|Posted on August 25, 2021 at 5:25 PM|
If you're looking to purchase a home, one of the bigger decisions you have to make is about the condition of that home. Are you looking to buy a brand-new home that you won't need to work on, or is buying a house as-is more your style? The latter is the choice that people often make. When you purchase a house in "as-is" condition, the seller makes no promises about the home's physical state. You accept any flaws that may be present. Although this option has many upsides, it also comes with some challenges. Make sure that you have enough information before jumping into anything.
Is purchasing a home as-is for you?
Buying a house as-is isn't something that everyone would enjoy. It could be for you if you're a house flipper searching for a way to make money or if you're handy and know how to discover and solve problems. An as-is home may be problematic for many buyers. However, once you get into the game and acquire enough information, there isn't a reason why you couldn't do this.
A home inspection is imperative
Before buying a house as-is, make sure to have the home inspected. This might be one of the most important parts of purchasing a home. You'll need to plan and consider so many obligations during this time that it's easy to lose track of important things like this. Once you've found your dream home, don't get carried away. Be objective and rational. Have someone come by and inspect the place. Although it seems a bit boring and unnecessary at first, you never know what they can find. It can help save you from quite a bit of debt.
Home warranty negotiations are a must
Getting a home warranty service is basically signing a contract that covers the replacement or repairs of important system components of your house that are bound to break over time. This is most definitely something that you mustn't skip. Not only can a warranty be helpful when it comes to saving money, but it can also help you have peace of mind. It's one less thing to think about in the long run. For these and many other reasons getting a warranty should be a no-brainer, especially when buying a home as-is.
Connect with the top agents in the industry
If you're looking to purchase a house as-is, make sure to find the best options out there. You can do this by connecting with the top agents in the real estate industry. Park Place is a real estate referral company that focuses on referrals. It's the industry leader in this field. With the database of over one million real estate agents that shows which agents are selling, they do research to determine who the top real estate agents in your market area are. They match clients with a top real estate agent in your market with a proven sales record who will rebate you 15% of the total real estate commission. This way, you can save hundreds of dollars.
Research financing options before buying a house as-is
There aren't many financing options when purchasing a home as-is. Any conventional mortgages, that is, mortgages that aren't insured or guaranteed by the government, are available only for some properties. The issue here is that they are allowed to have only certain minor defects. Window cracks, a broken or damaged driveway, and little internal wall damage are all common occurrences.
Lenders are not willing to fund a property that is in poor shape. This is a dangerous situation for them. If the condition worsens to the point where the property loses a significant amount of value or becomes uninhabitable, the mortgagee may not repay the loan.
Plan a budget-friendly relocation
Of course, before you actually settle into your new home, you need to organize your relocation there. Seeing how purchasing a house can drain your budget, do your best to arrange a budget-friendly relocation. Yes, you can do it in a cost-effective way. Although you cannot save on every single part of your moving process, there are some areas that you can go around. Instead of purchasing new packing equipment, you can borrow someone else's, for example. Finding such ways to remove some of the burdens from your budget will be pretty helpful in the future.
Especially if you're buying a home as-is for the first time, it's only natural that you won't know everything right away. That being said, you should make an effort to do as much research as possible. This way, you'll have much better chances of getting your dream house. Don't be afraid to ask even the most basic questions.
● What do you know about the previous owners?
You could have some difficulties dealing with the former owners, depending on what they were like. These problems can be overlooked even during a thorough home inspection, especially if the owner makes every effort to conceal them. Get information on the previous owner if you want to avoid unpleasant surprises down the road.
● Have there been any pets?
Whether you own a pet or not, you should find out if one has previously resided in the house you're buying. Don't forget to ask this question, especially if you or anyone in your family suffers from allergies.
● Where is the sunny side?
Small touches can make a big difference in how you organize your new home and how you live there. You can always get blinds if the light bothers you. However, you will have difficulty bringing more light into your new home if you want it. This means that if you're purchasing a house as-is, you need to be careful.
Follow your gut
Finally, once you have all your facts straight, make sure to follow your gut as well. Don't go into buying a house as-is simply for rational reasons. Make sure that you're in this because you actually want to be.
Written by: Lisa Roberts with US Moving Experts