Purchasing real estate isn’t as simple as finding a house you want in a neighborhood or online listing and buying it. The sale process can take several weeks or months from start to finish. It’s also one of the most expensive investments that the majority of adults will ever make, so it’s okay to take as much time as you need before making an offer.
You may notice that some sellers have opted to eschew the traditional assistance of a real estate agent and sell their houses “as is.” This is fairly common in residential areas and at home auctions, where foreclosed properties are put up on the auction block by mortgage lenders. Every home sale has some potential risk, and as is home are no exception.
Buying a home in Georgia requires careful planning. Pay attention to current market trends and economic conditions. You should be able to determine if you’re currently in a buyer’s market or a seller’s market. There could also be untimely problems or delays along the way that you’ll have to deal with. Keep an open mind no matter what happens. Optimism, patience and a proactive plan of action can help you accomplish the end goal. Here are a few things to know about buying a house that’s listed “as is.”
There are advantages and disadvantages to purchasing a home that’s sold “as is.” Some of the common pros and cons are as follows:
Advantages:
1. You could get a good deal. One reason that some buyers prefer to seek out properties is value. It can take some careful research, but you may end up with a fantastic home at an unbelievable price. It could be your primary residence, a guest house, a vacation home or a good retirement property.
2. They can be flipped. If you’re in the market for a house that you plan to renovate and turn around and sell for a profit, an “as is” house could be just what you’re looking for. Some people make a career of buying “as is” properties. They will either make the necessary upgrades themself or hire professionals to perform the required tasks. The owners then put the renovated house up for sale and use the proceeds from the transaction to buy another “as is” house. They may repeat this process multiple times.
3. Sellers are required to disclose any known defects. If there are issues with a home, the seller of that residence is legally obligated to inform all prospective buyers about those issues. Even though Georgia does not mandate that home sellers prepare or provide a disclosure form to interested parties, it’s still a good idea to inform them of any areas of concern. The seller must know that such problems exist or have the capability to become bigger concerns in the future.
Disadvantages:
1. You may not know its condition. Sellers who put their homes up for sale “as is” don’t always need to let prospective buyers visit or otherwise examine the property’s condition. It could be in great shape or in need of significant repairs. It can be difficult to budget for those expenses, because you probably won’t know the extent of any repairs or renovations that will need to be made.
2. There could be an issue in securing the property title. A primary drawback of buying an “as is” house is that the title for the home might not be free and clear. The seller may not have title to the property. Contractors and other third parties could also have liens or be allowed to make claims against the title. You may need to conduct a title search to confirm the true owner of the home that you have your heart set on in that instance.
3. The seller may not agree or be obligated to pay for any required repairs. After a seller accepts an offer, a purchase agreement will be created. The home sale may have certain clauses that the transaction will depend on, such as the deal being contingent upon having the home inspected. A home inspection is an important part of any residential real estate sale. The inspector will examine the interior condition of the residence. They will then issue a report with their findings. The information may include an estimate as to how much it would cost to remedy any issues that were detected.
You can ask the home seller any questions that you may have about the home’s condition. They should answer honestly. It’s very possible that the seller may simply be unable to afford the repairs that the home needs. They could also be elderly and may need to move due to health concerns or other matters.You can also address your concerns with your realtor. A good realtor should have several years of experience in handling “as is” home sale transactions.
Stay in contact with the seller if you’re still interested in their house. You may offer to negotiate with them before the sale contract has been signed and filed. They could be willing to make concessions, such as paying some or all of your closing costs or lowering their sale price in exchange for you taking on the responsibility for the repairs and upgrades to the home.
You can also hire a real estate attorney if there are issues that have not been addressed or if you have further concerns about an “as is” home. Just be prepared to budget for their fees and other expenses. Keep in mind that you’ll need to have enough funds set aside for your down payment, closing costs, monthly mortgage and utility payments along with your other regular monthly bills.
Acquiring an “as is” house may take more effort than many other traditional kinds of home sales. You probably won’t have as much information, which could be good or bad, depending on the specific situation. The house could be something that you’ll want to move quickly. It could also be a perfect place where you, your friends and family members will spend quality time together creating amazing memories that will last for many years to come.
Have Questions? Ask The Kevin Pickles Team!
Your real estate agent is the best source of information about the local community and real estate topics. Give The Kevin Pickles Team a call today at (678) 887-1967 to learn more about local areas, discuss selling a house, or tour available homes for sale.
