“You don’t need an inspection because you are buying an “AS IS” home.” We have heard this so many times from not only Buyers of real estate but also, surprisingly, real estate agents. That is great, but have you asked yourself what the “As Is” really IS?! Not knowing the facts up front could COST YOU later.
Here are some questions to ask yourself before you assume the risk of an “As Is” deal, priced too good to pass up.
- Is the roof covering doing what it is supposed to do? Is the roof nearing the end of its functional life, properly installed or starting to leak? This will be an expense prospective Buyers should factor in to their upcoming expenses if issues are present. Roof replacement will cost a minimum of $5,000 or more, depending on the size of the home and the complexity of the roof.
- Is there polybutylene piping in the home? Polybutylene piping has caused significant damage over the years and a class action lawsuit was filed regarding the product that was vastly used in homes built in the 80’s. Replacement of the piping may be necessary in order to obtain homeowners insurance and should be budgeted accordingly.
- Has the exterior siding or stucco been installed properly or are they suffering prematurely from moisture intrusion or installation issues? Replacement of siding or stucco is very costly. Knowing the issues ahead of time will allow prospective Buyers to factor replacement/repair costs into their budget.
- Are there any structural deficiencies? Structural issues can be difficult to determine without an experienced inspector. Something that may seem small, could mean the integrity of the dwelling is compromised. Repair of structural issues can be very expensive.
- Have there been any repairs to the electrical, structural, plumbing or mechanical systems recently? Knowing about these repairs and knowing they were done correctly can save you time and money.
- Have there ever been any microbial issues with the home? Indoor air quality and mold are hot topics for home Buyers.
- Was there a significant remodel completed? Repair or upgrade? If so, there should be permits and inspection reports on file with the local building department. Were the repairs/upgrades completed correctly?
- Does the home have Chinese Drywall? The questions outlined above are just a small example of conditions that can be ongoing, hidden or not disclosed. If you purchase a home “as is” without a proper inspection, you will assume these undisclosed or hidden risks and have no recourse after closing because of the “as is” contract.
When considering an “as is” deal therefore, you MUST know what the “AS IS” condition of the home is before you purchase. Without this knowledge, you could be facing thousands of dollars in repairs and/or remediation. Do not bypass the inspection because of the “As Is” contingency: you do not know if it really IS a deal yet!