Buying a House As-Is
If you're in the market for a new home, then you may have come across some listings for homes that are being sold "as-is". But what does that mean, and should you be concerned?
What "As-Is" Means
When someone sells their home as-is, it means that they do not want to complete any repairs before they close on the home. As a buyer, there are no guarantees that everything in the home will be in working condition.
What "As-Is" Doesn't Mean
Just because a home is being as-is doesn't mean it's in terrible condition. You aren't necessarily buying a home that needs major renovations to be livable. In many cases, the seller may simply not want to deal with minor issues or they may not have the money to make repairs.
You Should Insist on a Home Inspection
If you're thinking about buying a home that is listed as-is, then you should definitely get a home inspection. An inspection will uncover any issues in the home so that you will know what to expect.
Disclosures Are Still Required
When you purchase an as-is home, you still have the right to seller disclosures. There are laws in every state that dictate what a seller must tell you about a home before selling.
You May Have Limited Financing Options
Not all lenders are willing to offer to finance a home sold in as-is condition. Homes that are sold as-is usually do not qualify for mortgages backed by the federal government, such as FHA loans, VA loans, and USDA loans.