Making a Move? Here are Some Things to Think About, Uncategorized, What You Need To Know Before Buying Your First Home
In this 8-part series, How to Find the Perfect Home for You and Your Budget, you’ll learn how to find a home that is the right fit for your lifestyle, needs and, most importantly, your budget. It takes you through every single step and show you how to avoid buyer’s remorse. Your first home is most likely the steppingstone for your next home so you want to do it right and set yourself up financially to move up to your next home.
For this last week, we examine what it means to deal with an “as is” home and if it’s something you should pursue.
You’ve probably seen listings stating a home is being sold “as is.” Does that mean it’s a dump and not worth seeing?
It can be hard to tell since there can be vast differences in the conditions of “as is” homes.
These homes can sometimes be a good deal budget-wise, especially if it gets you into a neighborhood you’ve been eyeing. However, some “as is” homes come with more troublesome issues that could cost you more in the long run.
If you do make an offer on such a home, you need to take certain steps to protect yourself. Here’s how:
Understand What “As Is” Means
Basically, “as is” means the buyer will purchase the home from the seller in its current condition no matter what, since the seller has no intentions to do any repairs to the property before they sell it.
The home could be in pristine condition, or it could be a major “fixer upper.” Smoke detectors and carbon monoxide detectors are the only things that legally need to be working properly!
Know What’s Expected from Sellers
Every state has different laws when it comes to “as is” homes, and every home and every seller has their own story. You’ll need to be more of a detective if you want a complete picture of an “as is” home.
Understand disclosure requirements. Selling a home “as is” in San Diego county does not give the owner the right to hide problems or issues with the property. They must disclose anything that can lower the home’s value or restrict the buyer’s ability to live there.
Any difficulties with the foundation, mold, structural integrity, significant plumbing issues, or other environmental hazards that might be dangerous after the sale must be disclosed to all prospective buyeres. A seller can advertise their home as-is as long as these issues are disclosed up front.
However, if sellers know of something and don’t disclose it, that is considered fraud and the sellers would be liable. Sometimes it is difficult to prove if sellers really were aware of any defects or questionable conditions.
That’s why it is important to have disclosures in writing to protect you in the long run from fraudulent information.
Be proactive and ask about any repair history. Did the seller have water damage at one time and made repairs, which now aren’t obvious to the buyer or the inspector? You want to know as much about this home as possible, especially any water damage history.
Take cautious steps if seller is a nonoccupant. If the property was owned by someone who didn’t live in the home recently—whether it was a landlord who had been renting out the property, an estate selling for a deceased family member, or even a bank in a foreclosure sale, they can’t disclose something they didn’t know about. So be extra vigilant since there could be more wrong with the property than what has been disclosed.
How to Protect Yourself
Take additional steps to ensure you understand the true condition of a home, both apparent and “hidden.” That way you’ll have a better idea for negotiating and budgeting for this home.
Make sure you get a qualified inspector. If you included a home inspection contingency in your offer (which you always should), you are given a window of time to get the house inspected.
You can get a thorough idea of the home’s condition. Does it have a leaky roof, any water damage, serious foundation issues, and pest or termite history?
The results will help you decide whether you will continue with the transaction or not. You can walk away if you’re not comfortable with buying the home.
Get bids from contractors. If there are necessary repairs to be made, contact contractors during this contingency period to have a better idea of future costs.
These estimates could help you during the negotiation period to bring down the price of the home.
Take It, Or Leave It
Overall, if you take the necessary precautions to protect yourself, buying a house “as is” might be a fantastic value. If you do your homework and have a professional inspect the house thoroughly, it could be the “perfect” home for you.
You’ll also want to completely understand what you’re getting yourself into if it is a home that will need lots of work. Honestly ask yourself if you will have the time, the commitment, the patience, and the budget for undertaking any major repairs and making it more livable to your standards.
But remember that you can “take it or leave it” and that’s the beauty of it. If you’re not comfortable, then you can always walk away, as long as you’ve included the right contingencies in your offer to the seller.
I hope you have enjoyed this How to Find the Perfect Home for You and Your Budget series. Here’s a recap and link to the previous articles:
- 12 Questions to Ask Yourself Before You Step Foot in an Open House Before you do anything else, you must evaluate you wants and needs for a home with some self-analysis.
- Are You a House or Location Person? Buyers tend to lean one way or the other, and by knowing this you can streamline your home search either way.
- The 3 Steps Most Buyers Skip When Buying a Home You don’t want to mess up one of the biggest financial decisions of your life so don’t forget to do these 3 things.
- The “Backwards” But Right Way to Finance Your First Home Our way of financing a home will lead you to the right home for your budget.
- How to Get Everything You Want in a Home Here’s how you can learn to balance your budget, location, and criteria so that you do get the “perfect” home for you.
- What YOU Need to Know About Buying for Schools Every first-time buyer needs to decide if “good schools” is on their criteria list, or not. Here’s how.
If you are thinking about buying a home over the next few weeks, months or even a year or two from now, I’d love to help you find the perfect home for you and your budget. I want you to have everything you’ve ever wanted in a home, and I’d love to help you find it without blowing your budget.
Email me and let’s see what’s possible and how close we can get you to your own perfect home sweet home.
I love helping first time home buyers make their first home more affordable and helping sellers looking to move up to their forever home. Let me show you how I can help make your real estate dreams come true.
Contact Me Here:
864 Grand Avenue, #305
San Diego, CA 92109
First Time Buyers
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