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Buying a Home in its ĎAs Isí Condition


By Sadiya Anjum

A home put up for sale in an Ďas isí condition does not necessarily mean that it is in a bad state. The term Ďas isí simply implies that the home is being sold in its present condition and the seller is not obligated to repair any defects. There is no warranty offered on the condition of the home. Probate, foreclosure and HUD homes are usually sold Ďas isí since the party selling may not have an accurate idea of the condition of the home.

Other homeowners may sell in an Ďas isí condition for several reasons. The most common ones include lack of funds to make the repairs, time constraints, older people who may not have the strength or the will to supervise repairs etc. Defects in these kinds of homes may be minor or major; it is a home inspection that will reveal the true condition of the home.

Home buyers should not dismiss any Ďas isí homes even though it may mean having to do a fair bit of repairs. It is usually investors who purchase these homes, fix them up and sell them at a higher price. It is not uncommon for home buyers to skip over any homes that are not in their best condition. But these homes can be highly profitable especially if it is in a good neighborhood and the property value is high. These homes are usually ideal for those who want to do some extensive renovations.

The greatest advantage with Ďas isí homes is that the purchase price will be comparatively lower. But buyers must take into account the total cost of purchasing the property Ė the sale price and the cost for repairs and renovations. You may even land up laying less tax in the end. However for those who do not have the energy or will to renovate should perhaps stay away from these homes.

While buying a home Ďas isí has its own benefits, it may do you no good if you buy a home that is severely damaged at a high price. Home buyers must proceed with caution in these situations. Although home sellers are not obligated to make any repairs, they are obligated to reveal the condition of the property in writing.

There are chances of the seller not knowing about certain defects. If you purchase the home and these defects show up later, you may not be able to take any legal action against the seller if you do not have proof that the seller knew about the problem during the transaction. If you like a home in its Ďas isí condition, you must safeguard yourself with an inspection and a contingency clause in your agreement based on the same.

When you make the offer to purchase, make sure that you can get out of the deal without damage if undesirable problems arise during the inspection. The contingency clause should be based on your satisfaction with the inspection. If a defect whose repair does not fit your budget shows up, then you should have the option to walk out with your earnest money deposit safe in your hands.

Hire an inspector who is qualified with good credentials. He should have experience in inspecting similar homes. Avoid hiring an inspector recommended by the agent as he may suggest one who is not that strict or particular Ė potential Ďdeal killersí may be avoided by agents. Be present during an inspection so you can have a better idea of the defects that may be revealed.

If you are satisfied with the inspection, you may go ahead and buy the home. If you are not happy with a particular defect or issue, you may consider negotiating with the seller. The seller of course is not obligated to make the repairs or give you credit to do the same or reduce the purchase price. It all boils down to the condition of the market Ėand how badly you want to purchase the home. If the seller has no other buyers, then he may be willing to compromise.

Calculate the total cost for repairs or renovation and take this into account when purchasing a home. Depending on this, you should be able to decide whether or not you want to buy it. Buying an Ďas isí home is not a bad idea, it can be profitable in some ways. But you must be careful Ė get the best inspection possible and include a contingency clause in your agreement. As long as you are safe, you may just find a profitable deal in your hands.

 

Article Source: ChoiceOfHomes.com - Real Estate Listings Online

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