Buying a Home ‘As-Is’

Many homes today are offered for sale “as is.”  It could be a foreclosed property, a short sale, part of an estate, or a house where the owner can’t afford or is unwilling to make repairs.

If such a property interests you, the first step is to work with a knowledgeable and experienced Realtor.  You will need to have your agent present an offer that is subject to a reasonable inspection period (also called a due diligence period) which will enable you to insure that the home has no hidden defects that would effect your desire to purchase the property.

Once under agreement, your agent should recommend a minimum of three trusted and experienced professional home inspectors and allow you to contact them, discuss the scope of theirs services and fees so that you can choose wisely for the inspector you feel most comfortable with.  An inspection is always important but with an “as is” contract it can be even more so. You need to know if the place just needs carpet and paint or if mechanical systems like heating or plumbing need to be replaced. The condition of the roof, especially here in Florida, is also a critical factor.

It is always suggested that, if at all possible, you are present when the home inspection is made so you can talk with the inspector and understand any issues that become apparent. Make sure the utilities are on for the inspection.

If the inspection reveals some critical defects in major areas of the home that were not disclosed and/or were unknown to the seller (or bank), don’t automatically back out of your purchase contract.  The defect is now known by the selling party and is on record.  If it is important enough to the safety or salability of the home, it will need to be addressed.  Typically you can ask for the defect to be repaired or have your Realtor negotiate a credit off the purchase price.  For smaller or less critical issues, it will be your decision to continue or to cancel the purchase.

Gabe Sanders and Susan Maxwell are leading Realtors successfully serving the public for residential real estate on Florida’s Treasure Coast.