What Does It Mean To Buy A House “As Is” in Connecticut?
If you are looking for a new home, then you might have come across real estate listings that state the property is being sold “as is”. Unfortunately, as with any industry, there is a lot of jargon that you need to navigate. Thankfully, we have a whole post that will help you to understand what “as is” in real estate means, as well as what you need to know, and how you will be impacted by purchasing a property listed “as is”.
What Does “As Is” Mean In Real Estate?
“As is” is a term used by real estate agents to describe a property that is being sold in the condition it is in right now, also known as seen as sold. This is usually a term used when properties are not in very good condition and have suffered some damage or need some renovations or repairs. When you see “as is” on a listing, you can expect that no repairs, renovations, improvements, or changes will be made. If you buy the property, then you are accepting these terms. There are many reasons why a house might be listed “as is”. It might be that:
- The homeowners need a quick sale
- The homeowners might not have the funds to do the repairs
- The homeowners have inherited a house that they do not want or have the time or money to deal with
- The property is going through foreclosure and has a new owner, e.g. the bank
- The property has been left to independent inheritors or an estate agent
It is likely that the property being sold “as is” is cheaper than others of its kind on the market.
What Does Buying a House “As Is” Mean As The Buyer?
If you are looking to buy a house “as is” then you need to know a few things about how it will impact you. You will still have to go through the usual channels and house-buying process, there is no exception. You will be able to attempt to negotiate if you want to see what can be done first or how the price can be adapted to reflect the work, but it is likely that the price has already been reduced and is fixed in place. You can order an inspection, but you cannot order any repairs as a result of the inspection prior to buying the property. This information will have to be used to inform your decision on buying the house and what you will do with it when you become the legal owner.
As the buyer, you must seek the support of your real estate agent and your attorney, to ensure you understand the full picture of what you are getting into, and ensure you obtain clarity and protection. There are a lot of risks when you take on a property “as is”, and you may open yourself up to post-sale problems that you cannot foresee at this early stage. However, some people who buy houses “as is” can be lucky and invest in a property that has a lot of potential and works out very well for them. It is therefore important that you understand as much as you can. Your legal rights do not change just because you are buying a property “as is”. It is still a requirement that you are notified of all known problems.
Pros And Cons Of Selling A Property As Is
Unbeknown to some, there are benefits that you can reap by purchasing a house “as is” as long as you are well informed. Depending on the value and the potential of the property, you could be investing in a fixer-upper. This means that if you have the money to invest in the property, and you know all the issues and costs that are going to be involved, you may have a good opportunity on your hands. This could be a great and exciting project for anyone who likes to flip houses or entertain a very good bargain. If the house is being sold “as is”, it is likely that the current homeowners want to just move on, this means the sale should go through very quickly and without issues or delays.
Many houses that are sold “as is” have significant problems, so there might be a lot of money involved in fixing it up. This means you will have to have the experience, time, skills, and money to make it worth your while. The other disadvantage is that many houses that need repairs, don’t qualify for a mortgage. This means it is limited to cash buyers only. You will have to be careful when buying a house “as is”, there may be many underlying or foundational issues that you just cannot see. You might think you are getting a good deal, then end up investing in a money pit that does not provide you with a very good return. It is then on to you to fork out the money to repair and sell it or try to re-sell it “as is” which will be very difficult if they know your history.
What To Do If You Come Across A Property Listed “As Is”
There are many pros and cons to buying a house “as is”. It is important that you speak with a real estate agent that you can trust and you understand what you are getting yourself into. Many properties being sold “as is” have a lot of potential if you are willing to invest, but you always need to be careful. For help and advice, contact Venture One Realty today!
