner

If you're looking for an agent you can trust to lead you through the uncharted waters of buying or selling an as-is home, trust the expertise of a home inspector turned agent combined with the character of a Navy Veteran.

An as-is home shouldn't make you instantly run away, but it should encourage you to go in with your eyes wide open and seek the help of a knowledgeable agent on your team who can walk you through the pros and cons.

Avoid your new home turning into a money pit. Let's partner up! 

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or by calling (701) 373-5155.