Buying a home as-is can be enticing. For those who’ve been struggling to get into the market, the price point can be more affordable. For others looking to buy when housing supply is low, it can present a viable avenue to explore. However, it’s important to bear in mind the decision to buy a home as-is works for some, but not for all.

Buying a home as-is means the homeowner is selling the home in its current condition, and will make no repairs or improvements, before or after closing. Essentially, what you see is what you get, but what you don’t see is also what you get.

When the correct steps are taken, buying a home this way could be a calculated and worthwhile risk that pays off, but not everyone will have the same experience, because the seller isn’t warranting anything about the home and they are not going to be making any fixes or repairs.

Buying a home as-is comes with its own unique set of benefits and challenges, some of which we’ve outlined below.

When buying as-is could be a good idea

There are several reasons why the property may be sold as-is. 

Homes sold in as-is condition doesn’t necessarily mean they’re faulty. Sellers may want to sell a home as-is because they want a smoother transaction with less hassle, or they may be a beneficiary (selling the home as an estate sale) and are in no position to warrant anything as they’ve never even lived in the home before.

As-is properties offer opportunities to buyers, and some of the pros include the price because it allows a buyer to enter the market they may not have been able to otherwise. Timelines are also appealing as the majority of these properties are vacant and prefer a quick closing, allowing the buyer the opportunity to acquire the property relatively quickly. For those who are handy and have contacts to assist in the renovations, this could be a chance to increase the value of the property and look to refinance and engage in the next project or investment, with the equity.

Additional circumstances where buying as-is could be the best move could also include when a buyer is in a multiple offer situation and they really want to win, knowing their plans are to gut and fully renovate the property. In that case, having the seller warrant any repairs or guarantee everything is in working condition is unnecessary.

There are specific instances when an as-is sale is advantageous, but knowing exactly what’s being bought is crucial. The only way for the buyer to ensure they’re “in the know” is by setting up a home inspection so there aren’t any avoidable surprises down the line.

When buying as-is might not be a good fit

It’s actually a very wise decision to have a home inspection done so there’s a clear understanding of exactly what the buyer is getting into. Knowing what repairs are required upfront, as well as the cost, is a must. As-is properties tend to have an attractive price point, but that doesn’t mean potential buyers should blindly launch themselves at the opportunity. Refurbishments can add up and become costly, especially if upgrades have to be made at a structural level. 

The mindset of the buyer is also very important. If they’re not handy, tackling DIY projects that could jeopardize their safety and that of others around them could end up costing more money in the long run if or when professionals need to be brought in to rectify the problem.

Is buying a home as-is for you?

As they say, there’s a home for everyone, but not every home is the one. Despite the compelling price point, buying a home as-is can become a financial burden, but it’s certainly not all doom and gloom when it comes to these types of properties. Secure an inspection and build a clear understanding of the work and costs of what the purchase will entail. 

Work with The Lennox Team to find out your personal boundaries when it comes to taking risks and if you find an as-is property you’re interested in, have John or Lenore research why the seller has listed it that way. For some, it may be worth the potential payoff. For others, the stress and headache could be big deterrents.

We can help determine what’s best for your situation and make sure you land in a home you love.