Buying or selling a home 'as is' on
the real estate market today is fairly common. As Americans move more
often and the practice of renovating run-down homes for profit grows
more widespread, many sellers aren't finding it necessary to repair
the defects in their property before putting it on the market. They're
much more liable today to find a buyer who's willing to purchase the
home, defects and all.
How does 'as is' selling work? The process is simple. The contract simply
states that the seller is not responsible for making any repairs to
the home before the buyer takes possession. The seller is still required
to disclose any defects of which they are aware. However, if other defects
appear after the sale is complete, the seller is not liable for those
problems, provided they didn't hide knowledge of the condition during
the sale.
With the 'as is' buying and selling process, sellers accept the fact
that they're getting less money for their home. Buyers are entitled
to a lower price to make up for the cost of repairs. Usually sellers
who put their homes on the market as is are not as interested in high
market value as they are in a quick sale; or they simply do not have
the resources to make the repairs before sale.
In order to sell a home as is, however, a home inspection is still required.
Both parties must be aware of the damages, so that the buyer knows what
he is getting into and the seller knows approximately how much he is
going to lose in market value.
Purchasing a home with knowledge of its condition allows a buyer to
examine his budget and decide if purchase price plus repair cost is
worth it. Usually, it is- the buyer is essentially paying less because
he's willing to go through the hassle of repairs, and not necessarily
because the repairs will cost a certain amount. Also, often the defects
in a home are perfectly livable; for example, if a seller refuses to
put a new coat of paint on the rooms, then the house qualifies for an
as is sale. The industrious buyer who doesn't mind painting a few rooms
can get his purchase price lowered for the sake of a very easy repair.
In a home being sold as is, both sides would do well to hire home inspectors,
and check the house over thoroughly. Provided the seller doesn't mind
losing a little sticker price, and the buyer doesn't mind a few costs
down the road, it can be an excellent deal for both sides. One gets
out with having to do any work and makes a quick sale; the other gets
a bargain home that needs a little TLC.
About The Author:
Peter Dobler is a veteran in the IT business. His passion for experimenting
with new internet marketing strategies leads him to explore new niche
markets.
Read more about his experience with real estate; visit
http://real-estate.online-business-idea.com
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